ViaSat (VSAT) Stock Rating Lowered by Zacks Investment Research
ViaSat (NASDAQ:VSAT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Saturday.
According to Zacks, “ViaSat’s financials have been hurt by escalating research and development costs, and costs related to the ViaSat-2 service launch activities in recent times. High R&D and ramp-up costs remain a major headwind to the company’s margins in the near term. 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. Moreover, seasonality in satellite service segment as well as strong competition continues to be headwinds for the company. Although the company’s acquisition strategy has significant long-term impact, they give rise to integration risks in the near term. However, steady growth in in-flight connectivity services, mobile broadband, consumer ARPU gains and cost-reduction initiatives proved conducive to growth.”
VSAT has been the subject of a number of other research reports. Royal Bank of Canada decreased their price target on shares of ViaSat from $50.00 to $48.00 and set an “underperform” rating for the company in a research report on Thursday, October 5th. Morgan Stanley started coverage on shares of ViaSat in a research report on Friday, December 15th. They set an “equal weight” rating and a $78.00 price target for the company. Needham & Company LLC raised shares of 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, November 10th. B. Riley reissued a “buy” rating and set a $89.00 price target on shares of ViaSat in a research report on Thursday, November 9th. Finally, BidaskClub raised shares of ViaSat from a “hold” rating to a “buy” rating in a research report on Saturday, December 30th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and seven have given a buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $73.75.
ViaSat (NASDAQ:VSAT) last released its quarterly earnings results on Wednesday, November 8th. The communications equipment provider reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.07. ViaSat had a negative net margin of 0.75% and a positive return on equity of 0.13%. The business had revenue of $393.10 million during the quarter, compared to the consensus estimate of $401.83 million. During the same quarter last year, the company earned $0.40 earnings per share. The business’s quarterly revenue was down 1.5% compared to the same quarter last year. research analysts forecast that ViaSat will post -0.98 EPS for the current fiscal year.
In other ViaSat news, insider Keven K. Lippert sold 1,200 shares of ViaSat stock in a transaction on Monday, November 13th. The shares were sold at an average price of $69.20, for a total value of $83,040.00. Following the completion of the transaction, the insider now owns 2,949 shares of the company’s stock, valued at $204,070.80. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director John P. Stenbit sold 800 shares of ViaSat stock in a transaction on Tuesday, January 2nd. The stock was sold at an average price of $74.86, for a total transaction of $59,888.00. Following the completion of the transaction, the director now directly owns 10,400 shares of the company’s stock, valued at approximately $778,544. The disclosure for this sale can be found here. In the last ninety days, insiders sold 22,400 shares of company stock valued at $1,616,597. 7.70% of the stock is currently owned by corporate insiders.
Institutional investors have recently added to or reduced their stakes in the business. Bronfman E.L. Rothschild L.P. boosted its holdings in shares of ViaSat by 0.9% during the third quarter. Bronfman E.L. Rothschild L.P. now owns 2,765 shares of the communications equipment provider’s stock valued at $206,000 after acquiring an additional 25 shares during the period. LS Investment Advisors LLC boosted its holdings in shares of ViaSat by 1.5% during the first quarter. LS Investment Advisors LLC now owns 3,585 shares of the communications equipment provider’s stock valued at $229,000 after acquiring an additional 52 shares during the period. World Asset Management Inc boosted its holdings in shares of ViaSat by 1.7% during the second quarter. World Asset Management Inc now owns 3,279 shares of the communications equipment provider’s stock valued at $217,000 after acquiring an additional 56 shares during the period. Envestnet Asset Management Inc. boosted its holdings in shares of ViaSat by 1.2% during the first quarter. Envestnet Asset Management Inc. now owns 5,518 shares of the communications equipment provider’s stock valued at $405,000 after acquiring an additional 66 shares during the period. Finally, Arizona State Retirement System boosted its holdings in shares of ViaSat by 0.5% during the third quarter. Arizona State Retirement System now owns 19,200 shares of the communications equipment provider’s stock valued at $1,433,000 after acquiring an additional 100 shares during the period. 99.42% of the stock is owned by hedge funds and other institutional investors.
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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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