Gogo (NASDAQ:GOGO) Stock Crosses Below Fifty Day Moving Average - Here's What Happened

Key Points

• Gogo shares fell below their 50-day moving average, trading as low as $2.35 and closing at $2.36, down 6.7%. The stock’s 200-day moving average stood at $3.67.
• Analyst sentiment is mixed but leans toward “Hold,” with one Buy, three Hold, and one Sell rating; 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 forecast. Institutional investors own 69.6% of the company, with several major funds recently building positions.

Gogo Inc. (NASDAQ:GOGO - Get Free Report)'s share price passed below its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $2.40 and traded as low as $2.35. Gogo shares last traded at $2.36, with a volume of 1,244,327 shares traded.

Wall Street Analyst Weigh In

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

Gogo Trading Down 6.7%

The company has a debt-to-equity ratio of 6.74, a quick ratio of 1.21 and a current ratio of 1.73. The company's 50-day moving average price is $2.40 and its 200-day moving average price is $3.67. The firm has a market capitalization of $319.80 million, a PE ratio of 236.00 and a beta of 1.22.

Gogo (NASDAQ:GOGO - Get Free Report) last posted its earnings results on Thursday, August 6th. The technology company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.06 by ($0.03). Gogo had a negative net margin of 0.09% and a positive return on equity of 22.55%. The business had revenue of $222.81 million during the quarter, compared to analysts' expectations of $229.35 million. During the same period last year, the company earned $0.09 EPS. The business's quarterly revenue was down 1.4% compared to the same quarter last year. On average, sell-side analysts expect that Gogo Inc. will post 0.01 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Nantahala Capital Management LLC acquired a new position in Gogo in the second quarter valued at $26,962,966. BlackRock Inc. purchased a new position in shares of Gogo during the second quarter worth about $18,984,000. Bank of America Corp DE increased its position in shares of Gogo by 244.1% during the first quarter. Bank of America Corp DE now owns 5,340,615 shares of the technology company's stock worth $21,469,000 after purchasing an additional 3,788,659 shares in the last quarter. Algert Global LLC increased its position in shares of Gogo by 27.9% during the second quarter. Algert Global LLC now owns 1,211,770 shares of the technology company's stock worth $3,756,000 after purchasing an additional 264,135 shares in the last quarter. Finally, Renaissance Technologies LLC increased its position in shares of Gogo by 31.4% during the first quarter. Renaissance Technologies LLC now owns 966,674 shares of the technology company's stock worth $3,886,000 after purchasing an additional 230,800 shares in the last quarter. Hedge funds and other institutional investors own 69.60% of the company's stock.

About Gogo

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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