Echostar CORP (NASDAQ:ECHO – Get Free Report) was the target of some unusual options trading activity on Tuesday. Investors acquired 28,279 call options on the company. This is an increase of approximately 39% compared to the average daily volume of 20,350 call options.
Echostar Stock Up 5.8%
Echostar stock traded up $4.97 during trading hours on Tuesday, hitting $90.60. 2,158,013 shares of the company traded hands, compared to its average volume of 7,176,708. Echostar has a 1-year low of $26.14 and a 1-year high of $147.25. The stock has a market cap of $26.26 billion, a price-to-earnings ratio of -1.80 and a beta of 1.00. The company has a current ratio of 0.30, a quick ratio of 0.27 and a debt-to-equity ratio of 3.17.
Echostar (NASDAQ:ECHO – Get Free Report) last posted its quarterly earnings data on Saturday, May 9th. The company reported ($0.51) earnings per share (EPS) for the quarter. Echostar had a negative net margin of 97.56% and a negative return on equity of 4.80%. The company had revenue of $3.67 billion during the quarter. On average, analysts expect that Echostar will post -1.75 EPS for the current fiscal year.
Key Headlines Impacting Echostar
- Positive Sentiment: EchoStar reported second-quarter adjusted earnings of $0.19 per share, surpassing the consensus estimate for a $0.29 loss and improving from a $1.06 loss a year earlier. Reported EPS was also boosted by significant items. EchoStar Surpasses Q2 Earnings and Revenue Estimates
- Positive Sentiment: The earnings update supports a more constructive investment case for ECHO, with analysts highlighting improved profitability and the possibility that the company’s restructuring and wireless assets could create value. EchoStar Q2 Investment Case
- Neutral Sentiment: Second-quarter revenue was approximately $3.58 billion, slightly below expectations and down about 4% year over year. The mixed results mean investors are weighing earnings improvement against continued top-line pressure. EchoStar Second-Quarter Financial Results
- Negative Sentiment: EchoStar’s Hughes satellite-internet subsidiary filed for Chapter 11 bankruptcy protection as roughly $1.5 billion of debt comes due. The company indicated expected liabilities in the range of $5 billion to $7 billion, increasing uncertainty around restructuring costs and creditor recoveries. EchoStar Hughes Liability Range
- Negative Sentiment: Hughes faces intensifying competition from SpaceX’s Starlink, while the bankruptcy process is expected to include workforce reductions of about one-third of its U.S. employees and an executive exodus. EchoStar also lost 241,000 pay-TV subscribers during the quarter, underscoring pressure across legacy businesses. HughesNet Competition from Starlink
Wall Street Analysts Forecast Growth
Several equities analysts have recently commented on ECHO shares. Raymond James Financial raised Echostar from a “market perform” rating to a “strong-buy” rating and set a $115.00 target price for the company in a report on Friday, July 17th. Williams Trading set a $155.00 target price on Echostar in a research report on Monday, May 18th. Weiss Ratings began coverage on Echostar in a research note on Monday, July 6th. They issued a “sell (d-)” rating on the stock. TD Cowen lowered their price target on shares of Echostar from $155.00 to $130.00 and set a “buy” rating for the company in a research report on Tuesday. Finally, Wall Street Zen raised shares of Echostar from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $132.00.
Check Out Our Latest Analysis on Echostar
Insiders Place Their Bets
In related news, CEO Hamid Akhavan sold 52,586 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $121.00, for a total transaction of $6,362,906.00. Following the sale, the chief executive officer owned 865,633 shares in the company, valued at $104,741,593. This represents a 5.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.00% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On Echostar
Several hedge funds have recently modified their holdings of ECHO. Hollencrest Capital Management acquired a new stake in shares of Echostar in the fourth quarter valued at $26,000. CoreCap Advisors LLC acquired a new position in Echostar during the fourth quarter worth about $28,000. SOA Wealth Advisors LLC. acquired a new position in Echostar during the first quarter worth about $34,000. Pittenger & Anderson Inc. bought a new stake in Echostar in the second quarter worth about $38,000. Finally, NewEdge Advisors LLC raised its position in Echostar by 134.8% in the first quarter. NewEdge Advisors LLC now owns 324 shares of the company’s stock worth $38,000 after acquiring an additional 186 shares in the last quarter. 33.62% of the stock is currently owned by institutional investors and hedge funds.
Echostar Company Profile
EchoStar Corporation is a communications company that provides satellite and wireless services, video distribution, and broadband connectivity solutions. Its business has historically been centered on satellite technology and related services, serving customers through a range of connectivity and network offerings.
The company operates through several segments that support pay-TV, enterprise, government, and consumer communications needs. Its services and technologies have included satellite television distribution, broadband satellite access, network infrastructure, and wireless communications capabilities.
EchoStar was founded in 1980 and has long been associated with satellite communications in the United States.
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