ViaSat, Inc. (VSAT) Rating Lowered to Hold at Zacks Investment Research
ViaSat, Inc. (NASDAQ:VSAT) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “ViaSat’s second-quarter fiscal 2018 adjusted earnings beat the Zacks Consensus Estimate by a whopping 250% but fell year over year, hurt by escalating research and development costs, and costs related to the ViaSat-2 service launch activities. High R&D and ramp-up costs remain a major headwind to the company’s margins in the near term. The company recorded terrific growth in government business, which was somewhat offset by contraction in Commercial Networks revenues. Steady growth in in-flight connectivity services, mobile broadband, consumer ARPU gains and cost-reduction initiatives proved conducive to growth. ViaSat shares have outperformed the industry’s average return as well, over the past six months. However, persistent weakness in the Commercial Networks segment, seasonality of demand, strong competition and huge rise in R&D expenses continue to be overhangs for the company’s profitability.”
A number of other analysts also recently issued reports on the company. Needham & Company LLC upgraded ViaSat from a “hold” rating to a “buy” rating and set a $78.00 price target for the company in a research report on Friday. B. Riley reiterated a “buy” rating and set a $89.00 price target on shares of ViaSat in a research report on Thursday, November 9th. Royal Bank Of Canada dropped their price target on ViaSat from $50.00 to $48.00 and set an “underperform” rating for the company in a research report on Thursday, October 5th. Jefferies Group LLC set a $67.00 price target on ViaSat and gave the company a “hold” rating in a research report on Sunday, September 10th. Finally, TheStreet downgraded ViaSat from a “b-” rating to a “c” rating in a research report on Wednesday, August 9th. Three analysts have rated the stock with a sell rating, five have given a hold rating and eight have given a buy rating to the stock. The stock currently has an average rating of “Hold” and an average price target of $74.17.
ViaSat (VSAT) traded up $1.60 during mid-day trading on Tuesday, reaching $70.00. The company’s stock had a trading volume of 1,056,100 shares, compared to its average volume of 443,365. The company has a quick ratio of 1.71, a current ratio of 2.26 and a debt-to-equity ratio of 0.37. The stock has a market cap of $3,983.43, a price-to-earnings ratio of 1,368.00 and a beta of 0.74. ViaSat has a 1-year low of $57.75 and a 1-year high of $81.71.
ViaSat (NASDAQ:VSAT) last posted its earnings results on Wednesday, November 8th. The communications equipment provider reported $0.09 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.02 by $0.07. The business had revenue of $393.10 million during the quarter, compared to analyst estimates of $401.83 million. ViaSat had a positive return on equity of 0.13% and a negative net margin of 0.75%. The company’s quarterly revenue was down 1.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.40 EPS. sell-side analysts expect that ViaSat will post -0.92 EPS for the current fiscal year.
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In other news, insider Keven K. Lippert sold 1,200 shares of the business’s stock in a transaction that occurred on Monday, November 13th. The stock was sold at an average price of $69.20, for a total transaction of $83,040.00. Following the transaction, the insider now directly owns 2,949 shares of the company’s stock, valued at $204,070.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Jeffrey M. Nash sold 2,000 shares of the business’s stock in a transaction that occurred on Friday, September 15th. The shares were sold at an average price of $61.91, for a total value of $123,820.00. The disclosure for this sale can be found here. Insiders have sold 121,300 shares of company stock worth $7,657,624 over the last three months. Insiders own 7.70% of the company’s stock.
A number of hedge funds have recently modified their holdings of the stock. World Asset Management Inc grew its stake in ViaSat by 1.7% in the second quarter. World Asset Management Inc now owns 3,279 shares of the communications equipment provider’s stock worth $217,000 after purchasing an additional 56 shares during the period. CrestPoint Capital Management LLC grew its stake in ViaSat by 0.8% in the second quarter. CrestPoint Capital Management LLC now owns 12,500 shares of the communications equipment provider’s stock worth $827,000 after purchasing an additional 100 shares during the period. PNC Financial Services Group Inc. grew its stake in ViaSat by 9.0% in the second quarter. PNC Financial Services Group Inc. now owns 1,582 shares of the communications equipment provider’s stock worth $105,000 after purchasing an additional 131 shares during the period. Teacher Retirement System of Texas grew its stake in ViaSat by 4.0% in the second quarter. Teacher Retirement System of Texas now owns 4,392 shares of the communications equipment provider’s stock worth $291,000 after purchasing an additional 169 shares during the period. Finally, Bronfman E.L. Rothschild L.P. grew its stake in ViaSat by 5.7% in the second quarter. Bronfman E.L. Rothschild L.P. now owns 3,495 shares of the communications equipment provider’s stock worth $231,000 after purchasing an additional 190 shares during the period. 99.26% of the stock is currently owned by institutional investors.
ViaSat, Inc is engaged in broadband technologies and services. The Company operates through three segments: satellite services, commercial networks and government systems. The satellite services segment provides satellite-based broadband services to consumers, enterprises, commercial airlines and mobile broadband customers primarily in the United States.
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