Gogo (NASDAQ:GOGO) Trading Down 8.5% - What's Next?

Key Points

• Gogo shares fell 8.5% to $4.27 on Friday, with volume of ~262,574 shares (about 86% below the average), and the stock trading beneath its 200-day moving average of $5.39.
• Analysts are mixed: MarketBeat shows a consensus rating of "Hold" with an average price target of $10 (individual targets cited at $8 and $12), while Weiss Ratings recently reaffirmed a "sell."
• Fundamentals are mixed — Gogo beat EPS estimates ($0.10 vs. $0.09) but missed revenue ($226.3M vs. $235.0M), carries a high debt-to-equity ratio (8.24), and has significant insider buying plus ~69.6% institutional ownership driven by large hedge fund purchases.

Gogo Inc. (NASDAQ:GOGO - Get Free Report)'s stock price was down 8.5% on Friday . The company traded as low as $4.17 and last traded at $4.2740. Approximately 262,574 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 1,908,728 shares. The stock had previously closed at $4.67.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Roth Mkm set a $12.00 target price on shares of Gogo in a research note on Thursday. Morgan Stanley set a $8.00 target price on shares of Gogo in a research note on Friday, January 16th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Gogo in a report on Friday, March 27th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $10.00.

Gogo Stock Down 6.3%

The company has a quick ratio of 1.24, a current ratio of 1.60 and a debt-to-equity ratio of 8.24. The company has a market cap of $591.67 million, a price-to-earnings ratio of 43.75 and a beta of 1.06. The stock has a fifty day moving average price of $4.46 and a two-hundred day moving average price of $5.39.

Gogo (NASDAQ:GOGO - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The technology company reported $0.10 EPS for the quarter, topping analysts' consensus estimates of $0.09 by $0.01. Gogo had a return on equity of 55.95% and a net margin of 1.42%.The company had revenue of $226.32 million for the quarter, compared to analysts' expectations of $234.99 million. During the same quarter last year, the business earned $0.09 earnings per share. Gogo's revenue was down 1.7% on a year-over-year basis. As a group, sell-side analysts expect that Gogo Inc. will post 0.42 EPS for the current year.

Insider Activity at Gogo

In related news, Director Charles C. Townsend purchased 158,591 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The shares were bought at an average price of $4.57 per share, for a total transaction of $724,760.87. Following the completion of the transaction, the director owned 418,686 shares of the company's stock, valued at approximately $1,913,395.02. This trade represents a 60.97% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Insiders own 25.78% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of GOGO. Nantahala Capital Management LLC bought a new position in shares of Gogo in the fourth quarter worth $31,654,000. Millennium Management LLC grew its position in Gogo by 774.0% in the fourth quarter. Millennium Management LLC now owns 2,355,573 shares of the technology company's stock valued at $10,977,000 after acquiring an additional 2,086,042 shares during the last quarter. Balyasny Asset Management L.P. bought a new position in Gogo in the fourth quarter valued at about $5,250,000. Two Sigma Investments LP grew its position in Gogo by 512.6% in the third quarter. Two Sigma Investments LP now owns 1,218,005 shares of the technology company's stock valued at $10,463,000 after acquiring an additional 1,019,195 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its position in Gogo by 403.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,137,602 shares of the technology company's stock valued at $5,301,000 after acquiring an additional 911,657 shares during the last quarter. Institutional investors 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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