ViaSat, Inc. (NASDAQ:VSAT) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “ViaSat’s second-quarter fiscal 2018 adjusted earnings beat the Zacks Consensus Estimate by a whopping 250% but fell year over year, hurt by escalating research and development costs, and costs related to the ViaSat-2 service launch activities. High R&D and ramp-up costs remain a major headwind to the company’s margins in the near term. The company recorded terrific growth in government business, which was somewhat offset by contraction in Commercial Networks revenues. Steady growth in in-flight connectivity services, mobile broadband, consumer ARPU gains and cost-reduction initiatives proved conducive to growth. ViaSat shares have outperformed the industry’s average return as well, over the past six months. However, persistent weakness in the Commercial Networks segment, seasonality of demand, strong competition and huge rise in R&D expenses continue to be overhangs for the company’s profitability.”
A number of other research analysts also recently issued reports on the stock. Royal Bank Of Canada cut their target price on shares of ViaSat from $50.00 to $48.00 and set an “underperform” rating on the stock in a research report on Thursday, October 5th. Jefferies Group LLC set a $67.00 target price on shares of ViaSat and gave the company a “hold” rating in a research report on Sunday, September 10th. Needham & Company LLC upgraded shares of ViaSat from a “hold” rating to a “buy” rating and set a $78.00 target price on the stock in a research report on Friday, November 10th. B. Riley restated a “buy” rating and set a $89.00 target price on shares of ViaSat in a research report on Thursday, November 9th. Finally, TheStreet downgraded shares of ViaSat from a “b-” rating to a “c” rating in a research report on Wednesday, August 9th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and eight have given a buy rating to the stock. ViaSat currently has an average rating of “Hold” and an average price target of $74.17.
Shares of ViaSat (NASDAQ VSAT) traded up $1.82 during midday trading on Tuesday, reaching $74.05. 220,385 shares of the company traded hands, compared to its average volume of 447,275. The firm has a market cap of $4,245.49, a P/E ratio of 1,458.00 and a beta of 0.74. The company has a current ratio of 2.26, a quick ratio of 1.71 and a debt-to-equity ratio of 0.37. ViaSat has a 1-year low of $57.75 and a 1-year high of $76.87.
ViaSat (NASDAQ:VSAT) last issued its quarterly earnings results on Wednesday, November 8th. The communications equipment provider reported $0.09 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.02 by $0.07. The business had revenue of $393.10 million for the quarter, compared to the consensus estimate of $401.83 million. ViaSat had a negative net margin of 0.75% and a positive return on equity of 0.13%. The firm’s quarterly revenue was down 1.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.40 EPS. research analysts predict that ViaSat will post -0.98 earnings per share for the current year.
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In other news, insider Keven K. Lippert sold 1,200 shares of the company’s stock in a transaction dated Monday, November 13th. The stock was sold at an average price of $69.20, for a total value of $83,040.00. Following the completion of the sale, the insider now directly owns 2,949 shares of the company’s stock, valued at approximately $204,070.80. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Jeffrey M. Nash sold 2,000 shares of the company’s stock in a transaction dated Friday, September 15th. The shares were sold at an average price of $61.91, for a total value of $123,820.00. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 121,300 shares of company stock valued at $7,657,624. 7.70% of the stock is currently owned by company insiders.
Several hedge funds have recently made changes to their positions in VSAT. PNC Financial Services Group Inc. increased its stake in shares of ViaSat by 9.0% in the 2nd quarter. PNC Financial Services Group Inc. now owns 1,582 shares of the communications equipment provider’s stock valued at $105,000 after acquiring an additional 131 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in ViaSat by 13.4% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,822 shares of the communications equipment provider’s stock worth $121,000 after purchasing an additional 216 shares in the last quarter. Virtu KCG Holdings LLC bought a new stake in ViaSat during the 2nd quarter worth approximately $203,000. Shelton Capital Management bought a new stake in ViaSat during the 2nd quarter worth approximately $206,000. Finally, Balter Liquid Alternatives LLC bought a new stake in ViaSat during the 2nd quarter worth approximately $208,000. 99.26% of the stock is owned by institutional investors.
ViaSat Company Profile
ViaSat, Inc is engaged in broadband technologies and services. The Company operates through three segments: satellite services, commercial networks and government systems. The satellite services segment provides satellite-based broadband services to consumers, enterprises, commercial airlines and mobile broadband customers primarily in the United States.
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