Viasat (NASDAQ:VSAT) Shares Gap Up - What's Next?

Key Points

• Viasat shares jumped: The stock opened at $70.78 versus a prior close of $67.41 and last traded around $72.82, while its average analyst price target stood at $90.67.
• Analyst sentiment was mixed but generally positive: Viasat had an overall “Moderate Buy” rating, including an Oppenheimer “Outperform” rating with a $140 target and a Needham “Buy” rating with a $105 target, despite some sell recommendations.
• Financial results and ownership trends were mixed: Quarterly EPS of $0.17 beat estimates, but revenue fell 1.2% year over year and missed forecasts; meanwhile, insiders sold nearly $19.7 million of stock while institutional ownership reached 86.05%.

Viasat Inc. (NASDAQ:VSAT - Get Free Report) gapped up before the market opened on Friday. The stock had previously closed at $67.41, but opened at $70.78. Viasat shares last traded at $72.8220, with a volume of 376,390 shares.

Wall Street Analysts Forecast Growth

VSAT has been the subject of several recent analyst reports. Weiss Ratings restated a "sell (d-)" rating on shares of Viasat in a research report on Friday, July 17th. Oppenheimer initiated coverage on shares of Viasat in a research note on Monday, June 29th. They issued an "outperform" rating and a $140.00 price target for the company. Wall Street Zen downgraded shares of Viasat from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Needham & Company LLC lifted their price target on shares of Viasat from $90.00 to $105.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Finally, Zacks Research upgraded Viasat from a "strong sell" rating to a "hold" rating in a report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Viasat presently has an average rating of "Moderate Buy" and an average price target of $90.67.

Viasat Price Performance

The company has a debt-to-equity ratio of 1.23, a quick ratio of 1.52 and a current ratio of 1.68. The stock has a market cap of $10.19 billion, a PE ratio of -307.11 and a beta of 1.76. The stock's 50-day moving average is $74.89 and its two-hundred day moving average is $69.59.

Viasat (NASDAQ:VSAT - Get Free Report) last announced its earnings results on Tuesday, August 4th. The communications equipment provider reported $0.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.10 by $0.07. Viasat had a positive return on equity of 1.44% and a negative net margin of 0.64%.The company had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.20 billion. During the same quarter in the previous year, the company earned $0.17 earnings per share. The firm's quarterly revenue was down 1.2% compared to the same quarter last year. On average, equities analysts predict that Viasat Inc. will post -0.38 earnings per share for the current year.

Insider Activity

In related news, Director Theresa Wise sold 2,500 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $84.69, for a total transaction of $211,725.00. Following the transaction, the director owned 11,000 shares of the company's stock, valued at approximately $931,590. This represents a 18.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Richard Baldridge sold 223,542 shares of Viasat stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $80.62, for a total value of $18,021,956.04. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 245,763 shares of company stock worth $19,677,727 in the last quarter. Insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Viasat

Several large investors have recently added to or reduced their stakes in VSAT. BlackRock Inc. purchased a new position in Viasat in the second quarter valued at $1,863,374,000. Bank of America Corp DE purchased a new stake in Viasat during the 2nd quarter worth about $127,283,000. Tema ETFs LLC raised its position in Viasat by 229,857.1% in the 2nd quarter. Tema ETFs LLC now owns 965,820 shares of the communications equipment provider's stock valued at $86,740,000 after purchasing an additional 965,400 shares in the last quarter. Tidal Investments LLC raised its position in Viasat by 8,261.7% in the 2nd quarter. Tidal Investments LLC now owns 976,646 shares of the communications equipment provider's stock valued at $87,713,000 after purchasing an additional 964,966 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Viasat in the 2nd quarter valued at about $80,124,000. 86.05% of the stock is owned by hedge funds and other institutional investors.

Viasat Company Profile

Viasat, Inc is a communications company that provides satellite connectivity and related services to commercial, government and consumer customers. Its offerings include broadband internet, in-flight connectivity, maritime communications, enterprise networking and secure communications for government and defense applications.

The company operates a fleet of communications satellites and develops supporting ground infrastructure, network services and connectivity equipment. Viasat serves customers across North America, Europe, the Middle East, Africa, Asia-Pacific and other international markets, including airlines, shipping companies, businesses, government agencies and households in areas where terrestrial broadband is limited.

Viasat was founded in 1986 and is headquartered in Carlsbad, California.

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