Gogo (NASDAQ:GOGO) Shares Down 27.3% on Analyst Downgrade

Gogo Inc (NASDAQ:GOGO) shares traded down 27.3% on Wednesday after Morgan Stanley lowered their price target on the stock from $3.00 to $1.00. Morgan Stanley currently has an underweight rating on the stock. Gogo traded as low as $2.25 and last traded at $2.29, 2,696,225 shares traded hands during mid-day trading. An increase of 2% from the average session volume of 2,647,063 shares. The stock had previously closed at $3.15.

GOGO has been the topic of several other reports. ValuEngine raised shares of Gogo from a “sell” rating to a “hold” rating in a research report on Wednesday, February 26th. Zacks Investment Research lowered shares of Gogo from a “hold” rating to a “sell” rating in a research report on Friday, February 7th. Finally, BidaskClub lowered shares of Gogo from a “sell” rating to a “strong sell” rating in a research report on Tuesday, February 18th. Three research analysts have rated the stock with a sell rating, one has given a hold rating and three have issued a buy rating to the company’s stock. Gogo currently has a consensus rating of “Hold” and an average price target of $6.06.

Several hedge funds have recently added to or reduced their stakes in the stock. Geode Capital Management LLC grew its stake in shares of Gogo by 4.3% in the fourth quarter. Geode Capital Management LLC now owns 790,757 shares of the technology company’s stock valued at $5,060,000 after acquiring an additional 32,446 shares in the last quarter. AXA acquired a new position in shares of Gogo in the fourth quarter valued at about $242,000. Alberta Investment Management Corp acquired a new position in shares of Gogo in the fourth quarter valued at about $73,000. Point72 Hong Kong Ltd acquired a new position in shares of Gogo in the fourth quarter valued at about $29,000. Finally, Senator Investment Group LP acquired a new position in shares of Gogo in the fourth quarter valued at about $1,325,000. Institutional investors and hedge funds own 63.48% of the company’s stock.

The company’s 50 day moving average is $3.73 and its 200 day moving average is $5.27. The firm has a market capitalization of $198.30 million, a price-to-earnings ratio of -1.27 and a beta of 1.18.

Gogo (NASDAQ:GOGO) last released its quarterly earnings results on Friday, March 13th. The technology company reported ($0.28) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.49) by $0.21. The business had revenue of $221.30 million during the quarter, compared to analyst estimates of $206.53 million. The company’s revenue was up 1.9% on a year-over-year basis. During the same quarter last year, the company posted ($0.74) earnings per share. Sell-side analysts forecast that Gogo Inc will post -1.18 earnings per share for the current fiscal year.

About Gogo (NASDAQ:GOGO)

Gogo Inc, through its subsidiaries, provides inflight broadband connectivity and wireless entertainment services to the aviation industry in the United States and internationally. It operates through three segments: Commercial Aviation North America (CA-NA), Commercial Aviation Rest of World (CA-ROW), and Business Aviation (BA).

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