Gogo (NASDAQ:GOGO) Shares Gap Down on Disappointing Earnings

Shares of Gogo Inc. (NASDAQ:GOGO) gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $4.35, but opened at $4.06. Gogo shares last traded at $4.2650, with a volume of 519,285 shares trading hands.

The technology company reported ($0.07) EPS for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.09). Gogo had a negative net margin of 0.65% and a positive return on equity of 71.74%. The business had revenue of $230.56 million for the quarter. During the same quarter in the previous year, the business earned ($0.22) EPS. The firm’s revenue for the quarter was up 67.3% on a year-over-year basis.

Analysts Set New Price Targets

GOGO has been the subject of several research analyst reports. William Blair downgraded Gogo from an “outperform” rating to a “market perform” rating in a research note on Tuesday, December 9th. Weiss Ratings restated a “sell (d)” rating on shares of Gogo in a research report on Monday, December 29th. Finally, Morgan Stanley set a $8.00 price objective on shares of Gogo in a report on Friday, January 16th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $12.25.

Insiders Place Their Bets

In other Gogo news, insider Oakleigh Thorne bought 170,000 shares of the stock in a transaction on Friday, December 12th. The shares were bought at an average price of $5.34 per share, with a total value of $907,800.00. Following the purchase, the insider directly owned 954,098 shares in the company, valued at $5,094,883.32. This trade represents a 21.68% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 25.78% of the company’s stock.

Hedge Funds Weigh In On Gogo

Hedge funds and other institutional investors have recently modified their holdings of the business. Alpine Global Management LLC acquired a new position in Gogo during the fourth quarter worth about $182,000. Aristides Capital LLC purchased a new position in Gogo in the 4th quarter worth approximately $182,000. Virtu Financial LLC acquired a new position in shares of Gogo during the 4th quarter worth approximately $437,000. Invesco Ltd. grew its position in shares of Gogo by 49.0% in the fourth quarter. Invesco Ltd. now owns 795,707 shares of the technology company’s stock valued at $3,708,000 after purchasing an additional 261,672 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. purchased a new stake in shares of Gogo in the fourth quarter valued at approximately $294,000. 69.60% of the stock is owned by hedge funds and other institutional investors.

Gogo Stock Performance

The stock has a market cap of $566.19 million, a price-to-earnings ratio of 42.30 and a beta of 1.04. The company has a debt-to-equity ratio of 7.79, a current ratio of 1.74 and a quick ratio of 1.40. The firm has a fifty day moving average of $4.56 and a 200 day moving average of $7.25.

About Gogo

Gogo Inc is a leading provider of in-flight connectivity and entertainment solutions for commercial and business aviation. The company specializes in delivering broadband internet, voice and text services, and streaming entertainment to passengers at 35,000 feet. Gogo’s offerings include both air-to-ground (ATG) networks and satellite-based connectivity, enabling reliable in-flight internet access across a range of aircraft types.

Gogo’s ATG network spans the United States and portions of Canada, using ground towers to transmit data signals directly to equipped aircraft.