Gogo (NASDAQ:GOGO) Trading Down 5% - Time to Sell?

Key Points

• Gogo Inc. shares fell 5% during mid-day trading, with trading volume significantly down by 89% compared to the average session.
• Analysts have recently adjusted their ratings on Gogo, with Wall Street Zen downgrading the stock from "buy" to "hold," while Roth Capital set a price target of $16.50.
• The company reported a 121.4% increase in revenue year-over-year, with earnings per share beating expectations at $0.13 for the latest quarter.

Shares of Gogo Inc. (NASDAQ:GOGO - Get Free Report) fell 5% during mid-day trading on Friday . The stock traded as low as $9.90 and last traded at $9.84. 194,279 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 1,693,222 shares. The stock had previously closed at $10.36.

Analysts Set New Price Targets

A number of brokerages recently issued reports on GOGO. Wall Street Zen cut Gogo from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Roth Capital set a $16.50 price objective on Gogo and gave the stock a "buy" rating in a report on Wednesday, June 18th. Finally, Morgan Stanley started coverage on Gogo in a report on Thursday, August 14th. They set an "equal weight" rating and a $15.00 price objective on the stock. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $14.83.

Gogo Stock Performance

The firm has a market capitalization of $1.29 billion, a price-to-earnings ratio of 240.88 and a beta of 0.78. The company has a quick ratio of 1.32, a current ratio of 1.71 and a debt-to-equity ratio of 8.10. The company has a 50-day moving average price of $13.51 and a 200-day moving average price of $10.93.

Gogo (NASDAQ:GOGO - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The technology company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.12 by $0.01. The company had revenue of $226.04 million for the quarter, compared to analysts' expectations of $220.12 million. Gogo had a return on equity of 88.04% and a net margin of 1.05%.The firm's revenue was up 121.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.01 earnings per share. Gogo has set its FY 2025 guidance at EPS. As a group, equities research analysts forecast that Gogo Inc. will post 0.41 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Michael Begler sold 107,136 shares of Gogo stock in a transaction on Wednesday, June 18th. The shares were sold at an average price of $15.00, for a total transaction 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Christopher John Moore acquired 10,000 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was bought at an average cost of $12.11 per share, for a total transaction of $121,100.00. Following the completion of the transaction, the chief executive officer directly owned 10,000 shares in the company, valued at $121,100. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. 25.78% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Gogo

Several institutional investors and hedge funds have recently added to or reduced their stakes in GOGO. Nuveen Asset Management LLC lifted its stake in shares of Gogo by 0.6% in the fourth quarter. Nuveen Asset Management LLC now owns 223,317 shares of the technology company's stock valued at $1,807,000 after buying an additional 1,373 shares in the last quarter. ProShare Advisors LLC grew its stake in Gogo by 44.7% in the 4th quarter. ProShare Advisors LLC now owns 19,410 shares of the technology company's stock worth $157,000 after buying an additional 5,996 shares in the last quarter. Ancora Advisors LLC purchased a new position in Gogo in the 1st quarter worth approximately $458,000. Asset Management One Co. Ltd. bought a new stake in Gogo in the first quarter worth $189,000. Finally, GAMMA Investing LLC raised its holdings in Gogo by 532.9% during the 1st 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 during the last quarter. 69.60% of the stock is currently owned by institutional investors and hedge funds.

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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