Gilat Satellite Networks (NASDAQ:GILT) Reaches New 1-Year Low - Here's What Happened

Key Points

• Gilat Satellite Networks shares hit a new 52-week low, falling to $9.65 during Tuesday trading and closing around $9.85, down 2.3% from the prior close.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $20, despite Zacks Research downgrading the stock to “Hold.”
• The company reported quarterly revenue of $122.66 million and EPS of $0.20; institutional investors own 35.72% of shares, while recent insider activity included sales by two company insiders.

Gilat Satellite Networks Ltd. (NASDAQ:GILT - Get Free Report) shares reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $9.65 and last traded at $9.8450, with a volume of 87175 shares changing hands. The stock had previously closed at $10.12.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on GILT. Zacks Research downgraded shares of Gilat Satellite Networks from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 16th. Weiss Ratings reiterated a "hold (c)" rating on shares of Gilat Satellite Networks in a report on Thursday, June 18th. Finally, Needham & Company LLC restated a "buy" rating and set a $20.00 target price on shares of Gilat Satellite Networks in a research note on Tuesday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Gilat Satellite Networks currently has an average rating of "Moderate Buy" and an average price target of $20.00.

Gilat Satellite Networks Trading Down 2.3%

The company has a market cap of $730.03 million, a price-to-earnings ratio of 22.47 and a beta of 1.05. The firm has a 50-day moving average price of $11.23 and a 200 day moving average price of $14.51.

Gilat Satellite Networks (NASDAQ:GILT - Get Free Report) last posted its quarterly earnings results on Tuesday, June 30th. The communications equipment provider reported $0.20 earnings per share (EPS) for the quarter. Gilat Satellite Networks had a return on equity of 10.12% and a net margin of 6.21%.The business had revenue of $122.66 million for the quarter. Research analysts anticipate that Gilat Satellite Networks Ltd. will post 0.53 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Amir Ofek sold 3,923 shares of the business's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $11.41, for a total transaction of $44,761.43. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Arieh Rohrstock sold 17,568 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $15.23, for a total transaction of $267,560.64. Following the transaction, the insider owned 7,531 shares of the company's stock, valued at $114,697.13. This represents a 69.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.13% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of GILT. Clal Insurance Enterprises Holdings Ltd grew its stake in shares of Gilat Satellite Networks by 33.8% in the fourth quarter. Clal Insurance Enterprises Holdings Ltd now owns 5,556,155 shares of the communications equipment provider's stock worth $71,476,000 after purchasing an additional 1,402,035 shares in the last quarter. Defiance ETFs LLC bought a new stake in shares of Gilat Satellite Networks during the fourth quarter valued at about $13,555,000. AWM Investment Company Inc. bought a new stake in shares of Gilat Satellite Networks during the second quarter valued at about $13,792,000. UBS Group AG lifted its holdings in Gilat Satellite Networks by 613.4% in the third quarter. UBS Group AG now owns 963,547 shares of the communications equipment provider's stock worth $12,545,000 after purchasing an additional 828,489 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Gilat Satellite Networks by 995.8% in the third quarter. Arrowstreet Capital Limited Partnership now owns 907,794 shares of the communications equipment provider's stock worth $11,755,000 after purchasing an additional 824,949 shares during the period. 35.72% of the stock is owned by institutional investors and hedge funds.

Gilat Satellite Networks Company Profile

Gilat Satellite Networks is a leading provider of satellite-based broadband connectivity solutions, specializing in the design, development and deployment of ground segment equipment and network services. The company's core offerings include Very Small Aperture Terminal (VSAT) modems and hub systems, network management software, and end-to-end satellite communication platforms. These technologies enable broadband Internet access, enterprise networking, and cellular backhaul in regions where terrestrial infrastructure is limited or non-existent.

Founded in 1987 and headquartered in Petah Tikva, Israel, Gilat has established a track record of innovation in satellite communications.

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