Gogo Inc. [GOGO] stock Upgrade by JP Morgan analyst, price target now $16

Gogo Inc. [NASDAQ: GOGO] price plunged by -5.56 percent to reach at -$0.72. The company report on September 15, 2022 that Gogo Repurchases 1.5 Million Shares of Common Stock from BlackRock.


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Gogo Inc. (NASDAQ: GOGO) (“Gogo” or the “Company”), the world’s largest provider of broadband connectivity services for the business aviation market, today announced that it has agreed to repurchase 1,500,000 shares of Common Stock owned by affiliates of BlackRock, Inc. (“BlackRock”), in a private transaction, for an aggregate purchase price of $18,345,000, or $12.23 per share (the “Repurchase”). The closing of the Repurchase will take place on or before September 21, 2022. The Repurchase is expected to be funded with cash on hand.

Gogo today also announced that BlackRock inadvertently acquired beneficial ownership of more than 4.9% of Gogo’s common stock (“Common Stock”), exceeding the threshold stipulated in Gogo’s Section 382 Rights Agreement, dated September 23, 2020 (the “Plan”). On September 15, 2022, pursuant to the Plan and following approval by the Gogo Board of Directors, Gogo requested that BlackRock, as promptly as practicable, divest sufficient shares of Common Stock to take its beneficial ownership below 4.9% (the “Shareholder Rights Plan Request”). Following completion of such requested share divestiture, BlackRock shall be deemed not to be an “Acquiring Person” under the Plan. Based on information provided by BlackRock, Gogo estimates that after the closing of the Repurchase, BlackRock would need to divest another approximately 100,000 shares of Common Stock in order to divest enough shares of Common Stock so as to not be deemed an “Acquiring Person” under the Plan.

A sum of 2597566 shares traded at recent session while its average daily volume was at 686.58K shares. Gogo Inc. shares reached a high of $13.04 and dropped to a low of $12.20 until finishing in the latest session at $12.23.

The one-year GOGO stock forecast points to a potential upside of 42.2. The average equity rating for GOGO stock is currently 2.40, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on 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 $21.16 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.

JP Morgan have made an estimate for Gogo Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 07, 2021. While these analysts kept the previous recommendation, Morgan Stanley raised their target price from $13 to $14. The new note on the price target was released on October 06, 2021, representing the official price target for Gogo Inc. stock. Previously, the target price had yet another raise from $12 to $14, while Cowen kept a Outperform rating on GOGO stock.

The Average True Range (ATR) for Gogo Inc. is set at 0.58, with the Price to Sales ratio for GOGO stock in the period of the last 12 months amounting to 4.29. Price to Free Cash Flow for GOGO in the course of the last twelve months was 21.89 with Quick ratio for the last quarter at 2.80.

GOGO Stock Performance Analysis:

Gogo Inc. [GOGO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.66. With this latest performance, GOGO shares dropped by -28.98% in over the last four-week period, additionally sinking by -29.43% over the last 6 months – not to mention a rise of 0.16% 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 20.60, with the RSI for the last a single of trading hit 14.51, and the three-weeks RSI is set at 26.16 for Gogo Inc. [GOGO]. The present Moving Average for the last 50 days of trading for this stock 15.79, while it was recorded at 13.09 for the last single week of trading, and 16.14 for the last 200 days.

Insight into Gogo Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Gogo Inc. [GOGO] shares currently have an operating margin of +35.93 and a Gross Margin at +64.95. Gogo Inc.’s Net Margin is presently recorded at +46.64.

Gogo Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.80 and a Current Ratio set at 3.30.

GOGO Stock EPS

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%.

Gogo Inc. [GOGO] Insider Position Details

There are presently around $1,049 million, or 67.50% of GOGO stock, in the hands of institutional investors. The top three institutional holders of GOGO stocks are: GTCR LLC with ownership of 31,739,011, which is approximately 0% of the company’s market cap and around 0.50% of the total institutional ownership; BLACKROCK INC., holding 9,850,990 shares of the stock with an approximate value of $120.48 million in GOGO stocks shares; and VANGUARD GROUP INC, currently with $68.18 million in GOGO stock with ownership of nearly 39.408% of the company’s market capitalization.

Positions in Gogo Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 86 institutional holders increased their position in Gogo Inc. [NASDAQ:GOGO] by around 15,159,119 shares. Additionally, 101 investors decreased positions by around 11,288,798 shares, while 24 investors held positions by with 59,315,421 shares. The mentioned changes placed institutional holdings at 85,763,338 shares, according to the latest SEC report filing. GOGO stock had 44 new institutional investments in for a total of 2,191,658 shares, while 35 institutional investors sold positions of 3,120,886 shares during the same period.

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