Why is Globalstar Inc. (GSAT) trading high?

Summary

  • Globalstar Inc. (GSAT) has surged around 44% in the last five days.
  • Mid-cap GSAT is trading in high volume for the past two days, possibly due to the Reddit WallStreetBets forum.
  • Cash and Cash equivalent has grown almost 228% QoQ at the end of March quarter.

GSAT stock has been rallying since the last five days. It saw high traction in intraday trade after it finds mention on the Reddit Wallstreetbets forum and analysts’ ratings for the stock.

Globalstar, Inc. (AMEX: GSAT) is a telecommunication company. Globalstar provides mobile satellite services, including voice and data communication, across the world. Its services are offered through its network of in-orbit satellites and on-ground active stations called gateways. Besides supporting internet of things data transmission, it provides connectivity in disaster-hit areas, where terrestrial wireless and wireless networks do not work or are not operational.

GSAT is headquartered in Covington, Louisiana. Its market capitalization is US$3.33 billion.

It generated revenue of US$26.9 million and net loss of US$36.3 million for the quarter ended March 31, 2021, compared to US$38.2 million in the corresponding quarter of the previous year. Net loss diluted per share remained the same YoY at US$0.02 for the March quarter.

The company’s non-current liabilities have increased slightly at US$363.6 million in the March quarter compared to US$350.8 in the quarter ended December 31, 2020.

Cash and cash equivalents were US$55.7 million and US$17 million in the quarters ended March 31, 2021, and December 31, 2020, respectively.

Globalstar Inc. was founded in 2003 and has 346 employees.

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Source: Pixabay

It generates revenue from two segments: service revenue and subscriber equipment sales. In the March quarter, service revenue constituted approximately 85% and the rest 15% came from subscription equipment.

It generated nearly 71% of its service revenue for the March quarter in the US alone, while Canada, Europe, and Central and South America, contributed the rest.

GSAT stock price increased by 36% in the last one month and nearly 489% in the last one year. GSAT has been witnessing a huge jump in trading volume for the past two days at 156,985,600 and 161,047,100, respectively.

After surging 23.18% at the close of June 22, today again it was trading 5.91% up at US$1.97 as of June 23, 2021, at 9:14 am ET in premarket.

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