Gogo (NASDAQ:GOGO) Shares Gap Down on Disappointing Earnings

Shares of Gogo Inc. (NASDAQ:GOGO) gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $4.35, but opened at $4.06. Gogo shares last traded at $4.2650, with a volume of 519,285 shares traded.

The technology company reported ($0.07) EPS for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.09). Gogo had a negative net margin of 0.65% and a positive return on equity of 71.74%. The business had revenue of $230.56 million for the quarter. The firm’s quarterly revenue was up 67.3% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.22) EPS.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on GOGO shares. Morgan Stanley set a $8.00 price target on shares of Gogo in a research report on Friday, January 16th. William Blair cut Gogo from an “outperform” rating to a “market perform” rating in a research note on Tuesday, December 9th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Gogo in a research report on Monday, December 29th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $12.25.

Insider Activity at Gogo

In related news, insider Oakleigh Thorne bought 170,000 shares of the company’s stock in a transaction on Friday, December 12th. The shares were acquired at an average cost of $5.34 per share, with a total value of $907,800.00. Following the completion of the acquisition, the insider owned 954,098 shares of the company’s stock, valued at $5,094,883.32. The trade was a 21.68% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 25.78% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Gogo

Several large investors have recently modified their holdings of the stock. LB Partners LLC increased its stake in Gogo by 30.0% during the 3rd quarter. LB Partners LLC now owns 3,228,979 shares of the technology company’s stock valued at $27,737,000 after purchasing an additional 745,000 shares in the last quarter. Hussman Strategic Advisors Inc. purchased a new stake in shares of Gogo during the third quarter valued at approximately $2,345,000. XTX Topco Ltd purchased a new position in Gogo in the 2nd quarter worth approximately $1,018,000. Quantbot Technologies LP bought a new position in Gogo in the 2nd quarter valued at approximately $2,684,000. Finally, Intech Investment Management LLC boosted its stake in Gogo by 129.0% during the 2nd quarter. Intech Investment Management LLC now owns 76,138 shares of the technology company’s stock valued at $1,118,000 after purchasing an additional 42,897 shares during the last quarter. Hedge funds and other institutional investors own 69.60% of the company’s stock.

Gogo Trading Down 2.8%

The firm has a market capitalization of $566.19 million, a PE ratio of 42.30 and a beta of 1.04. The firm has a 50 day simple moving average of $4.56 and a 200 day simple moving average of $7.25. The company has a current ratio of 1.74, a quick ratio of 1.40 and a debt-to-equity ratio of 7.79.

Gogo Company Profile

Gogo Inc is a leading provider of in-flight connectivity and entertainment solutions for commercial and business aviation. The company specializes in delivering broadband internet, voice and text services, and streaming entertainment to passengers at 35,000 feet. Gogo’s offerings include both air-to-ground (ATG) networks and satellite-based connectivity, enabling reliable in-flight internet access across a range of aircraft types.

Gogo’s ATG network spans the United States and portions of Canada, using ground towers to transmit data signals directly to equipped aircraft.