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

Key Points

• Investors purchased an unusually large volume of call options—40,110 call options, a 708% increase versus the typical 4,964—signaling heavy bullish option activity in GSAT.
• Shares slipped 1.5% to $62.58 on below-average stock volume; Globalstar posted a slight quarterly EPS beat but remains unprofitable with negative net margin and ROE and a market cap of $7.94 billion.
• Top insiders (including the General Counsel and CFO) sold shares recently—totaling 52,663 shares over 90 days—while analysts carry a consensus "Hold" rating with a $68.50 price target.

Globalstar, Inc. (NASDAQ:GSAT - Get Free Report) was the recipient of unusually large options trading on Thursday. Investors acquired 40,110 call options on the stock. This is an increase of 708% compared to the typical volume of 4,964 call options.

Globalstar Stock Down 1.5%

Shares of GSAT traded down $0.95 on Thursday, hitting $62.58. The company's stock had a trading volume of 328,174 shares, compared to its average volume of 664,564. The firm's fifty day moving average price is $62.42 and its 200-day moving average price is $43.35. Globalstar has a fifty-two week low of $17.24 and a fifty-two week high of $74.88. The company has a quick ratio of 2.46, a current ratio of 2.53 and a debt-to-equity ratio of 1.33. The firm has a market capitalization of $7.94 billion, a price-to-earnings ratio of -136.04 and a beta of 1.10.

Globalstar (NASDAQ:GSAT - Get Free Report) last announced its quarterly earnings results on Thursday, November 6th. The company reported ($0.01) earnings per share for the quarter, beating analysts' consensus estimates of ($0.03) by $0.02. Globalstar had a negative net margin of 21.07% and a negative return on equity of 3.67%. The firm had revenue of $73.85 million for the quarter. During the same period in the previous year, the firm posted $0.06 EPS. The business's quarterly revenue was up 2.1% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

GSAT has been the topic of a number of analyst reports. Deutsche Bank Aktiengesellschaft assumed coverage on Globalstar in a research note on Tuesday, December 16th. They issued a "hold" rating and a $62.00 price target on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Globalstar in a report on Monday, December 29th. Zacks Research lowered Globalstar from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 7th. Finally, B. Riley boosted their target price on Globalstar from $60.00 to $75.00 and gave the stock a "buy" rating in a research report on Monday, November 10th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $68.50.

Insider Transactions at Globalstar

In other news, General Counsel L Barbee Iv Ponder sold 9,790 shares of the firm's stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $58.32, for a total value of $570,952.80. Following the transaction, the general counsel owned 135,658 shares of the company's stock, valued at approximately $7,911,574.56. This trade represents a 6.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Rebecca Clary sold 16,316 shares of the business's stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $58.32, for a total transaction of $951,549.12. Following the sale, the chief financial officer directly owned 98,374 shares of the company's stock, valued at approximately $5,737,171.68. This trade represents a 14.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 52,663 shares of company stock worth $3,061,073. Corporate insiders own 61.00% of the company's stock.

Institutional Trading of Globalstar

Several hedge funds and other institutional investors have recently modified their holdings of GSAT. Rialto Wealth Management LLC lifted its holdings in shares of Globalstar by 519.9% in the fourth quarter. Rialto Wealth Management LLC now owns 1,246 shares of the company's stock valued at $76,000 after purchasing an additional 1,045 shares in the last quarter. SG Americas Securities LLC raised its position in Globalstar by 45.4% in the 4th quarter. SG Americas Securities LLC now owns 28,486 shares of the company's stock valued at $1,739,000 after buying an additional 8,897 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its stake in Globalstar by 1.4% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 18,106 shares of the company's stock valued at $1,219,000 after acquiring an additional 248 shares in the last quarter. Parisi Gray Wealth Management acquired a new position in Globalstar during the 4th quarter worth approximately $203,000. Finally, Magnus Financial Group LLC boosted its position in Globalstar by 17.0% during the 4th quarter. Magnus Financial Group LLC now owns 229,078 shares of the company's stock worth $13,983,000 after acquiring an additional 33,333 shares during the last quarter. Institutional investors and hedge funds own 18.89% of the company's stock.

Globalstar Company Profile

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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