Gogo (NASDAQ:GOGO) Trading Up 14.1% After Better-Than-Expected Earnings

Key Points

• Gogo's stock jumped 14.1% intraday after reporting quarterly EPS of $0.10 versus the $0.08 consensus, even though revenue fell 1.7% year-over-year to $226.3M and missed estimates of $235.0M.
• Director Charles C. Townsend purchased 158,591 shares at about $4.57—boosting his position by 60.97%—underscoring notable insider buying; corporate insiders collectively own 25.78% of the company.
• The company shows high leverage and valuation metrics with a debt-to-equity ratio of 8.24 and a trailing PE of 46.7, while analysts hold a consensus Hold rating and an average price target of $12.25.

Gogo Inc. (NASDAQ:GOGO - Get Free Report)'s stock price was up 14.1% during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $4.77 and last traded at $4.9050. Approximately 1,022,093 shares changed hands during mid-day trading, a decline of 46% from the average daily volume of 1,906,687 shares. The stock had previously closed at $4.30.

The technology company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.02. Gogo had a return on equity of 55.95% and a net margin of 1.42%.The business had revenue of $226.32 million during the quarter, compared to analyst estimates of $234.99 million. During the same quarter in the previous year, the business earned $0.09 earnings per share. The company's revenue for the quarter was down 1.7% compared to the same quarter last year.

Analyst Ratings Changes

Several research analysts have issued reports on GOGO shares. Weiss Ratings restated a "sell (d)" rating on shares of Gogo in a research report on Friday, March 27th. Morgan Stanley set a $8.00 target price on Gogo in a research report on Friday, January 16th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $12.25.

Insider Buying and Selling at Gogo

In related news, Director Charles C. Townsend purchased 158,591 shares of the firm's stock in a transaction dated Thursday, March 12th. The stock was purchased at an average price of $4.57 per share, with a total value of $724,760.87. Following the completion of the purchase, the director owned 418,686 shares of the company's stock, valued at approximately $1,913,395.02. The trade was a 60.97% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Corporate insiders own 25.78% of the company's stock.

Institutional Trading of Gogo

Several institutional investors and hedge funds have recently modified their holdings of the stock. Independent Financial Group LLC bought a new stake in shares of Gogo during the first quarter valued at approximately $210,000. Principal Financial Group Inc. lifted its holdings in Gogo by 2.3% during the first quarter. Principal Financial Group Inc. now owns 379,682 shares of the technology company's stock worth $1,526,000 after buying an additional 8,379 shares during the period. Fifth Third Bancorp lifted its holdings in Gogo by 7,817.6% during the first quarter. Fifth Third Bancorp now owns 17,102 shares of the technology company's stock worth $69,000 after buying an additional 16,886 shares during the period. Hsbc Holdings PLC purchased a new stake in Gogo during the first quarter worth $142,000. Finally, LB Partners LLC lifted its holdings in Gogo by 436.0% during the first quarter. LB Partners LLC now owns 804,034 shares of the technology company's stock worth $3,232,000 after buying an additional 654,034 shares during the period. Institutional investors own 69.60% of the company's stock.

Gogo Stock Performance

The business has a fifty day simple moving average of $4.46 and a two-hundred day simple moving average of $5.42. The company has a debt-to-equity ratio of 8.24, a current ratio of 1.60 and a quick ratio of 1.24. The company has a market cap of $631.57 million, a PE ratio of 46.70 and a beta of 1.06.

About Gogo

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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