Gogo (NASDAQ:GOGO) Stock Breaks Below 200 Day Moving Average - Here's Why

Key Points

• Gogo shares fell below their 200-day moving average of $3.49, reaching as low as $2.05 before closing at $2.11 on elevated volume.
• Analyst sentiment is mixed but leans toward “Hold”: one analyst rates the stock Buy, three rate it Hold, and one rates it Sell. The average price target is $8.50.
• Gogo’s latest quarterly results missed expectations, with EPS of $0.03 versus $0.06 expected and revenue of $222.81 million versus $229.35 million; revenue declined 1.4% year over year.

Gogo Inc. (NASDAQ:GOGO - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $3.49 and traded as low as $2.05. Gogo shares last traded at $2.11, with a volume of 1,408,498 shares traded.

Analysts Set New Price Targets

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

Gogo Stock Performance

The stock has a market cap of $285.92 million, a P/E ratio of 211.00 and a beta of 1.22. 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 stock has a 50 day simple moving average of $2.57 and a 200 day simple moving average of $3.49.

Gogo (NASDAQ:GOGO - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The technology company reported $0.03 EPS for the quarter, missing analysts' consensus estimates of $0.06 by ($0.03). The company had revenue of $222.81 million during the quarter, compared to the consensus estimate of $229.35 million. Gogo had a positive return on equity of 22.55% and a negative net margin of 0.09%. The firm's revenue for the quarter was down 1.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.09 EPS. On average, equities analysts expect that Gogo Inc. will post 0.03 earnings per share for the current year.

Hedge Funds Weigh In On Gogo

Several hedge funds and other institutional investors have recently made changes to their positions in GOGO. Caitong International Asset Management Co. Ltd acquired a new position in Gogo during the fourth quarter worth about $27,000. PNC Financial Services Group Inc. boosted its stake in shares of Gogo by 310.7% in the 1st quarter. PNC Financial Services Group Inc. now owns 7,318 shares of the technology company's stock valued at $29,000 after purchasing an additional 5,536 shares in the last quarter. State of Wyoming acquired a new stake in shares of Gogo in the 1st quarter valued at approximately $34,000. Two Sigma Securities LLC acquired a new stake in shares of Gogo in the 2nd quarter valued at approximately $41,000. Finally, Fifth Third Bancorp grew its holdings in shares of Gogo by 7,817.6% during the 1st quarter. Fifth Third Bancorp now owns 17,102 shares of the technology company's stock valued at $69,000 after purchasing an additional 16,886 shares during the last quarter. 69.60% of the stock is currently owned by institutional investors and hedge funds.

About Gogo

Gogo Inc NASDAQ: GOGO provides broadband connectivity and related communications services for the business aviation market. Its offerings are designed to give passengers and flight crews internet access in the air, supporting activities such as web browsing, email, streaming and other connected applications.

The company's portfolio includes air-to-ground connectivity services, onboard Wi-Fi systems, satellite-based connectivity and related hardware, software and support services. Gogo also offers Gogo Galileo, a global broadband service intended to extend high-speed connectivity to business aircraft operating beyond the coverage of traditional air-to-ground networks.

Gogo was founded in 1991 as Aircell and adopted the Gogo brand in 2009.

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