Is Gogo Inc. (GOGO) A Risky Investment?


Gogo Inc. (NASDAQ:GOGO) finished Friday with a subtraction of -$0.48 to close at $14.76, a downside of -3.15 percent. An average of 612,100 shares of common stock have been traded in the last five days. There was a gain of $0.92 in the past week, and it reached a new high 22 times over the past 12 months. The last 20 days have seen an average of 821,405 shares traded, while the 50-day average volume stands at 761,270.

GOGO stock has decreased by -5.93% in the last month. The company shares reached their 1-month lowest point of $13.74 on 12/22/22. With the stock rallying to its 52-week high on 04/14/22, shares of the company touched a low of $11.57 and a high of $23.69 in 52 weeks. It has reached a new high 21 times so far this year and achieved 9.09% or $1.23 in price. In spite of this, the price is down -37.70% from the 52-week high.

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Insider Transactions

GOGO stock investors should be aware that Gogo Inc. (GOGO) stock had its last reported insider trading activity 219 days ago on May 26. In this transaction, the insider spent $158,480. EVP, Gen Counsel and Secy, Elias Marguerite M, disposed of 30,000 shares at a price of $18.79 on May 24. The insider now owns more than $563,739 worth of shares.

Valuation Metrics

Gogo Inc. (GOGO) has a trailing price-to-earnings (P/E) ratio of 9.85. The stock’s beta is 1.27. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.51, and the price-to-cash flow ratio at 19.92.

Financial Health

The quick ratio of Gogo Inc. for the three months ended September 29 was 3.10, and the current ratio was 3.70, indicating that the company is able to meet its debt obligations. Its gross profit as reported stood at $233.52 million compared to revenue of $335.72 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, Gogo Inc.’s return on assets was 40.70%.

Earnings Surprise

For the three-month period that ended September 29, Gogo Inc. had $691.34 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $20.18 million in the quarter, while revenues were grew 45.69%. The analyst consensus anticipated Gogo Inc.’s latest quarter earnings to come in at $0.15 per share, but it turned out to be $0.15, a 0.00% surprise. For the quarter, EBITDA amounted to $39.88 million. Shareholders own equity worth $127.27 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Gogo Inc. (GOGO) price momentum. RSI 9-day as of the close on 30 December was 47.43%, suggesting the stock is Neutral, with historical volatility in this time frame at 66.48%.

As of today, GOGO’s price is $14.74 +6.65% or $0.92 from its 5-day moving average. GOGO is currently trading -6.40% lower than its 20-day SMA and -8.83% lower than its 100-day SMA. However, the stock’s current price level is +17.33% above the SMA50 and -14.83% below the SMA200.

The stochastic %K and %D were 46.31% and 41.98%, respectively, and the average true range (ATR) was 0.60. With the 14-day stochastic at 45.41% and the average true range at 0.57, the RSI (14) stands at 47.84%. The stock has reached 0.13 on the 9-day MACD Oscillator while the 14-day reading was at -0.14.

Analyst Ratings

Morgan Stanley upgraded Gogo Inc. (NASDAQ: GOGO) to a an Equal-weight rating in its most recent analyst report. Previously, the stock was rated as an Underweight. The consensus rating for Gogo Inc. (GOGO) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell GOGO, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 4 others rate it as a “buy”.

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

Analysts predict a range of price targets between $15.00 and $26.00, with a median target of $20.40. Taking a look at these predictions, the average price target given by analysts for Gogo Inc. (GOGO) stock is $20.63.


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