Gogo (NASDAQ:GOGO) Stock Price Down 12.7% - Time to Sell?

Key Points

• Gogo Inc. shares experienced a significant drop of 12.7% in mid-day trading, closing around $13.36 after hitting a low of $13.77.
• Despite the decline, analysts maintain a Moderate Buy rating on Gogo, with upgrades and a price target set at $16.50 by Roth Capital.
• Insider trading activity includes substantial sales by executives, with one EVP selling 107,136 shares for over $1.6 million, indicating a potential concern among leadership regarding the stock's future.

Gogo Inc. (NASDAQ:GOGO - Get Free Report) shares were down 12.7% during mid-day trading on Thursday . The company traded as low as $13.77 and last traded at $13.36. Approximately 354,576 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 1,663,888 shares. The stock had previously closed at $15.31.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on GOGO. Wall Street Zen upgraded Gogo from a "hold" rating to a "buy" rating in a report on Thursday, May 22nd. Roth Capital set a $16.50 price target on Gogo and gave the company a "buy" rating in a research report on Wednesday, June 18th. Two research analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $12.63.

Gogo Trading Down 20.2%

The company has a debt-to-equity ratio of 10.03, a current ratio of 1.84 and a quick ratio of 1.36. The firm has a market capitalization of $1.61 billion, a PE ratio of -305.53 and a beta of 1.11. The business's 50-day moving average price is $14.29 and its 200-day moving average price is $10.37.

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

Insider Buying and Selling

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

Institutional Trading of Gogo

Several institutional investors and hedge funds have recently made changes to their positions in GOGO. GAMMA Investing LLC grew its stake in shares of Gogo by 532.9% in the first quarter. GAMMA Investing LLC now owns 3,595 shares of the technology company's stock valued at $31,000 after buying an additional 3,027 shares in the last quarter. Lazard Asset Management LLC bought a new stake in shares of Gogo in the 4th quarter worth approximately $43,000. State of Wyoming bought a new stake in shares of Gogo in the 4th quarter worth approximately $57,000. USA Financial Formulas acquired a new stake in Gogo in the second quarter worth about $76,000. Finally, CWM LLC raised its stake in shares of Gogo by 127.0% in the 2nd quarter. CWM LLC now owns 6,626 shares of the technology company's stock worth $97,000 after buying an additional 3,707 shares in the last quarter. 69.60% of the stock is currently owned by hedge funds and other institutional investors.

Gogo Company Profile

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.

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