Sachem Head Capital Management LP Purchases New Position in EchoStar Corporation $SATS

Sachem Head Capital Management LP bought a new position in shares of EchoStar Corporation (NASDAQ:SATS) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 5,227,400 shares of the communications equipment provider’s stock, valued at approximately $568,218,000. EchoStar accounts for about 13.3% of Sachem Head Capital Management LP’s portfolio, making the stock its largest position. Sachem Head Capital Management LP owned approximately 1.82% of EchoStar as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Hollencrest Capital Management bought a new position in shares of EchoStar in the 4th quarter worth $26,000. CoreCap Advisors LLC bought a new position in shares of EchoStar in the 4th quarter worth $28,000. Rosenberg Matthew Hamilton bought a new position in shares of EchoStar during the 4th quarter valued at $29,000. Tucker Asset Management LLC bought a new position in shares of EchoStar during the 4th quarter valued at $42,000. Finally, BOKF NA grew its holdings in shares of EchoStar by 300.0% during the 4th quarter. BOKF NA now owns 400 shares of the communications equipment provider’s stock valued at $43,000 after purchasing an additional 300 shares during the last quarter. Institutional investors own 33.62% of the company’s stock.

Key Headlines Impacting EchoStar

Here are the key news stories impacting EchoStar this week:

• Positive Sentiment: EchoStar remains closely tied to enthusiasm around the SpaceX IPO, and that relationship helped drive a sharp run-up in the stock earlier in the week as traders speculated on the value of EchoStar’s SpaceX stake. All Eyes on SpaceX IPO Today
• Positive Sentiment: Analyst targets on SATS remain above the current share price, with recent estimates implying upside if the company can stabilize operations and reduce balance-sheet risk. SpaceX IPO Crowds Pre-Market Sentiment
• Neutral Sentiment: The SpaceX IPO is dominating market chatter and has increased trading interest in Space-related names, which has boosted volatility in EchoStar rather than changing the company’s fundamentals directly. Stock Movers Ahead of SpaceX Debut
• Negative Sentiment: EchoStar disclosed that its DISH DBS subsidiary missed about $183 million in interest payments due June 1, which is a default under the indentures unless cured during the grace period; that has renewed default and liquidity worries. EchoStar shares slide as missed interest payment rekindles default and liquidity concerns
• Negative Sentiment: After the recent surge, traders appear to be taking profits, and Friday’s weakness reflects a pullback from the SpaceX-linked rally combined with renewed concern about refinancing risk. Stock Market Today, June 12: EchoStar Falls as SpaceX-Linked Rally Meets DISH DBS Payment Risk

Insider Activity at EchoStar

In other news, CEO Hamid Akhavan sold 52,586 shares of the firm’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $121.00, for a total value of $6,362,906.00. Following the completion of the sale, the chief executive officer directly owned 865,633 shares of the company’s stock, valued at approximately $104,741,593. This trade represents a 5.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 55.70% of the company’s stock.

EchoStar Stock Performance

NASDAQ:SATS opened at $114.08 on Monday. The company has a 50-day moving average price of $126.01 and a 200-day moving average price of $114.82. EchoStar Corporation has a 12 month low of $16.73 and a 12 month high of $147.25. The company has a current ratio of 0.30, a quick ratio of 0.27 and a debt-to-equity ratio of 3.17. The stock has a market cap of $33.06 billion, a price-to-earnings ratio of -2.28 and a beta of 0.95.

EchoStar (NASDAQ:SATS) last posted its earnings results on Saturday, May 9th. The communications equipment provider reported ($0.51) EPS for the quarter, missing the consensus estimate of ($0.48) by ($0.03). EchoStar had a negative return on equity of 4.80% and a negative net margin of 97.56%.The company had revenue of $3.67 billion during the quarter, compared to analysts’ expectations of $3.65 billion. During the same period in the prior year, the business posted ($0.71) earnings per share.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Wall Street Zen raised shares of EchoStar from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Williams Trading set a $155.00 target price on shares of EchoStar in a report on Monday, May 18th. UBS Group increased their target price on shares of EchoStar from $125.00 to $127.00 and gave the company a “neutral” rating in a report on Tuesday, March 3rd. Zacks Research cut shares of EchoStar from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, March 10th. Finally, TD Cowen increased their price target on shares of EchoStar from $129.00 to $155.00 and gave the company a “buy” rating in a research report on Monday, May 18th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, EchoStar has a consensus rating of “Hold” and an average target price of $137.14.

About EchoStar

EchoStar Corporation (NASDAQ: SATS) is a global provider of satellite communication solutions, offering a suite of broadband and video delivery services to consumer, enterprise and government customers. The company operates two principal business segments: Broadband and Video. Through its Broadband segment, EchoStar delivers high-speed satellite internet access, managed network services and ground infrastructure for residential, commercial and rural markets. Its Video segment provides satellite fleet operations, teleport facilities and capacity-leasing services to video distributors and content providers.

In the Broadband segment, EchoStar’s Hughes Network Systems division designs and manufactures satellite broadband equipment, including user terminals and gateways, and develops advanced network management technologies.