Globalstar (NASDAQ:GSAT) Shares Down 7% – Should You Sell?

Globalstar, Inc. (NASDAQ:GSAT)’s stock price fell 7% during mid-day trading on Wednesday . The company traded as low as $62.50 and last traded at $62.56. 375,979 shares traded hands during trading, a decline of 36% from the average session volume of 587,467 shares. The stock had previously closed at $67.30.

Analyst Ratings Changes

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

Globalstar Trading Down 7.9%

The company has a fifty day simple moving average of $60.88 and a two-hundred day simple moving average of $41.87. The company has a market capitalization of $7.86 billion, a P/E ratio of -134.74 and a beta of 1.10. The company has a debt-to-equity ratio of 1.33, a current ratio of 2.53 and a quick ratio of 2.46.

Globalstar (NASDAQ:GSAT) last issued its quarterly earnings data 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 return on equity of 3.67% and a negative net margin of 21.07%.The business had revenue of $73.85 million for the quarter. During the same period in the previous year, the business posted $0.06 earnings per share. The firm’s revenue was up 2.1% on a year-over-year basis.

Insider Buying and Selling

In other news, CFO Rebecca Clary sold 16,316 shares of the business’s stock in a transaction on Monday, November 17th. The shares were sold at an average price of $58.32, for a total value of $951,549.12. Following the completion of the sale, the chief financial officer directly owned 98,374 shares in the company, valued at approximately $5,737,171.68. The trade was a 14.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, General Counsel L Barbee Iv Ponder sold 9,790 shares of the company’s stock in a transaction on Monday, November 17th. The stock was sold at an average price of $58.32, for a total transaction of $570,952.80. Following the sale, the general counsel directly owned 135,658 shares of the company’s stock, valued at approximately $7,911,574.56. This represents a 6.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 56,151 shares of company stock worth $3,197,987. Insiders own 60.76% of the company’s stock.

Institutional Investors Weigh In On Globalstar

Hedge funds and other institutional investors have recently made changes to their positions in the business. Greenhouse Funds LLLP boosted its stake in Globalstar by 11.6% in the 2nd quarter. Greenhouse Funds LLLP now owns 2,025,516 shares of the company’s stock valued at $47,701,000 after buying an additional 209,825 shares in the last quarter. Entropy Technologies LP acquired a new position in Globalstar during the second quarter worth $351,000. Connor Clark & Lunn Investment Management Ltd. lifted its holdings in shares of Globalstar by 124.0% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 143,039 shares of the company’s stock valued at $3,369,000 after acquiring an additional 79,185 shares during the period. Y Intercept Hong Kong Ltd bought a new position in shares of Globalstar during the second quarter valued at $343,000. Finally, Palogic Value Management L.P. acquired a new stake in shares of Globalstar in the 2nd quarter valued at $1,178,000. 18.89% of the stock is owned by institutional investors and hedge funds.

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.