Gogo Target of Unusually Large Options Trading (NASDAQ:GOGO)

Key Points

• Gogo Inc. experienced an unusual surge in trading activity, with a 539% increase in put options, totaling 8,694 contracts compared to an average of 1,361.
• The company's stock rose by 2.7% to $9.58, although the trading volume was significantly below its average.
• Gogo's recent quarterly earnings reported a 121.4% increase in revenue year-over-year, with an EPS of $0.13, exceeding analysts’ expectations.

Gogo Inc. (NASDAQ:GOGO - Get Free Report) was the target of some unusual options trading on Thursday. Investors bought 8,694 put options on the stock. This is an increase of approximately 539% compared to the average volume of 1,361 put options.

Gogo Stock Up 2.7%

GOGO stock traded up $0.25 during mid-day trading on Thursday, reaching $9.58. The company had a trading volume of 466,990 shares, compared to its average volume of 1,733,738. The company has a debt-to-equity ratio of 8.10, a quick ratio of 1.32 and a current ratio of 1.71. The company has a market capitalization of $1.28 billion, a price-to-earnings ratio of 239.38 and a beta of 1.07. The firm has a fifty day simple moving average of $9.92 and a 200 day simple moving average of $11.22. Gogo has a fifty-two week low of $6.20 and a fifty-two week high of $16.82.

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 analysts' consensus estimates of $0.12 by $0.01. The company had revenue of $226.04 million for the quarter, compared to analyst estimates of $220.12 million. Gogo had a return on equity of 88.04% and a net margin of 1.05%.Gogo's revenue for the quarter was up 121.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.01 EPS. Gogo has set its FY 2025 guidance at EPS. Analysts forecast that Gogo will post 0.41 earnings per share for the current fiscal year.

Insider Activity at Gogo

In other Gogo news, CEO Christopher John Moore purchased 10,000 shares of the firm's stock in a transaction dated Friday, August 8th. The shares were acquired at an average price of $12.11 per share, with a total value of $121,100.00. Following the purchase, the chief executive officer directly owned 10,000 shares in the company, valued at approximately $121,100. This trade represents a ∞ increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. 25.78% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Gogo

A number of hedge funds have recently bought and sold shares of GOGO. Fortitude Family Office LLC purchased a new position in shares of Gogo in the 3rd quarter valued at about $30,000. GAMMA Investing LLC boosted its holdings in 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 purchasing an additional 3,027 shares in the last quarter. USA Financial Formulas acquired a new position in Gogo in the second quarter valued at approximately $76,000. CWM LLC boosted its holdings in Gogo by 127.0% in the second quarter. CWM LLC now owns 6,626 shares of the technology company's stock valued at $97,000 after purchasing an additional 3,707 shares in the last quarter. Finally, Tower Research Capital LLC TRC boosted its holdings in Gogo by 300.1% in the second quarter. Tower Research Capital LLC TRC now owns 8,163 shares of the technology company's stock valued at $120,000 after purchasing an additional 6,123 shares in the last quarter. Institutional investors and hedge funds own 69.60% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Weiss Ratings reissued a "sell (d+)" rating on shares of Gogo in a research note on Wednesday, October 8th. Wall Street Zen lowered Gogo from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Finally, Morgan Stanley assumed coverage on Gogo in a research note on Thursday, August 14th. They set an "equal weight" rating and a $15.00 target price on the stock. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Gogo presently has an average rating of "Hold" and an average price target of $14.83.

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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