Globalstar (NASDAQ:GSAT) Shares Gap Up After Earnings Beat

Key Points

• Globalstar (NASDAQ:GSAT) shares surged from a previous closing price of $25.18 to an opening price of $27.39 after the company reported quarterly earnings of $0.13 EPS, significantly beating the consensus estimate of ($0.09).
• Insider activity saw Director James Monroe III acquire 50,000 shares at $18.68 each, increasing his holdings to approximately 58.8 million shares, valued at over $1.1 billion, while insiders collectively own 61% of the company.
• Several institutional investors have recently increased their stakes in Globalstar, with notable increases from Penserra Capital Management (up 320.9%) and Connor Clark & Lunn Investment Management (up 124.0%) in the second quarter.

Globalstar, Inc. (NASDAQ:GSAT - Get Free Report)'s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $25.18, but opened at $27.39. Globalstar shares last traded at $29.60, with a volume of 482,463 shares traded.

The company reported $0.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.09) by $0.22. Globalstar had a negative return on equity of 1.16% and a negative net margin of 17.80%.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen raised Globalstar from a "sell" rating to a "hold" rating in a report on Monday, June 23rd.

Insider Buying and Selling at Globalstar

In other Globalstar news, Director James Monroe III purchased 50,000 shares of the stock in a transaction on Friday, May 16th. The shares were purchased at an average price of $18.68 per share, with a total value of $934,000.00. Following the acquisition, the director directly owned 58,833,076 shares in the company, valued at approximately $1,099,001,859.68. The trade was a 0.09% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 61.00% of the stock is currently owned by insiders.

Institutional Trading of Globalstar

Several institutional investors and hedge funds have recently modified their holdings of the business. Geode Capital Management LLC raised its holdings in shares of Globalstar by 1.6% in the 2nd quarter. Geode Capital Management LLC now owns 1,274,523 shares of the company's stock valued at $30,019,000 after acquiring an additional 20,514 shares in the last quarter. Penserra Capital Management LLC raised its holdings in shares of Globalstar by 320.9% in the 2nd quarter. Penserra Capital Management LLC now owns 486,521 shares of the company's stock valued at $11,456,000 after acquiring an additional 370,943 shares in the last quarter. Magnus Financial Group LLC raised its holdings in shares of Globalstar by 1.7% in the 2nd quarter. Magnus Financial Group LLC now owns 195,745 shares of the company's stock valued at $4,610,000 after acquiring an additional 3,333 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its holdings in shares of Globalstar by 124.0% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 143,039 shares of the company's stock valued at $3,369,000 after acquiring an additional 79,185 shares in the last quarter. Finally, Nordea Investment Management AB purchased a new stake in shares of Globalstar in the 2nd quarter valued at about $3,037,000. Hedge funds and other institutional investors own 18.89% of the company's stock.

Globalstar Trading Up 13.1%

The stock has a market capitalization of $3.60 billion, a P/E ratio of -63.27 and a beta of 0.87. The company has a debt-to-equity ratio of 1.37, a current ratio of 2.27 and a quick ratio of 2.19. The firm's fifty day moving average price is $24.22.

Globalstar Company Profile

Globalstar, Inc provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and data modem services and equipment.