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

Key Points

• Globalstar, Inc. (NASDAQ:GSAT) experienced a significant surge in options trading, with 34,061 call options purchased, marking a 896% increase from its average volume of 3,421 call options.
• The company's stock rose by 1.7% to $44.79, with a trading volume of 290,598 shares during the day.
• Insider transactions revealed that CEO Paul E. Jacobs sold 53,479 shares, resulting in a 47.59% decrease in his ownership stake.

Globalstar, Inc. (NASDAQ:GSAT - Get Free Report) was the recipient of unusually large options trading activity on Friday. Stock traders acquired 34,061 call options on the stock. This is an increase of approximately 896% compared to the average volume of 3,421 call options.

Globalstar Trading Up 1.7%

Shares of GSAT traded up $0.73 during mid-day trading on Friday, hitting $44.79. The company's stock had a trading volume of 290,598 shares, compared to its average volume of 848,156. The company has a quick ratio of 2.72, a current ratio of 2.81 and a debt-to-equity ratio of 1.30. The company has a market cap of $5.67 billion, a price-to-earnings ratio of -99.53 and a beta of 0.99. The company has a 50-day moving average price of $35.47. Globalstar has a 52-week low of $15.15 and a 52-week high of $47.44.

Globalstar (NASDAQ:GSAT - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported $0.13 EPS for the quarter, topping the consensus estimate of ($0.09) by $0.22. The firm had revenue of $67.15 million during the quarter. Globalstar had a negative net margin of 17.80% and a negative return on equity of 1.17%. Globalstar has set its FY 2025 guidance at EPS.

Insider Transactions at Globalstar

In other news, CEO Paul E. Jacobs sold 53,479 shares of the company's stock in a transaction on Thursday, September 25th. The shares were sold at an average price of $34.95, for a total value of $1,869,091.05. Following the transaction, the chief executive officer owned 58,895 shares of the company's stock, valued at approximately $2,058,380.25. This represents a 47.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Rebecca Clary sold 5,359 shares of the company's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $29.75, for a total transaction of $159,430.25. Following the completion of the transaction, the chief financial officer directly owned 107,761 shares in the company, valued at approximately $3,205,889.75. The trade was a 4.74% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 117,938 shares of company stock valued at $3,950,670. 61.00% of the stock is currently owned by company insiders.

Institutional Trading of Globalstar

Institutional investors have recently modified their holdings of the stock. Fortitude Family Office LLC acquired a new stake in shares of Globalstar in the third quarter valued at about $37,000. Dakota Community Bank & Trust NA purchased a new position in shares of Globalstar during the 3rd quarter worth approximately $46,000. CWM LLC boosted its position in shares of Globalstar by 100.6% during the 3rd quarter. CWM LLC now owns 1,324 shares of the company's stock worth $48,000 after purchasing an additional 664 shares during the period. MRP Capital Investments LLC acquired a new position in shares of Globalstar in the second quarter valued at approximately $64,000. Finally, Osaic Holdings Inc. grew its holdings in shares of Globalstar by 640.4% in the second quarter. Osaic Holdings Inc. now owns 3,302 shares of the company's stock valued at $78,000 after purchasing an additional 2,856 shares in the last quarter. Institutional investors and hedge funds own 18.89% of the company's stock.

Analyst Ratings Changes

Several analysts have issued reports on GSAT shares. Weiss Ratings restated a "sell (d-)" rating on shares of Globalstar in a research report on Wednesday, October 8th. Zacks Research cut shares of Globalstar from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 7th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Reduce".

Globalstar Company Profile

Globalstar, Inc provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and data modem services and equipment.

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