Zacks Research Downgrades Globalstar (NASDAQ:GSAT) to Strong Sell

Globalstar (NASDAQ:GSAT) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday,Zacks.com reports.

GSAT has been the topic of several other reports. Craig Hallum reissued a “buy” rating and set a $70.00 target price on shares of Globalstar in a research note on Monday, March 2nd. Weiss Ratings raised Globalstar from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Globalstar presently has a consensus rating of “Hold” and a consensus price target of $69.00.

Globalstar Price Performance

GSAT opened at $82.33 on Tuesday. The company has a debt-to-equity ratio of 1.26, a quick ratio of 1.56 and a current ratio of 1.60. Globalstar has a 52-week low of $17.76 and a 52-week high of $83.00. The stock has a market capitalization of $10.60 billion, a PE ratio of -548.87, a price-to-earnings-growth ratio of 134.97 and a beta of 1.56. The stock’s 50 day moving average price is $71.18 and its 200-day moving average price is $64.16.

Globalstar (NASDAQ:GSAT) last posted its earnings results on Thursday, May 7th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.14). Globalstar had a negative net margin of 6.84% and a negative return on equity of 3.75%. The business had revenue of $70.06 million for the quarter. The business’s revenue was up 16.7% compared to the same quarter last year. On average, equities research analysts predict that Globalstar will post -0.02 EPS for the current year.

Insider Buying and Selling

In related news, CFO Rebecca Clary sold 4,066 shares of the company’s stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $81.24, for a total value of $330,321.84. Following the sale, the chief financial officer directly owned 121,198 shares of the company’s stock, valued at $9,846,125.52. This represents a 3.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel L Barbee Iv Ponder sold 682 shares of the business’s stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $57.31, for a total value of $39,085.42. Following the completion of the sale, the general counsel directly owned 143,348 shares in the company, valued at $8,215,273.88. This trade represents a 0.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 12,257 shares of company stock valued at $890,722 over the last ninety days. Company insiders own 60.00% of the company’s stock.

Institutional Investors Weigh In On Globalstar

Hedge funds have recently added to or reduced their stakes in the stock. SG Americas Securities LLC bought a new stake in Globalstar in the third quarter worth $713,000. Essex Investment Management Co. LLC bought a new stake in Globalstar in the third quarter worth $7,072,000. JT Stratford LLC purchased a new stake in shares of Globalstar during the third quarter valued at $2,678,000. Vanguard Group Inc. boosted its position in shares of Globalstar by 2.8% during the third quarter. Vanguard Group Inc. now owns 5,233,721 shares of the company’s stock valued at $190,455,000 after buying an additional 141,451 shares during the last quarter. Finally, American Century Companies Inc. boosted its position in shares of Globalstar by 24.3% during the third quarter. American Century Companies Inc. now owns 1,260,459 shares of the company’s stock valued at $45,868,000 after buying an additional 246,123 shares during the last quarter. 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.