Gogo Inc. (NASDAQ:GOGO) Given Average Rating of "Hold" by Analysts

Key Points

• Analysts rate Gogo “Hold” on average: Three analysts issued hold ratings, while one rated the stock a sell and one a buy. The average 12-month price target is $8.50, though recent coverage included downgrades from Zacks Research and Wall Street Zen.
• Gogo missed quarterly expectations: The company reported earnings of $0.03 per share versus the $0.06 consensus estimate, while revenue of $222.81 million fell short of forecasts and declined 1.4% year over year.
• Shares remain near their 52-week low: Gogo opened at $3.19, compared with a 52-week range of $3.02 to $13.13, and carries substantial leverage with a debt-to-equity ratio of 6.74. Institutional investors and hedge funds own approximately 69.6% of the stock.

Gogo Inc. (NASDAQ:GOGO - Get Free Report) has been assigned an average rating of "Hold" from the five ratings firms that are currently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating on the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $8.50.

GOGO has been the subject of several research reports. Zacks Research lowered Gogo from a "hold" rating to a "strong sell" rating in a research note on Friday. Morgan Stanley decreased their price target on shares of Gogo from $8.00 to $7.00 and set an "equal weight" rating for the company in a report on Thursday, May 21st. Wall Street Zen lowered Gogo from a "hold" rating to a "sell" rating in a research report on Saturday. Weiss Ratings upgraded shares of Gogo from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, August 3rd. Finally, Roth Capital restated a "buy" rating on shares of Gogo in a report on Friday.

Gogo Price Performance

GOGO opened at $3.19 on Tuesday. The firm has a market cap of $431.42 million, a price-to-earnings ratio of 319.00 and a beta of 1.13. The company's 50-day moving average price is $3.66 and its 200 day moving average price is $4.14. Gogo has a fifty-two week low of $3.02 and a fifty-two week high of $13.13. The company has a quick ratio of 1.21, a current ratio of 1.73 and a debt-to-equity ratio of 6.74.

Gogo (NASDAQ:GOGO - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The technology company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.03). The business had revenue of $222.81 million for the quarter, compared to analyst estimates of $229.35 million. Gogo had a positive return on equity of 22.55% and a negative net margin of 0.09%.The business's quarterly revenue was down 1.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.09 earnings per share. As a group, sell-side analysts expect that Gogo will post 0.14 earnings per share for the current year.

Hedge Funds Weigh In On Gogo

Several large investors have recently added to or reduced their stakes in the company. Nantahala Capital Management LLC bought a new stake in shares of Gogo in the 4th quarter worth approximately $31,654,000. Vanguard Group Inc. raised its stake in shares of Gogo by 6.3% in the third quarter. Vanguard Group Inc. now owns 6,651,058 shares of the technology company's stock valued at $57,133,000 after purchasing an additional 396,236 shares in the last quarter. BlackRock Inc. acquired a new position in shares of Gogo in the second quarter valued at $18,984,000. Bank of America Corp DE lifted its position in Gogo by 244.1% in the first quarter. Bank of America Corp DE now owns 5,340,615 shares of the technology company's stock worth $21,469,000 after purchasing an additional 3,788,659 shares during the period. Finally, State Street Corp lifted its position in Gogo by 7.0% in the fourth quarter. State Street Corp now owns 3,136,833 shares of the technology company's stock worth $14,618,000 after purchasing an additional 204,296 shares during the period. Institutional investors and hedge funds own 69.60% of the company's stock.

Gogo Company Profile

Gogo Inc is a leading provider of in-flight connectivity and entertainment solutions for commercial and business aviation. The company specializes in delivering broadband internet, voice and text services, and streaming entertainment to passengers at 35,000 feet. Gogo's offerings include both air-to-ground (ATG) networks and satellite-based connectivity, enabling reliable in-flight internet access across a range of aircraft types.

Gogo's ATG network spans the United States and portions of Canada, using ground towers to transmit data signals directly to equipped aircraft.

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