Sachem Head Capital Management LP Invests $568.22 Million in EchoStar Corporation $SATS

Sachem Head Capital Management LP purchased a new position in EchoStar Corporation (NASDAQ:SATS) in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 5,227,400 shares of the communications equipment provider’s stock, valued at approximately $568,218,000. EchoStar makes up 13.3% of Sachem Head Capital Management LP’s portfolio, making the stock its biggest holding.

Other institutional investors also recently modified their holdings of the company. Hollencrest Capital Management bought a new position in shares of EchoStar in the 4th quarter worth about $26,000. CoreCap Advisors LLC bought a new position in shares of EchoStar in the 4th quarter worth about $28,000. Rosenberg Matthew Hamilton bought a new position in shares of EchoStar in the 4th quarter worth about $29,000. Tucker Asset Management LLC bought a new position in shares of EchoStar in the 4th quarter worth about $42,000. Finally, BOKF NA increased its stake in shares of EchoStar by 300.0% in the 4th quarter. BOKF NA now owns 400 shares of the communications equipment provider’s stock worth $43,000 after acquiring an additional 300 shares in the last quarter. 33.62% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on SATS shares. UBS Group increased their price target on shares of EchoStar from $125.00 to $127.00 and gave the stock a “neutral” rating in a research note on Tuesday, March 3rd. Zacks Research lowered shares of EchoStar from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 10th. Williams Trading set a $155.00 price target on shares of EchoStar in a research note on Monday, May 18th. Weiss Ratings reiterated a “sell (d-)” rating on shares of EchoStar in a research note on Monday, April 20th. Finally, New Street Research started coverage on shares of EchoStar in a research note on Wednesday, May 13th. They issued a “buy” rating and a $161.00 price target for the company. Four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $137.14.

EchoStar Price Performance

NASDAQ:SATS opened at $114.08 on Monday. The firm has a market cap of $33.06 billion, a P/E ratio of -2.28 and a beta of 0.95. The company has a debt-to-equity ratio of 3.17, a quick ratio of 0.27 and a current ratio of 0.30. EchoStar Corporation has a fifty-two week low of $16.73 and a fifty-two week high of $147.25. The firm has a 50-day simple moving average of $126.01 and a two-hundred day simple moving average of $114.82.

EchoStar (NASDAQ:SATS) last released its quarterly earnings data on Saturday, May 9th. The communications equipment provider reported ($0.51) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.48) by ($0.03). The firm had revenue of $3.67 billion for the quarter, compared to the consensus estimate of $3.65 billion. EchoStar had a negative net margin of 97.56% and a negative return on equity of 4.80%. During the same quarter in the prior year, the business posted ($0.71) earnings per share.

Insiders Place Their Bets

In other EchoStar news, CEO Hamid Akhavan sold 52,586 shares of the firm’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $121.00, for a total transaction of $6,362,906.00. Following the completion of the sale, the chief executive officer directly owned 865,633 shares in the company, valued at approximately $104,741,593. This trade represents a 5.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 55.70% of the company’s stock.

Trending Headlines about EchoStar

Here are the key news stories impacting EchoStar this week:

• Positive Sentiment: EchoStar remains closely tied to enthusiasm around the SpaceX IPO, and that relationship helped drive a sharp run-up in the stock earlier in the week as traders speculated on the value of EchoStar’s SpaceX stake. All Eyes on SpaceX IPO Today
• Positive Sentiment: Analyst targets on SATS remain above the current share price, with recent estimates implying upside if the company can stabilize operations and reduce balance-sheet risk. SpaceX IPO Crowds Pre-Market Sentiment
• Neutral Sentiment: The SpaceX IPO is dominating market chatter and has increased trading interest in Space-related names, which has boosted volatility in EchoStar rather than changing the company’s fundamentals directly. Stock Movers Ahead of SpaceX Debut
• Negative Sentiment: EchoStar disclosed that its DISH DBS subsidiary missed about $183 million in interest payments due June 1, which is a default under the indentures unless cured during the grace period; that has renewed default and liquidity worries. EchoStar shares slide as missed interest payment rekindles default and liquidity concerns
• Negative Sentiment: After the recent surge, traders appear to be taking profits, and Friday’s weakness reflects a pullback from the SpaceX-linked rally combined with renewed concern about refinancing risk. Stock Market Today, June 12: EchoStar Falls as SpaceX-Linked Rally Meets DISH DBS Payment Risk

EchoStar Profile

EchoStar Corporation (NASDAQ: SATS) is a global provider of satellite communication solutions, offering a suite of broadband and video delivery services to consumer, enterprise and government customers. The company operates two principal business segments: Broadband and Video. Through its Broadband segment, EchoStar delivers high-speed satellite internet access, managed network services and ground infrastructure for residential, commercial and rural markets. Its Video segment provides satellite fleet operations, teleport facilities and capacity-leasing services to video distributors and content providers.

In the Broadband segment, EchoStar’s Hughes Network Systems division designs and manufactures satellite broadband equipment, including user terminals and gateways, and develops advanced network management technologies.