EchoStar (NASDAQ:SATS) Sees Large Volume Increase – Time to Buy?

Shares of EchoStar Corporation (NASDAQ:SATS) saw strong trading volume on Friday . 8,811,510 shares traded hands during trading, an increase of 37% from the previous session’s volume of 6,434,893 shares.The stock last traded at $116.5910 and had previously closed at $128.13.

EchoStar News Roundup

Here are the key news stories impacting EchoStar this week:

• Positive Sentiment: EchoStar remains closely tied to enthusiasm around the SpaceX IPO, and that relationship helped drive a sharp run-up in the stock earlier in the week as traders speculated on the value of EchoStar’s SpaceX stake. All Eyes on SpaceX IPO Today
• Positive Sentiment: Analyst targets on SATS remain above the current share price, with recent estimates implying upside if the company can stabilize operations and reduce balance-sheet risk. SpaceX IPO Crowds Pre-Market Sentiment
• Neutral Sentiment: The SpaceX IPO is dominating market chatter and has increased trading interest in Space-related names, which has boosted volatility in EchoStar rather than changing the company’s fundamentals directly. Stock Movers Ahead of SpaceX Debut
• Negative Sentiment: EchoStar disclosed that its DISH DBS subsidiary missed about $183 million in interest payments due June 1, which is a default under the indentures unless cured during the grace period; that has renewed default and liquidity worries. EchoStar shares slide as missed interest payment rekindles default and liquidity concerns
• Negative Sentiment: After the recent surge, traders appear to be taking profits, and Friday’s weakness reflects a pullback from the SpaceX-linked rally combined with renewed concern about refinancing risk. Stock Market Today, June 12: EchoStar Falls as SpaceX-Linked Rally Meets DISH DBS Payment Risk

Analysts Set New Price Targets

A number of research analysts have commented on the stock. New Street Research assumed coverage on shares of EchoStar in a research report on Wednesday, May 13th. They set a “buy” rating and a $161.00 price target on the stock. Zacks Research cut shares of EchoStar from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, March 10th. Williams Trading set a $155.00 target price on shares of EchoStar in a report on Monday, May 18th. UBS Group raised their target price on shares of EchoStar from $125.00 to $127.00 and gave the stock a “neutral” rating in a report on Tuesday, March 3rd. Finally, Wall Street Zen upgraded shares of EchoStar from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $137.14.

EchoStar Price Performance

The company has a quick ratio of 0.27, a current ratio of 0.30 and a debt-to-equity ratio of 3.17. The stock has a market cap of $33.06 billion, a P/E ratio of -2.28 and a beta of 0.94. The firm’s fifty day moving average price is $126.01 and its 200-day moving average price is $114.51.

EchoStar (NASDAQ:SATS) last announced its quarterly earnings results on Saturday, May 9th. The communications equipment provider reported ($0.51) EPS for the quarter, missing analysts’ consensus estimates of ($0.48) by ($0.03). EchoStar had a negative return on equity of 4.80% and a negative net margin of 97.56%.The business had revenue of $3.67 billion during the quarter, compared to analysts’ expectations of $3.65 billion. During the same period in the previous year, the business earned ($0.71) EPS.

Insider Buying and Selling

In related news, CEO Hamid Akhavan sold 52,586 shares of the firm’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $121.00, for a total value of $6,362,906.00. Following the completion of the sale, the chief executive officer owned 865,633 shares of the company’s stock, valued at $104,741,593. This trade represents a 5.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 55.90% of the stock is owned by insiders.

Institutional Trading of EchoStar

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SATS. DLD Asset Management LP purchased a new stake in EchoStar in the third quarter worth $2,481,700,000. Sachem Head Capital Management LP purchased a new position in EchoStar during the fourth quarter valued at $568,218,000. Icahn Carl C purchased a new position in EchoStar during the third quarter valued at $332,513,000. Norges Bank purchased a new position in EchoStar during the fourth quarter valued at $182,111,000. Finally, Contrarius Group Holdings Ltd purchased a new position in EchoStar during the third quarter valued at $98,819,000. Hedge funds and other institutional investors own 33.62% of the company’s stock.

About EchoStar

EchoStar Corporation (NASDAQ: SATS) is a global provider of satellite communication solutions, offering a suite of broadband and video delivery services to consumer, enterprise and government customers. The company operates two principal business segments: Broadband and Video. Through its Broadband segment, EchoStar delivers high-speed satellite internet access, managed network services and ground infrastructure for residential, commercial and rural markets. Its Video segment provides satellite fleet operations, teleport facilities and capacity-leasing services to video distributors and content providers.

In the Broadband segment, EchoStar’s Hughes Network Systems division designs and manufactures satellite broadband equipment, including user terminals and gateways, and develops advanced network management technologies.