Gogo (NASDAQ:GOGO) Shares Gap Down Following Weak Earnings

Shares of Gogo Inc. (NASDAQ:GOGO) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $4.46, but opened at $3.38. Gogo shares last traded at $3.7090, with a volume of 478,358 shares changing hands.

The technology company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.03). The firm had revenue of $222.81 million for the quarter, compared to analysts’ expectations of $229.35 million. Gogo had a positive return on equity of 22.55% and a negative net margin of 0.09%.Gogo’s revenue was down 1.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.09 earnings per share.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on GOGO. Weiss Ratings raised Gogo from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday. Morgan Stanley lowered their price target on Gogo from $8.00 to $7.00 and set an “equal weight” rating on the stock in a research note on Thursday, May 21st. Roth Capital restated a “buy” rating on shares of Gogo in a research note on Friday. Finally, Wall Street Zen cut Gogo from a “hold” rating to a “sell” rating in a report on Saturday. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Gogo has a consensus rating of “Hold” and an average target price of $8.50.

Hedge Funds Weigh In On Gogo

Hedge funds and other institutional investors have recently bought and sold shares of the business. Nantahala Capital Management LLC bought a new position in shares of Gogo in the 4th quarter worth $31,654,000. BlackRock Inc. bought a new stake in Gogo in the second quarter valued at about $18,984,000. Bank of America Corp DE increased its holdings in Gogo by 244.1% in the first quarter. Bank of America Corp DE now owns 5,340,615 shares of the technology company’s stock valued at $21,469,000 after purchasing an additional 3,788,659 shares during the last quarter. Millennium Management LLC lifted its stake in Gogo by 774.0% in the fourth quarter. Millennium Management LLC now owns 2,355,573 shares of the technology company’s stock valued at $10,977,000 after buying an additional 2,086,042 shares during the period. Finally, Balyasny Asset Management L.P. acquired a new position in Gogo in the fourth quarter valued at about $5,250,000. 69.60% of the stock is owned by institutional investors.

Gogo Stock Performance

The company has a quick ratio of 1.27, a current ratio of 1.73 and a debt-to-equity ratio of 6.74. The stock has a market cap of $490.92 million, a P/E ratio of 363.00 and a beta of 1.13. The stock has a fifty day simple moving average of $3.68 and a 200-day simple moving average of $4.16.

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.