EchoStar Corporation’s shares experienced a significant increase in pre-market trading on Monday, opening at $86.05 after closing at $82.00 the previous day. As trading continued, the stock reached $88.40, with a total volume of 1,972,489 shares traded. This surge reflects a positive outlook among some analysts, although opinions on the stock’s future vary.
Analysts Weigh In on EchoStar’s Performance
Recent reports from various financial analysts have provided mixed sentiments regarding EchoStar’s stock. Analysts at Cowen maintained a “buy” rating on EchoStar, showcasing confidence in the company’s potential growth. In contrast, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating, indicating caution. Deutsche Bank Aktiengesellschaft set a target price of $105.00, while TD Cowen adjusted its target from $28.00 to $67.00, also rating the shares as a “buy.” Morgan Stanley raised their price target from $59.00 to $91.00, assigning an “equal weight” rating.
Currently, three analysts have rated EchoStar as a buy, four have issued hold ratings, and one has recommended selling. According to data from MarketBeat, the average rating for the stock stands at “hold,” with a consensus price target of $75.60.
Financial Results and Insider Activity
EchoStar recently reported its earnings for the quarter ending November 6. The communications equipment provider posted a loss of ($44.37) earnings per share (EPS), falling short of the consensus estimate of ($1.23) by a significant margin of ($43.14). The company generated revenue of $3.61 billion, which also did not meet expectations of $3.75 billion. This marked a 7.1% decline in revenue compared to the same quarter last year, when it reported a loss of ($0.52) EPS. Analysts anticipate that EchoStar will post an EPS of (-1.99) for the current year.
In other notable developments, Chief Operating Officer Paul Gaske sold 9,483 shares on September 12 for an average price of $75.87, totaling $719,475.21. Following this sale, Gaske retained just 149 shares, valued at approximately $11,304.63. This transaction represents a considerable decrease of 98.45% in his holdings. Additionally, Director Kathleen Q. Abernathy sold 16,754 shares on September 9 at an average price of $82.35, bringing in $1,379,691.90.
In the previous quarter, insiders sold a total of 437,740 shares worth approximately $33,837,710, with company insiders currently holding 55.70% of EchoStar’s stock.
Institutional investor activity has also seen notable movements. DLD Asset Management LP acquired a new position valued at approximately $2.48 billion during the third quarter. Carl C. Icahn also made a significant investment, purchasing shares valued at around $332.51 million. Other firms, such as Contrarius Group Holdings Ltd and Junto Capital Management LP, have also increased their stakes in EchoStar.
As it stands, institutional investors and hedge funds collectively own 33.62% of the company’s stock, highlighting a significant interest in EchoStar’s future.
About EchoStar Corporation
EchoStar Corporation, headquartered in the United States, provides a wide range of networking technologies and services globally. The company operates in four primary segments: Pay-TV, Retail Wireless, 5G Network Deployment, and Broadband and Satellite Services. Its Pay-TV segment offers direct broadcast and fixed satellite services, as well as digital broadcast operations for third-party providers. This includes multichannel, live-linear, and on-demand streaming services under the DISH and SLING brands.
As EchoStar navigates the complexities of the market, its recent stock performance and the mixed feedback from analysts will likely play a significant role in shaping investor sentiment in the coming weeks.
