Wall Street Zen Upgrades Globalstar (NASDAQ:GSAT) to "Sell"

Key Points

• Wall Street Zen upgraded Globalstar to a “Sell” rating, while the broader analyst consensus remains “Hold,” with two Buy ratings and four Hold ratings and an average price target of $69.
• Globalstar shares opened at $83.40, near their 12-month high of $84.85, despite reporting a quarterly loss of $0.23 per share that missed estimates by $0.14 and revenue declining 3.5% year over year.
• CFO Rebecca Clary sold 920 shares under a pre-arranged trading plan, while institutional ownership stands at 18.89% and several major funds recently increased their positions.

Globalstar (NASDAQ:GSAT - Get Free Report) was upgraded by stock analysts at Wall Street Zen to a "sell" rating in a report released on Saturday.

A number of other equities analysts also recently issued reports on the company. Zacks Research upgraded Globalstar from a "strong sell" rating to a "hold" rating in a research note on Tuesday, July 7th. Weiss Ratings upgraded Globalstar from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, June 5th. Finally, Clear Str cut Globalstar from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 15th. Two equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Globalstar presently has a consensus rating of "Hold" and an average price target of $69.00.

Globalstar Stock Up 0.2%

Shares of Globalstar stock opened at $83.40 on Friday. The company has a market cap of $10.74 billion, a price-to-earnings ratio of -163.53 and a beta of 1.58. The company's 50 day moving average is $80.74 and its 200 day moving average is $73.25. Globalstar has a twelve month low of $24.37 and a twelve month high of $84.85. The company has a quick ratio of 1.56, a current ratio of 1.60 and a debt-to-equity ratio of 1.26.

Globalstar (NASDAQ:GSAT - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($0.23) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.14). The company had revenue of $64.77 million during the quarter. Globalstar had a negative return on equity of 15.93% and a negative net margin of 22.25%.The firm's quarterly revenue was down 3.5% on a year-over-year basis. Research analysts anticipate that Globalstar will post -0.38 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Rebecca Clary sold 920 shares of Globalstar stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $81.75, for a total transaction of $75,210.00. Following the transaction, the chief financial officer owned 120,278 shares in the company, valued at $9,832,726.50. This trade represents a 0.76% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 60.00% of the company's stock.

Hedge Funds Weigh In On Globalstar

A number of institutional investors have recently bought and sold shares of GSAT. Ashford Capital Management Inc. lifted its position in Globalstar by 3.8% during the third quarter. Ashford Capital Management Inc. now owns 1,409,321 shares of the company's stock valued at $51,285,000 after purchasing an additional 51,703 shares in the last quarter. State Street Corp increased its position in Globalstar by 2.4% in the fourth quarter. State Street Corp now owns 1,343,869 shares of the company's stock worth $82,030,000 after buying an additional 31,977 shares in the last quarter. Geode Capital Management LLC increased its position in Globalstar by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 1,283,093 shares of the company's stock worth $78,331,000 after buying an additional 4,799 shares in the last quarter. Senvest Management LLC raised its stake in shares of Globalstar by 27.7% in the first quarter. Senvest Management LLC now owns 868,946 shares of the company's stock worth $57,715,000 after buying an additional 188,325 shares during the period. Finally, Van ECK Associates Corp raised its stake in shares of Globalstar by 19.5% in the fourth quarter. Van ECK Associates Corp now owns 584,601 shares of the company's stock worth $35,684,000 after buying an additional 95,275 shares during the period. 18.89% of the stock is owned by institutional investors.

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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