Gogo (NASDAQ:GOGO) Hits New 52-Week High - Time to Buy?

Key Points

• Gogo Inc.'s stock reached a new 52-week high of $16.61 during trading, closing at $16.51, up from $16.26.
• Analysts have expressed positive sentiment, with Wall Street Zen upgrading the stock to a "buy" and setting a consensus price target of $12.63, suggesting potential upward momentum.
• Insider selling has occurred, with significant transactions including a 67.06% decrease in ownership by a director who sold 8.5 million shares at an average price of $11.00.

Gogo Inc. (NASDAQ:GOGO - Get Free Report) shares hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $16.61 and last traded at $16.51, with a volume of 100840 shares traded. The stock had previously closed at $16.26.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on GOGO. Roth Capital set a $16.50 price objective on shares of Gogo and gave the stock a "buy" rating in a research note on Wednesday, June 18th. Wall Street Zen raised shares of Gogo from a "hold" rating to a "buy" rating in a research note on Thursday, May 22nd. Two equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $12.63.

Gogo Stock Performance

The firm's 50-day moving average price is $14.01 and its two-hundred day moving average price is $10.20. The firm has a market capitalization of $2.00 billion, a PE ratio of -378.50 and a beta of 1.11. The company has a quick ratio of 1.36, a current ratio of 1.84 and a debt-to-equity ratio of 10.03.

Gogo (NASDAQ:GOGO - Get Free Report) last released its earnings results on Friday, May 9th. The technology company reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.13. The business had revenue of $230.31 million for the quarter, compared to the consensus estimate of $214.93 million. Gogo had a negative net margin of 0.82% and a positive return on equity of 95.01%. The firm's quarterly revenue was up 120.8% compared to the same quarter last year. During the same period last year, the firm posted $0.23 earnings per share. As a group, research analysts predict that Gogo Inc. will post 0.41 earnings per share for the current fiscal year.

Insider Activity at Gogo

In other news, EVP Michael Begler sold 107,136 shares of Gogo stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $15.00, for a total value of $1,607,040.00. Following the transaction, the executive vice president directly owned 14,454 shares of the company's stock, valued at $216,810. This trade represents a 88.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director (Equity) Holdings Lp Silver sold 8,500,000 shares of the firm's stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $11.00, for a total transaction of $93,500,000.00. Following the sale, the director owned 4,174,482 shares of the company's stock, valued at approximately $45,919,302. This represents a 67.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 25.78% of the company's stock.

Institutional Trading of Gogo

Institutional investors have recently made changes to their positions in the stock. GAMMA Investing LLC boosted its holdings in shares of Gogo by 532.9% during the first quarter. GAMMA Investing LLC now owns 3,595 shares of the technology company's stock worth $31,000 after purchasing an additional 3,027 shares during the period. Lazard Asset Management LLC acquired a new stake in shares of Gogo during the fourth quarter worth approximately $43,000. State of Wyoming acquired a new stake in shares of Gogo during the fourth quarter worth approximately $57,000. USA Financial Formulas acquired a new stake in shares of Gogo during the second quarter worth approximately $76,000. Finally, CWM LLC boosted its holdings in shares of Gogo by 127.0% during the second quarter. CWM LLC now owns 6,626 shares of the technology company's stock worth $97,000 after purchasing an additional 3,707 shares during the period. 69.60% of the stock is currently owned by institutional investors and hedge funds.

About Gogo

Gogo Inc, together with its subsidiaries, provides broadband connectivity services to the aviation industry in the United States and internationally. The company's product platform includes networks, antennas, and airborne equipment and software. It offers in-flight systems; in-flight services; aviation partner support; and engineering, design, and development services, as well as production operations functions.