Globalstar (NASDAQ:GSAT) Shares Break Above 50 Day Moving Average - Should You Sell?

Key Points

• Globalstar shares broke above their 50-day moving average, trading as high as $83.13 and last changing hands at $82.88, versus a 50-day average of $82.53.
• Analyst sentiment remains cautious: Globalstar has a consensus “Hold” rating and an average price target of $75.67, below the recent share price. Recent results also showed an EPS loss of $0.23, revenue of $64.77 million, and a 3.5% year-over-year revenue decline.
• Insiders have been selling shares, with executives selling 685,864 shares worth approximately $56.6 million over the past 90 days, although insiders still own 60% of the company.

Globalstar, Inc. (NASDAQ:GSAT - Get Free Report)'s share price crossed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $82.53 and traded as high as $83.13. Globalstar shares last traded at $82.88, with a volume of 702,790 shares trading hands.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on GSAT. Wall Street Zen raised Globalstar to a "sell" rating in a report on Saturday, August 8th. Zacks Research raised Globalstar from a "strong sell" rating to a "hold" rating in a report on Thursday, October 15th. Weiss Ratings lowered Globalstar from a "hold (c)" rating to a "sell (d-)" rating in a research report on Tuesday, September 22nd. Finally, Craig Hallum downgraded shares of Globalstar from a "buy" rating to a "hold" rating and set a $90.00 price target on the stock. in a report on Tuesday, August 18th. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $75.67.

Globalstar Stock Performance

The company has a current ratio of 1.55, a quick ratio of 1.51 and a debt-to-equity ratio of 1.05. The firm's fifty day moving average price is $82.53 and its two-hundred day moving average price is $75.28. The stock has a market capitalization of $10.74 billion, a PE ratio of -162.51 and a beta of 1.45.

Globalstar (NASDAQ:GSAT - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported ($0.23) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.14). The firm had revenue of $64.77 million for the quarter. Globalstar had a negative return on equity of 16.66% and a negative net margin of 22.25%. The company's quarterly revenue was down 3.5% compared to the same quarter last year. As a group, equities research analysts forecast that Globalstar, Inc. will post -0.62 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Rebecca Clary sold 24,100 shares of the firm's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $82.17, for a total transaction of $1,980,297.00. Following the sale, the chief financial officer directly owned 96,540 shares in the company, valued at $7,932,691.80. This trade represents a 19.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Timothy Taylor sold 75,000 shares of the firm's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $83.15, for a total value of $6,236,250.00. Following the sale, the vice president owned 245,244 shares in the company, valued at $20,392,038.60. This trade represents a 23.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 685,864 shares of company stock valued at $56,598,086. Insiders own 60.00% of the company's stock.

Hedge Funds Weigh In On Globalstar

A number of hedge funds have recently bought and sold shares of GSAT. Senvest Management LLC grew its holdings in Globalstar by 27.7% in the first quarter. Senvest Management LLC now owns 868,946 shares of the company's stock valued at $57,715,000 after purchasing an additional 188,325 shares during the period. Sculptor Capital LP acquired a new position in shares of Globalstar during the 1st quarter worth approximately $15,742,000. Dimensional Fund Advisors LP raised its stake in shares of Globalstar by 7.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 231,690 shares of the company's stock worth $15,363,000 after buying an additional 16,009 shares during the period. Bank of New York Mellon Corp acquired a new position in shares of Globalstar during the 2nd quarter worth approximately $13,233,000. Finally, California State Teachers Retirement System lifted its position in shares of Globalstar by 23.9% during the 1st quarter. California State Teachers Retirement System now owns 59,572 shares of the company's stock valued at $3,957,000 after buying an additional 11,488 shares in the last quarter. Hedge funds and other institutional investors own 18.89% of the company's stock.

About Globalstar

Globalstar, Inc provides mobile satellite communications and connectivity services to customers in areas where terrestrial networks are unavailable or unreliable. Its offerings include two-way satellite voice and data communications, satellite-based asset tracking, personal safety and messaging services, and Internet of Things connectivity for commercial, government, and consumer applications.

The company operates a constellation of low-Earth-orbit satellites, ground stations, and related network infrastructure serving users across North and South America, Europe, Australia, and other parts of the world.

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