ViaSat, Inc. (NASDAQ:VSAT) Cut to “Sell” at Zacks Investment Research
ViaSat, Inc. (NASDAQ:VSAT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Friday.
According to Zacks, “ViaSat posted dismal results for first-quarter fiscal 2018, as non-GAAP earnings declining 82.6% year over year, hurt by escalating research and development costs, and costs related to the ViaSat-2 service launch activities. Still, the company posted record first-quarter revenues, driven by terrific growth in government business and somewhat offset by contraction in Commercial Networks revenues. The company recently launched ViaSat-2 satellite, which holds tremendous potential over the long run. However, seasonality in satellite service segment, strong competition and soaring research and development expenses continue to be headwinds for the company. However, persistent weakness in the Commercial Networks segment, due to soft sales of large integrated antenna systems programs, is proving to be a drag on the company’s financials. ViaSat shares have underperformed the industry’s average return as well, over the past year.”
A number of other analysts also recently issued reports on VSAT. Royal Bank Of Canada set a $48.00 price objective on shares of ViaSat and gave the stock a “sell” rating in a report on Saturday, May 6th. TheStreet downgraded shares of ViaSat from a “b-” rating to a “c” rating in a report on Wednesday. B. Riley restated a “buy” rating and set a $89.00 price objective on shares of ViaSat in a report on Sunday, June 4th. Barclays PLC restated an “equal weight” rating and set a $80.00 price objective (down previously from $82.00) on shares of ViaSat in a report on Monday, July 10th. Finally, J P Morgan Chase & Co reiterated a “neutral” rating and set a $74.00 target price on shares of ViaSat in a research report on Wednesday, May 31st. Four investment analysts have rated the stock with a sell rating, five have issued a hold rating and seven have issued a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus target price of $76.45.
ViaSat (NASDAQ VSAT) traded down 1.633% on Friday, hitting $59.935. 50,281 shares of the stock traded hands. The firm has a market capitalization of $3.47 billion, a PE ratio of 259.459 and a beta of 0.68. The stock has a 50 day moving average of $65.44 and a 200 day moving average of $65.61. ViaSat has a 52 week low of $57.75 and a 52 week high of $82.19.
ViaSat (NASDAQ:VSAT) last posted its quarterly earnings data on Tuesday, August 8th. The communications equipment provider reported $0.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by $0.03. ViaSat had a return on equity of 1.21% and a net margin of 0.82%. The company had revenue of $380 million for the quarter, compared to analysts’ expectations of $384.29 million. During the same quarter last year, the business posted $0.23 EPS. The business’s quarterly revenue was up 4.7% on a year-over-year basis. Equities research analysts anticipate that ViaSat will post $0.05 earnings per share for the current year.
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In other ViaSat news, Director Jeffrey M. Nash sold 5,000 shares of ViaSat stock in a transaction that occurred on Wednesday, June 7th. The shares were sold at an average price of $71.76, for a total transaction of $358,800.00. Following the completion of the sale, the director now directly owns 5,000 shares in the company, valued at $358,800. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director John P. Stenbit sold 700 shares of ViaSat stock in a transaction that occurred on Wednesday, July 5th. The shares were sold at an average price of $64.78, for a total transaction of $45,346.00. Following the sale, the director now owns 8,700 shares of the company’s stock, valued at $563,586. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 26,400 shares of company stock valued at $1,771,886. 7.70% of the stock is currently owned by company insiders.
A number of large investors have recently made changes to their positions in the stock. FMR LLC raised its stake in shares of ViaSat by 124.0% in the fourth quarter. FMR LLC now owns 6,051 shares of the communications equipment provider’s stock valued at $401,000 after buying an additional 3,350 shares during the last quarter. Guggenheim Capital LLC increased its position in ViaSat by 40.4% in the fourth quarter. Guggenheim Capital LLC now owns 18,115 shares of the communications equipment provider’s stock valued at $1,199,000 after buying an additional 5,211 shares during the period. Teachers Advisors LLC increased its position in ViaSat by 13.5% in the fourth quarter. Teachers Advisors LLC now owns 83,202 shares of the communications equipment provider’s stock valued at $5,510,000 after buying an additional 9,899 shares during the period. Macquarie Group Ltd. acquired a new position in ViaSat during the fourth quarter valued at approximately $1,004,000. Finally, Bank of Montreal Can increased its position in ViaSat by 12.2% in the first quarter. Bank of Montreal Can now owns 41,457 shares of the communications equipment provider’s stock valued at $2,646,000 after buying an additional 4,509 shares during the period. Institutional investors and hedge funds own 94.17% of the company’s stock.
ViaSat, Inc is engaged in broadband technologies and services. The Company operates through three segments: satellite services, commercial networks and government systems. The satellite services segment provides satellite-based broadband services to consumers, enterprises, commercial airlines and mobile broadband customers primarily in the United States.
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