Globalstar Inc. (AMEX: GSAT) stock jumped 0.77% on Monday to $1.31 against a previous-day closing price of $1.30. With 3.22 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.62 million shares. During the session, the Telecom Services company that operates in wider Communication Services sector, reached to the highest price of $1.3300 whereas the lowest price it dropped to was $1.3000. The 52-week range on GSAT shows that it touched its highest point at $2.98 and its lowest point at $0.90 during that stretch. It currently has a 1-year price target of $3.50. Beta for the stock currently stands at 0.70.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GSAT was down-trending over the past week, with a drop of -11.49%, but this was down by -1.50% over a month. The stock gained 27.18% in the past year, while it has lost -1.50% so far this year. A look at the trailing 12-month EPS for GSAT yields -0.15 with Next year EPS estimates of -0.02. For the next quarter, that number is -0.01. This implies an EPS growth rate of 4.40% for this year and 86.70% for next year. EPS is expected to grow by 15.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 12.50%.
Float and Shares Shorts:
At present, 1.80 billion GSAT shares are outstanding with a float of 681.44 million shares on hand for trading. On Oct 13, 2022, short shares totaled 34.09 million, which was 1.89% higher than short shares on Sep 14, 2022. In addition to Mr. James Monroe III as the firm’s Exec. Chairman, Mr. David B. Kagan serves as its Chief Exec. Officer.
Through their ownership of 18.23% of GSAT’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.83% of GSAT, in contrast to 61.69% held by mutual funds. Shares owned by individuals account for 10.67%. As the largest shareholder in GSAT with 4.82% of the stake, Mudrick Capital Management LP holds 86,838,950 shares worth 86,838,950. A second-largest stockholder of GSAT, The Vanguard Group, Inc., holds 65,827,246 shares, controlling over 3.66% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in GSAT, holding 38,924,514 shares or 2.16% stake. With a 1.20% stake in GSAT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 21,677,414 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.03% of GSAT stock, is the second-largest Mutual Fund holder. It holds 18,561,973 shares valued at 24.69 million. iShares Russell 2000 ETF holds 0.85% of the stake in GSAT, owning 15,291,200 shares worth 20.34 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GSAT since 3 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GSAT analysts setting a high price target of $5.00 and a low target of $1.75, the average target price over the next 12 months is $3.50. Based on these targets, GSAT could surge 281.68% to reach the target high and rise by 33.59% to reach the target low. Reaching the average price target will result in a growth of 167.18% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GSAT will report FY 2022 earnings on 02/23/2024. Analysts have provided yearly estimates in a range of -$0.03 being high and -$0.98 being low. For GSAT, this leads to a yearly average estimate of -$0.39. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Globalstar Inc. surprised analysts by -$0.09 when it reported -$0.10 EPS against a consensus estimate of -$0.01. The surprise factor in the prior quarter was $0.01. The average estimate for the next quarter is thus -$0.01.
Summary of Insider Activity:
Insiders traded GSAT stock several times over the past three months with 21 Buys and 18 Sells. In these transactions, 3,109,233 shares were bought while 5,109,374 shares were sold. The number of buy transactions has increased to 37 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 3,837,918 while 5,158,563 shares were sold.