EchoStar (NASDAQ:SATS) Trading Up 8.7% – Here’s Why

EchoStar Corporation (NASDAQ:SATS) shares shot up 8.7% on Thursday . The company traded as high as $124.98 and last traded at $125.2340. 6,068,253 shares changed hands during trading, a decline of 5% from the average session volume of 6,367,020 shares. The stock had previously closed at $115.24.

More EchoStar News

Here are the key news stories impacting EchoStar this week:

• Positive Sentiment: Reports say EchoStar may be nearing roughly $44.65 billion in deals with AT&T and SpaceX to monetize spectrum, cut debt, and support future wireless growth. Article Title
• Positive Sentiment: EchoStar is being viewed as a major spectrum/catalyst story, with market commentary suggesting the asset value may be real and potentially significant for shareholders. Article Title
• Neutral Sentiment: CNBC listed EchoStar among the day’s biggest movers, reflecting heightened trading interest and momentum rather than a clear new fundamental update. Article Title
• Neutral Sentiment: CEO Hamid Akhavan sold 52,586 shares, but the filing says it was part of a pre-arranged 10b5-1 trading plan, so the sale may be routine despite adding some investor caution. Article Title
• Negative Sentiment: Short interest remains elevated, signaling skepticism from traders and the possibility of continued volatility in SATS. Article Title

Analyst Ratings Changes

A number of brokerages recently commented on SATS. Zacks Research lowered shares of EchoStar from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 10th. Weiss Ratings reissued a “sell (d-)” rating on shares of EchoStar in a research report on Monday, April 20th. New Street Research started coverage on shares of EchoStar in a research report on Wednesday, May 13th. They issued a “buy” rating and a $161.00 target price for the company. Wall Street Zen raised shares of EchoStar from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. Finally, TD Cowen boosted their target price on shares of EchoStar from $129.00 to $155.00 and gave the company a “buy” rating in a research report on Monday, May 18th. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, EchoStar presently has an average rating of “Hold” and an average target price of $137.14.

EchoStar Price Performance

The company’s 50-day moving average is $125.92 and its two-hundred day moving average is $114.10. The company has a debt-to-equity ratio of 3.17, a current ratio of 0.30 and a quick ratio of 0.27. The firm has a market cap of $36.45 billion, a P/E ratio of -2.50 and a beta of 0.94.

EchoStar (NASDAQ:SATS) last posted its quarterly earnings data on Saturday, May 9th. The communications equipment provider reported ($0.51) earnings per share for the quarter, missing the consensus estimate of ($0.48) by ($0.03). EchoStar had a negative return on equity of 4.80% and a negative net margin of 97.56%.The firm had revenue of $3.67 billion for the quarter, compared to the consensus estimate of $3.65 billion. During the same period in the prior year, the company earned ($0.71) EPS. Sell-side analysts anticipate that EchoStar Corporation will post -3.79 EPS for the current fiscal year.

Insider Buying and Selling

In other EchoStar news, CEO Hamid Akhavan sold 52,586 shares of the business’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $121.00, for a total transaction of $6,362,906.00. Following the completion of the transaction, the chief executive officer owned 865,633 shares of the company’s stock, valued at approximately $104,741,593. The trade was a 5.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 55.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of SATS. Bellwether Advisors LLC bought a new position in EchoStar in the 4th quarter valued at approximately $3,593,000. Junto Capital Management LP bought a new position in EchoStar in the 3rd quarter valued at approximately $55,199,000. Seven Grand Managers LLC bought a new position in EchoStar in the 4th quarter valued at approximately $21,740,000. Sumitomo Mitsui Trust Group Inc. bought a new position in EchoStar in the 4th quarter valued at approximately $28,994,000. Finally, Legal & General Group Plc raised its holdings in EchoStar by 47.0% in the 4th quarter. Legal & General Group Plc now owns 356,447 shares of the communications equipment provider’s stock valued at $38,746,000 after buying an additional 114,018 shares during the last quarter. Institutional investors and hedge funds own 33.62% of the company’s stock.

EchoStar Company 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.