Globalstar Inc. [AMEX: GSAT] traded at a low on 04/18/23, posting a -3.54 loss after which it closed the day’ session at $0.99. The company report on March 29, 2023 that Globalstar Announces $200 Million Non-Convertible Financing to Satisfy Remaining Capital Needs.
Globalstar, Inc. (NYSE American: GSAT), a leading telecom infrastructure provider, today announced that it has entered into a purchase agreement with an affiliate of Värde Partners and others providing for the sale of $200 million in aggregate principal amount of 13% Senior Notes due 2029. This transaction is expected to close on or around March 31, 2023. The notes are non-convertible and therefore do not result in equity dilution. Goldman Sachs & Co. LLC acted as exclusive placement agent to Globalstar in connection with the financing.
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The proceeds from the notes will be used primarily to repay all remaining amounts due under Globalstar’s 2019 facility agreement of approximately $148 million. The remaining proceeds will be used for fees and general corporate purposes.
The results of the trading session contributed to over 3690567 shares changing hands. Over the past one week, the price volatility of Globalstar Inc. stands at 3.93% while the volatility over the past one month is 5.49%.
The market cap for GSAT stock reached $1.85 billion, with 1.81 billion shares outstanding and 681.44 million shares in the current float. Compared to the average trading volume of 3.90M shares, GSAT reached a trading volume of 3690567 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Globalstar Inc. [GSAT]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GSAT shares is $3.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GSAT stock is a recommendation set at 2.70. 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.
Craig Hallum have made an estimate for Globalstar Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 31, 2022. While these analysts kept the previous recommendation, B. Riley Securities raised their target price to Buy. The new note on the price target was released on June 21, 2021, representing the official price target for Globalstar Inc. stock.
The Average True Range (ATR) for Globalstar Inc. is set at 0.06, with the Price to Sales ratio for GSAT stock in the period of the last 12 months amounting to 12.47. The Price to Book ratio for the last quarter was 5.84, with the Price to Cash per share for the same quarter was set at 0.02. Price to Free Cash Flow for GSAT in the course of the last twelve months was 32.66 with Quick ratio for the last quarter at 0.40.
How has GSAT stock performed recently?
Globalstar Inc. [GSAT] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.01. With this latest performance, GSAT shares dropped by -12.85% in over the last four-week period, additionally sinking by -40.86% over the last 6 months – not to mention a drop of -22.98% 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 GSAT stock in for the last two-week period is set at 37.85, with the RSI for the last a single of trading hit 32.44, and the three-weeks RSI is set at 40.06 for Globalstar Inc. [GSAT]. The present Moving Average for the last 50 days of trading for this stock 1.1384, while it was recorded at 1.0387 for the last single week of trading, and 1.5062 for the last 200 days.
Globalstar Inc. [GSAT]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Globalstar Inc. [GSAT] shares currently have an operating margin of -36.70 and a Gross Margin at -7.47. Globalstar Inc.’s Net Margin is presently recorded at -173.00.
Return on Total Capital for GSAT is now -9.30, given the latest momentum, and Return on Invested Capital for the company is -46.41. Return on Equity for this stock declined to -75.54, with Return on Assets sitting at -31.19. When it comes to the capital structure of this company, Globalstar Inc. [GSAT] has a Total Debt to Total Equity ratio set at 70.63. Additionally, GSAT Total Debt to Total Capital is recorded at 41.39, with Total Debt to Total Assets ending up at 26.68. Long-Term Debt to Equity for the company is recorded at 50.75, with the Long-Term Debt to Total Capital now at 29.74.
Reflecting on the efficiency of the workforce at the company, Globalstar Inc. [GSAT] managed to generate an average of -$773,840 per employee. Receivables Turnover for the company is 6.25 with a Total Asset Turnover recorded at a value of 0.18.Globalstar Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 0.40.
Earnings analysis for Globalstar Inc. [GSAT]
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 GSAT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Globalstar Inc. go to 15.00%.
Insider trade positions for Globalstar Inc. [GSAT]
There are presently around $354 million, or 18.60% of GSAT stock, in the hands of institutional investors. The top three institutional holders of GSAT stocks are: MUDRICK CAPITAL MANAGEMENT, L.P. with ownership of 86,838,949, which is approximately 0% of the company’s market cap and around 0.70% of the total institutional ownership; VANGUARD GROUP INC, holding 68,261,560 shares of the stock with an approximate value of $70.31 million in GSAT stocks shares; and BLACKROCK INC., currently with $46.7 million in GSAT stock with ownership of nearly 3.125% of the company’s market capitalization.
Positions in Globalstar Inc. stocks held by institutional investors increased at the end of Thursday and at the time of the Thursday reporting period, where 106 institutional holders increased their position in Globalstar Inc. [AMEX:GSAT] by around 22,079,988 shares. Additionally, 65 investors decreased positions by around 10,553,765 shares, while 59 investors held positions by with 310,863,705 shares. The mentioned changes placed institutional holdings at 343,497,458 shares, according to the latest SEC report filing. GSAT stock had 36 new institutional investments in for a total of 3,056,459 shares, while 19 institutional investors sold positions of 1,022,612 shares during the same period.