Gogo (NASDAQ:GOGO) Sees Strong Trading Volume - Still a Buy?

Key Points

• Gogo shares surged amid exceptionally heavy trading: 21.66 million shares traded, about 1,005% above average volume, and the stock was quoted at $3.739 versus a prior close of $2.27.
• Analyst views are mixed, but the consensus rating is Hold with an average price target of $8.50; ratings include one Buy, three Holds, and one Sell.
• Gogo’s latest quarter fell short of expectations, reporting a $0.02-per-share loss versus a forecast loss of $0.01, while revenue declined 4.6% year over year.

Shares of Gogo Inc. (NASDAQ:GOGO - Get Free Report) saw strong trading volume on Friday. 21,659,993 shares traded hands during mid-day trading, an increase of 1,005% from the average daily volume of 1,961,060 shares. The stock last traded at $3.7390 and had previously closed at $2.27.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. Roth Capital reiterated a "buy" rating on shares of Gogo in a research report on Friday, August 7th. Wall Street Zen lowered shares of Gogo from a "hold" rating to a "sell" rating in a research note on Saturday, October 24th. Zacks Research upgraded shares of Gogo from a "strong sell" rating to a "hold" rating in a report on Monday, October 5th. Finally, Weiss Ratings downgraded shares of Gogo from a "hold (c-)" rating to a "sell (d)" rating in a research note on Monday, August 17th. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $8.50.

Gogo Trading Up 69.1%

The stock has a market capitalization of $520.09 million, a P/E ratio of 384.50 and a beta of 1.26. The company has a current ratio of 1.73, a quick ratio of 1.21 and a debt-to-equity ratio of 6.74. The company has a 50-day moving average price of $2.37 and a 200 day moving average price of $3.62.

Gogo (NASDAQ:GOGO - Get Free Report) last issued its quarterly earnings data on Friday, November 6th. The technology company reported ($0.02) earnings per share for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.01). Gogo had a positive return on equity of 22.55% and a negative net margin of 0.09%. During the same period in the previous year, the firm earned ($0.01) EPS. The business's quarterly revenue was down 4.6% compared to the same quarter last year. On average, research analysts forecast that Gogo Inc. will post 0.01 earnings per share for the current fiscal year.

Institutional Trading of Gogo

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Nantahala Capital Management LLC purchased a new position in Gogo in the 2nd quarter worth $26,962,966. BlackRock Inc. purchased a new stake in Gogo during the 2nd quarter valued at about $18,984,000. Bank of America Corp DE purchased a new stake in Gogo during the 2nd quarter valued at about $16,029,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Gogo in the second quarter valued at about $2,193,000. Finally, Healthcare of Ontario Pension Plan Trust Fund raised its stake in shares of Gogo by 199.4% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 486,820 shares of the technology company's stock worth $1,957,000 after purchasing an additional 324,237 shares during the last quarter. Hedge funds and other institutional investors own 69.60% of the company's stock.

Gogo Company Profile

Gogo Inc is an aviation connectivity and broadband services company that provides internet access, entertainment, and communications solutions for business and commercial aircraft. Its offerings are designed to help passengers and flight crews stay connected while in the air through a combination of air-to-ground and satellite-based technologies.

Gogo's business aviation portfolio includes the AVANCE connectivity platform, which supports in-flight Wi-Fi and related services, as well as equipment, software, and network management solutions for private and business aircraft.

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