Buying Globalstar Inc. (GSAT) Stock Is A Smart Move Today?

Globalstar Inc. (AMEX:GSAT) finished Wednesday with an addition of $0.06 to close at $1.64, an upside of 3.80 percent. An average of 15,067,181 shares of common stock have been traded in the last five days. There was a gain of $0.1300 in the past week. The last 20 days have seen an average of 16,835,195 shares traded, while the 50-day average volume stands at 46,063,008.

GSAT stock has decreased by -6.29% in the last month. The company shares reached their 1-month lowest point of $1.4300 on 10/06/21. With the stock rallying to its 52-week high on 02/10/21, shares of the company touched a low of $0.29 and a high of $2.98 in 52 weeks. In spite of this, the price is down -44.97% from the 52-week high.

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Valuation Metrics

Globalstar Inc. (GSAT) has a trailing price-to-earnings (P/E) ratio of 17.20 for the broader industry and 30.41 for the sector. In the last five years, Globalstar Inc.’s PE ratio has ranged between 51.78 and 6.069. The stock’s beta is 0.03. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 24.85, the price-to-book (PB) ratio at 7.13, and the price-to-cash flow ratio at 48.17.

The quick ratio of Globalstar Inc. for the three months ended June 29 was 1.00, and the current ratio was 1.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.76 and a total debt to equity ratio of 0.76 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 59.00% against a 5-year average of 59.2%. Globalstar Inc.’s EBITDA margin for the year ending June 29 is 31.09%, while its operating margin for the same period stands at -50.50%. Its gross profit as reported stood at $79.81 million compared to revenue of $128.49 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Globalstar Inc.’s return on assets was -11.60%, compared to -6.1% over the last five years. In the past year, the return on investment has been -7.40%, and the 5-year average is -6.7%. Meanwhile, the return on equity (ROE) for the past 12 months has been -24.30% and the 5-year average holds at -26.0%. For the broader industry, ROE averaged 4.52 over the past year.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $30.28 million in the quarter, while revenues of $26.93 million were shrunk -0.26%. The analyst consensus anticipated Globalstar Inc.’s latest quarter earnings to come in at -$0.01 per share, but it turned out to be -$0.01, a 0.00% surprise. For the quarter, EBITDA amounted to $8.51 million. Shareholders own equity worth $1.79 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Globalstar Inc. (GSAT) price momentum. RSI 9-day as of the close on 13 October was 51.73%, suggesting the stock is Neutral, with historical volatility in this time frame at 65.91%.

As of today, GSAT’s price is $1.5520 +8.61% or $0.1300 from its 5-day moving average. GSAT is currently trading -11.83% lower than its 20-day SMA and +10.81% higher than its 100-day SMA. However, the stock’s current price level is +21.48% above the SMA50 and +343.24% above the SMA200.

The stochastic %K and %D were 35.87% and 26.70%, respectively, and the average true range (ATR) was 0.1446. With the 14-day stochastic at 52.50% and the average true range at 0.1604, the RSI (14) stands at 49.26%. The stock has reached 0.0422 on the 9-day MACD Oscillator while the 14-day reading was at -0.0067.

Analyst Ratings

B. Riley Securities launched coverage on Globalstar Inc. (AMEX: GSAT) in its analyst report released on June 21, 2021. The firm assigned the stock a a Buy rating.The consensus rating for Globalstar Inc. (GSAT) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell GSAT, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 1 others rate it as a “buy”.

What is GSAT’s price target for the next 12 months?

Analysts predict a range of price targets between $0.55 and $3.25, with a median target of $1.90. Taking a look at these predictions, the average price target given by analysts for Globalstar Inc. (GSAT) stock is $1.90.


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