EchoStar Corporation (NASDAQ: SATS) Volatility Spurs A Quest For Clarity


EdgePoint Investment Group, Inc. recently announced the acquisition of new stake in EchoStar Corporation (NASDAQ:SATS). The institutional investor has increased its shareholding in the Technology company by 0.48% to 5.63 million shares with purchase of 26937.0 shares. This fresh investment now brings its stake to 11.23% valued currently at $175.57 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.1 million to 4.46 million shares. And Dimensional Fund Advisors LP has lifted its position by 0.93% or 17370.0 shares – to 1.88 million shares.

With over 0.27 million EchoStar Corporation (SATS) shares trading Tuesday and a closing price of $25.42 on the day, the dollar volume was approximately $6.88 million. The shares have shown a negative weekly performance of -9.05% and its price on 07/07/20 lost nearly -3.89%. Currently, there are 97.81M common shares owned by the public and among those 47.91M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 2 analysts who have offered their price forecasts for SATS have a consensus price objective of $45.00. The analysts have set the share’s price value over the next 12 months at a high of $54.00 and a low of $36.00 should the stock experience a downside. Incidentally, analysts’ outlook for the EchoStar Corporation stock is 2.00 for the next 12 months. The average price target is 43.51% above its last price level and an upside to the estimated low will see the stock gain 29.39% over that period. But an upside of 52.93% will see the stock hit the forecast high price target while mean target price for the stock is $45.00.

Insiders at the company have transacted a total of 13 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 5 of these insider trades were purchases, accounting for 226,934 shares. Insider sales of the common stock occurred on 8 occasions, with total insider shares sold totaling 216,763 shares.

The top 3 mutual fund holders in EchoStar Corporation are EdgePoint Global Portfolio, EdgePoint Global Growth & Income, and Putnam Capital Spectrum Fund. EdgePoint Global Portfolio owns 2.83 million shares of the company’s stock, all valued at over $88.1 million. The company has a total holdings of about 5.63% of the shares outstanding. EdgePoint Global Growth & Income has total holdings of 1.71 million shares valued at over $53.14 million and representing 3.40% of the shares outstanding. Putnam Capital Spectrum Fund sold -0.46 million shares to bring its total holdings to over 1.53 million shares at a value of $47.7 million. Putnam Capital Spectrum Fund now owns shares totaling to 3.05% of the shares outstanding.

Shares of EchoStar Corporation (NASDAQ: SATS) opened at $26.25, down -$0.2 from a prior closing price of $26.45. However, the script later closed the day at $25.42, down -3.89%. The company’s stock has a 5-day price change of -9.05% and -19.66% over the past three months. SATS shares are trading -41.31% year to date (YTD), with the 12-month market performance down to -31.05% lower. It has a 12-month low price of $25.23 and touched a high of $45.15 over the same period. Currently, 0.27 million shares have been traded, compared to an average intraday trading volume of 365.40K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -13.68%, -15.46%, and -29.41% respectively.

Institutional ownership of EchoStar Corporation (NASDAQ: SATS) shares accounts for 90.90% of the company’s 97.81M shares outstanding. Mutual fund holders own 41.46%, while other institutional holders and individual stakeholders account for 48.81% and 4.66% respectively.

It has a market capitalization of $2.57B and a beta (3y monthly) value of 0.68. The stock’s earnings-per-share (ttm) stands at -$1.55. The company has a Quick Ratio of 6.00 with the debt-to-equity ratio at 0.01. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.75% over the week and 4.36% over the month.

Analysts forecast that EchoStar Corporation (SATS) will achieve an EPS of -$0.21 for the current quarter, -$0.17 for the next quarter and -$0.6 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.3 while analysts give the company a high EPS estimate of -$0.11. Comparatively, EPS for the current quarter was -$0.06 a year ago. Earnings per share for the fiscal year are expected to increase by 24.10%, and 41.70% over the next financial year. EPS should grow at an annualized rate of 5.00% over the next five years, compared to -21.00% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 2 brokerage firm advisors rate EchoStar Corporation (SATS) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 1 of the 2 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the SATS, a number of firms have released research notes about the stock. Citigroup stated their Neutral rating for the stock in a research note on October 04, 2019, with the firm’s price target at $47.79-$44. Daiwa Securities coverage for the EchoStar Corporation (SATS) stock in a research note released on May 17, 2019 offered a Neutral rating with a price target of. Raymond James was of a view on May 11, 2018 that the stock is Strong Buy, while Jefferies gave the stock Hold rating on September 08, 2017 $65. Citigroup on their part issued Sell rating on April 09, 2010.


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