Globalstar Inc (GSAT) Stock Rockets, Hits 2-Month High

Positive analyst coverage of a stock almost always lead to a jump in the share price and hence, it is no surprise that the Globalstar Inc (NYSEAMERICAN:GSAT) stock has shot up by 25% this morning.

Mike Crawford, who is an analyst at B. Riley Securities gave the Globalstar stock a buy rating and set the target price at $3.25 a share. It is important for investors to take a look at the rationale behind this rating before they make a decision one way or another. Crawford stated that for many years the company had been in a state of transition but at long last the company might now be poised to see an upside to its spectrum and satellite system assets.

He went on to state that this is the year in which it might be the right time to get into the stock because the wider market has not yet realised the change in the Globalstar’s direction. The analyst stated that for many years the company had a reputation of being over leveraged and a struggling entity. However, the high risk phase in its history might now be over and Globalstar might be entering a phase in which it might be able to monetise its assets, according to Crawford. 

Market Reaction:

As of 12:08, GSAT stock soared 25% to $1.61 with more than 102  million shares, compared to  its average volume of 19.25 million shares. The stock has moved within a range of $1.3700 – 1.6600 after opening the trade at $1.38. Over the past 52-week, the stock has been trading within a range of $0.2900 – 2.9800.

Moving Averages

+/- EMA(20)1.33 (+21.80%)
+/- SMA(50)1.24 (+30.65%)
+/- SMA(200)0.91 (+78.02%)

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