Stock Traders Buy High Volume of Globalstar Call Options (NASDAQ:GSAT)

Key Points

• Amazon agreed to acquire Globalstar for about $11.57 billion, offering shareholders $90 per share in cash or 0.3210 Amazon shares (capped at $90); the transaction reportedly includes a long-term agreement to power iPhone and Apple Watch satellite features with Apple, boosting Globalstar’s strategic value.
• Traders bought an unusually large volume of call options — 21,104 calls, roughly a 533% jump versus average — as the stock surged to $80.24 on massive turnover, signaling strong bullish/speculative and potential merger-arbitrage positioning.
• Several shareholder law firms have launched investigations into whether the deal price is fair, creating potential legal and execution risk that could delay, alter, or complicate the acquisition.

Globalstar, Inc. (NASDAQ:GSAT - Get Free Report) was the target of some unusual options trading activity on Tuesday. Stock traders bought 21,104 call options on the stock. This is an increase of approximately 533% compared to the average daily volume of 3,335 call options.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Globalstar in a research report on Tuesday, December 16th. They set a "hold" rating and a $62.00 target price on the stock. Zacks Research upgraded Globalstar from a "strong sell" rating to a "hold" rating in a report on Wednesday, April 1st. Weiss Ratings reiterated a "sell (d-)" rating on shares of Globalstar in a research report on Monday, December 29th. Finally, Craig Hallum reiterated a "buy" rating and set a $70.00 price target on shares of Globalstar in a report on Monday, March 2nd. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Globalstar currently has a consensus rating of "Hold" and an average price target of $69.00.

Globalstar News Roundup

Here are the key news stories impacting Globalstar this week:

• Positive Sentiment: Amazon agreed to acquire Globalstar for about $11.57 billion, giving shareholders $90 per share in cash or 0.3210 shares of Amazon (capped at $90). The deal positions Globalstar as a strategic asset for Amazon Leo and is the primary catalyst for the stock’s sharp move higher today. Amazon signs $11.57 billion deal for Globalstar — Reuters
• Positive Sentiment: The transaction reportedly includes a long-term agreement to power iPhone and Apple Watch satellite features, increasing Globalstar’s strategic value and potential recurring revenue from device partners. Amazon and Apple vs. Starlink — GeekWire
• Positive Sentiment: Unusually large call-option activity (21,104 calls, a ~533% jump vs. typical volume) signals strong bullish/speculative interest around the deal and potential arbitrage/merger-related positioning.
• Neutral Sentiment: Trading was temporarily halted earlier for “News pending,” a routine market response to material M&A announcements that can amplify intraday volatility.
• Negative Sentiment: Several shareholder law firms (Ademi LLP, Monteverde & Associates PC, Halper Sadeh LLC) launched investigations into whether Globalstar shareholders are receiving a fair price and whether fiduciary duties were met — these probes could lead to litigation, deal delays, renegotiation or settlements that introduce execution risk. Ademi LLP investigation — PR Newswire
• Negative Sentiment: Additional firm (Monteverde & Associates) announced an investigation into the same transaction, increasing the likelihood of coordinated shareholder challenges. Monteverde investigation — GlobeNewswire
• Negative Sentiment: Halper Sadeh LLC also opened an investigation questioning deal fairness; cumulative legal scrutiny is the main near-term downside risk to closing and to deal terms. Halper Sadeh investigation — BusinessWire

Globalstar Trading Up 10.1%

GSAT traded up $7.35 during trading on Tuesday, hitting $80.24. 9,387,227 shares of the stock were exchanged, compared to its average volume of 932,438. The company has a debt-to-equity ratio of 1.27, a quick ratio of 2.37 and a current ratio of 2.42. The firm has a 50 day simple moving average of $62.51 and a 200 day simple moving average of $58.67. The firm has a market cap of $10.32 billion, a price-to-earnings ratio of -535.62, a P/E/G ratio of 119.44 and a beta of 1.46. Globalstar has a 1 year low of $17.24 and a 1 year high of $81.07.

Globalstar (NASDAQ:GSAT - Get Free Report) last announced its quarterly earnings results on Friday, February 27th. The company reported ($0.11) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.12). Globalstar had a negative net margin of 6.10% and a negative return on equity of 1.02%. The firm had revenue of $71.96 million for the quarter, compared to analysts' expectations of $71.80 million. The business's quarterly revenue was up 17.6% compared to the same quarter last year.

Insider Transactions at Globalstar

In related news, CEO Paul E. Jacobs sold 714 shares of the business's stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $59.56, for a total value of $42,525.84. Following the sale, the chief executive officer directly owned 67,032 shares in the company, valued at approximately $3,992,425.92. The trade was a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Rebecca Clary sold 762 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $57.31, for a total value of $43,670.22. Following the transaction, the chief financial officer owned 110,254 shares of the company's stock, valued at $6,318,656.74. This represents a 0.69% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 4,154 shares of company stock valued at $238,045. 61.00% of the stock is currently owned by insiders.

Institutional Trading of Globalstar

Several hedge funds and other institutional investors have recently bought and sold shares of GSAT. Wealth Enhancement Advisory Services LLC lifted its stake in shares of Globalstar by 1.4% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 18,106 shares of the company's stock worth $1,219,000 after purchasing an additional 248 shares during the last quarter. Clearstead Trust LLC lifted its position in shares of Globalstar by 20.7% during the fourth quarter. Clearstead Trust LLC now owns 2,131 shares of the company's stock valued at $130,000 after buying an additional 366 shares during the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA bought a new stake in shares of Globalstar in the 4th quarter valued at about $26,000. NewEdge Advisors LLC grew its position in shares of Globalstar by 85.1% in the 4th quarter. NewEdge Advisors LLC now owns 935 shares of the company's stock worth $57,000 after buying an additional 430 shares during the last quarter. Finally, Meeder Asset Management Inc. bought a new position in shares of Globalstar during the 4th quarter worth approximately $27,000. Institutional investors own 18.89% of the company's stock.

About Globalstar

Globalstar, Inc is a leading provider of mobile satellite voice and data communications services. Through a network of low Earth orbit (LEO) satellites, the company delivers reliable satellite connectivity to users in remote or underserved regions where terrestrial networks are unavailable or unreliable. Its product portfolio includes satellite phones, two-way satellite data modems and Internet of Things (IoT) devices designed for tracking, monitoring and emergency notification.

Founded in 1991 as a joint venture between Loral and Qualcomm, Globalstar launched its first fleet of 48 satellites between 1998 and 2000.

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