Gogo Inc. [NASDAQ: GOGO] gained 4.93% on the last trading session, reaching $11.06 price per share at the time. The company report on December 1, 2020 that Gogo Completes Sale of Commercial Aviation Business to Intelsat.
Financially Stronger Gogo Well Positioned to Drive Growth and Continued Investment in Market-Leading Business Aviation Products and Services.
Gogo Inc. (NASDAQ: GOGO) (“Gogo”) announced it has completed the sale of its Commercial Aviation (CA) business to a subsidiary of Intelsat S.A. (OTC: INTEQ) (“Intelsat”) for $400 million in cash. Gogo will continue as a publicly traded company, now singularly focused on leveraging its ATG network and proprietary spectrum to serve the business aviation market. The proceeds from the transaction significantly strengthen Gogo’s financial position by reducing its net debt position and enhancing the company’s ability to invest in growth opportunities, including Gogo 5G.
Gogo Inc. represents 82.71 million in outstanding shares, while the company has a total market value of $929.26 million with the latest information. GOGO stock price has been found in the range of $10.74 to $11.95.
If compared to the average trading volume of 6.18M shares, GOGO reached a trading volume of 6464037 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Gogo Inc. [GOGO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GOGO shares is $12.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GOGO stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Cowen have made an estimate for Gogo Inc. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on September 09, 2020. While these analysts kept the previous recommendation, ROTH Capital dropped their target price from $8 to $10. The new note on the price target was released on September 01, 2020, representing the official price target for Gogo Inc. stock. Previously, the target price had yet another raise to $10, while ROTH Capital analysts kept a Buy rating on GOGO stock.
The Average True Range (ATR) for Gogo Inc. is set at 0.81, with the Price to Sales ratio for GOGO stock in the period of the last 12 months amounting to 2.25.
Trading performance analysis for GOGO stock
Gogo Inc. [GOGO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 10.93. With this latest performance, GOGO shares gained by 37.56% in over the last four-week period, additionally plugging by 322.14% over the last 6 months – not to mention a rise of 107.12% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GOGO stock in for the last two-week period is set at 59.83, with the RSI for the last a single of trading hit 62.73, and the three-weeks RSI is set at 58.93 for Gogo Inc. [GOGO]. The present Moving Average for the last 50 days of trading for this stock 9.74, while it was recorded at 10.85 for the last single week of trading, and 5.00 for the last 200 days.
Gogo Inc. [GOGO]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Gogo Inc. [GOGO] shares currently have an operating margin of +4.39 and a Gross Margin at +29.58. Gogo Inc.’s Net Margin is presently recorded at -17.47.
Return on Total Capital for GOGO is now 4.74, given the latest momentum, and Return on Invested Capital for the company is -18.99. Additionally, GOGO Total Debt to Total Capital is recorded at 150.24, with Total Debt to Total Assets ending up at 98.21.
Reflecting on the efficiency of the workforce at the company, Gogo Inc. [GOGO] managed to generate an average of -$130,945 per employee. Receivables Turnover for the company is 6.47 with a Total Asset Turnover recorded at a value of 0.67.Gogo Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 1.80.
Gogo Inc. [GOGO]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Gogo Inc. posted -0.28/share EPS, while the average EPS was predicted by analysts to be reported at -0.49/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 42.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GOGO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Gogo Inc. go to 10.00%.
An analysis of insider ownership at Gogo Inc. [GOGO]
There are presently around $431 million, or 46.10% of GOGO stock, in the hands of institutional investors. The top three institutional holders of GOGO stocks are: MUDRICK CAPITAL MANAGEMENT, L.P. with ownership of 8,726,814, which is approximately 0% of the company’s market cap and around 0.60% of the total institutional ownership; TENZING GLOBAL MANAGEMENT, LLC, holding 3,650,000 shares of the stock with an approximate value of $40.37 million in GOGO stocks shares; and VANGUARD GROUP INC, currently with $40.23 million in GOGO stock with ownership of nearly -17.825% of the company’s market capitalization.
Positions in Gogo Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 52 institutional holders increased their position in Gogo Inc. [NASDAQ:GOGO] by around 7,198,667 shares. Additionally, 73 investors decreased positions by around 9,741,575 shares, while 15 investors held positions by with 22,052,930 shares. The mentioned changes placed institutional holdings at 38,993,172 shares, according to the latest SEC report filing. GOGO stock had 31 new institutional investments in for a total of 3,559,284 shares, while 33 institutional investors sold positions of 3,352,966 shares during the same period.