Considering Buying Globalstar, Inc. (GSAT)? Read This First

Analysts at Chardan Capital Markets cut their rating on shares of Globalstar, Inc. (NYSE:GSAT) from Buy to Neutral in their opinion released on August 09. Chardan Capital Markets analysts bumped their recommendation on GSAT stock from Neutral to Buy in a separate flash note to investors on February 24. Analysts at Chardan Capital Markets downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to June 13.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Globalstar, Inc. (NYSE:GSAT)’s prospects. The earliest insider trade took place on 12/21/2018. Monroe James Iii gathered a total of 156 million shares of company at average share price of $0.36. The total for the purchase was set at $56.16 million. After this transaction, the CEO, 10% Owner account balance stood at 825 million shares. The stock grew 38.89 percent since that insider purchase. On 06/11/2018, Ponder L Barbee Iv, General Counsel, sold 100 thousand shares at a price per share of $0.49. This removed 49 thousand shares from the insider’s fortune and the stock saw a 2.04 percent rally in value since the news became public. This transaction left 493.03 thousand shares in the General Counsel account. On 12/12/2017, CEO, 10% Owner Monroe James Iii performed a sale transaction worth $44.08 million. This sale at $1.16 each has eliminated 38 million shares from the insider’s portfolio position. Meanwhile, shares have recorded -56.9 percent decrease since the transaction was reported. The insider now is left with 671 million shares remaining in the account. Monroe James Iii, who performs the CEO, 10% Owner job, bought 27.61 million shares for $43.34 million. The acquisition occurred on 10/11/2017 was priced at $1.57 per share. The share price plunged -68.15 percent since the reporting date. Monroe James Iii now left with a stake of 709 million GSAT stock worth $354.5 million after the insider buying.

Globalstar, Inc. (GSAT) is expected to jump by -100 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $0.7-month high price target. This represents a whopping 40 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $0.7, which represents a return potential of 40 percent when compared to the closing price of the stock of $0.5 on Thursday, February 28. The lowest price target for the stock is $0.7 — slightly more than 40 percent from GSAT’s current share price.

The shares are currently floating around the first support level of $0.48. Below this, the next support is placed in the zone of $0.46. Till the time, the GSAT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 35.17 on daily chart, which may remain a cause for comfort. If the price breaks below $0.46 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.53 mark may result into a pull-back move towards $0.56 level.

GSAT shares accumulated 0 points or 1.31 percent on Thursday to $0.5 with a heavy trade volume of 12.061 million shares. After opening the session at $0.51, the shares went as high as $0.54 and as low as $0.49, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $771 million and now has 1.54 billion shares outstanding. Globalstar, Inc. (GSAT) stock has lost -25.13 percent of market value in 21 trading days.

GSAT stock has a trailing 3-year beta of 0.32, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.17 a share in the trailing twelve months. The stock’s value has fallen -21.57 percent year to date (YTD) against a decline of -46.91 percent in 12 month’s time. The company’s shares still trade -50.33 percent away from its 1-year high of $1.01 and 73 percent up from 52-week low of $0.29. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Globalstar, Inc. (GSAT) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry GSAT operates in has an average P/E of 16.26. Its P/E ratio went as low as 24.5X and as high as 24.5 over the 5-year span. Further, it is sporting a 6.04 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.37. 59.7 percent is the gross profit margin for Globalstar, Inc. and operating margin sits at -27.8 percent. Along with this, the net profit margin is 52.8 percent.

GSAT will be showing off its Q4 earnings. Analysts are forecasting revenue to climb 3.7 percent to $29.8M in the next fiscal quarter, while earnings are seen soaring by nearly -133.33 percent to -$0.02 per share. History has shown that shares in Globalstar, Inc. have gone up on 8 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.07 per share, worse than the -$0.02, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $35.69M, better than the $31.44M analysts expected. Earnings are estimated to increase by -144.8 percent this year, -250 percent next year and continue to increase by 15 percent annually for the next 5 years.