Viasat Stock Drops Despite New Contract with Lockheed Martin
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Fool
Viasat's stock fell 11.9% by midday Monday, crossing below its 5-day SMA, amid market concerns about its future performance.
The drop occurred despite Viasat announcing a subcontract with Lockheed Martin to provide high-bandwidth Hybrid SATCOM technology for NOAA's C-130J Hurricane Hunter aircraft. This contract enhances Viasat's application potential in meteorological monitoring, although the initial contract value remains undisclosed. Additionally, Needham analyst raised Viasat's price target to $90, indicating a 25% upside over the next 12 months, despite the company’s six consecutive years of losses.
The implications of this contract could lead to future orders, but investor confidence remains shaky due to the recent stock volatility and broader market conditions.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy VSAT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on VSAT
Wall Street analysts forecast VSAT stock price to fall
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 72.930
Low
36.00
Averages
43.80
High
52.00
Current: 72.930
Low
36.00
Averages
43.80
High
52.00
About VSAT
Viasat, Inc. is a global communications company. Its segments include communication services and defense and advanced technologies. The communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for residential and enterprise fixed broadband customers. In addition, this segment includes the development and sale of a wide array of advanced satellite and wireless products and terminals that support or enable the provision of fixed and mobile broadband and narrowband services. The defense and advanced technologies segment develops and offers a diverse array of vertically integrated solutions to government and commercial customers, leveraging its core technical competencies in encryption, cybersecurity, tactical gateways, modems and waveforms. Its services are designed to provide customers with the capacity density, market access, speed, bandwidth and responsiveness they need.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
JPMorgan Updates June Investment Recommendations
- Strong Market Performance: U.S. stocks closed May at record highs, with the Nasdaq Composite rising over 8%, the S&P 500 up 5%, and the Dow Jones Industrial Average increasing by 3%, indicating robust performance from technology stocks and reflecting heightened investor confidence in the market.
- Diverse Investment Strategies: JPMorgan compiles its top picks each month across various investment strategies, including growth, income, value, and shorts, ensuring that its investment ideas differ from fundamental ratings to cater to diverse investor needs.
- New Recommendation for Viasat: Viasat, a global provider of high-speed satellite broadband, has been added to JPMorgan's recommendations; despite its stock soaring over 730% in the past year, it dropped 16% in the last two days after filing a shelf registration to sell stock or debt, indicating market uncertainty about its future performance.
- Eli Lilly's Market Dominance: Eli Lilly's renewed focus on vaccines and infectious disease treatments, along with CVS Health restoring coverage for its weight-loss injection Zepbound, further solidifies its market dominance, with its stock hitting an all-time high last Thursday, trading approximately 73% above last August's 52-week low.
See More
SpaceX IPO Could Be the Largest Ever
- Near $2 Trillion Valuation: SpaceX's upcoming IPO is projected to approach a staggering valuation of nearly $2 trillion, potentially making it the largest IPO in history, which has garnered significant investor interest and reflects strong market confidence in its growth prospects.
- Innovative Business Portfolio: With three core businesses in rocket launches, satellite internet, and artificial intelligence, SpaceX appeals to investors seeking high growth, enhancing its attractiveness in the competitive tech landscape.
- ETF Investment Opportunities: Investors can mitigate risk by purchasing exchange-traded funds (ETFs) focused on the space economy, such as Ark Space & Defense Innovation ETF and Procure Space ETF, which may quickly accumulate SpaceX shares post-IPO, providing indirect exposure to the company.
- Strong Market Performance: The Ark Space & Defense ETF has surged 175% over the past three years, while the Procure Space ETF has skyrocketed by 250%, both significantly outperforming the S&P 500, indicating robust demand and investor optimism in the space sector.
See More
SpaceX IPO Sparks Investor Excitement
- Market Valuation Expectations: SpaceX is planning an IPO with a target valuation of nearly $2 trillion, which, if successful, would become the largest IPO in history, drawing significant investor interest and anticipation.
- Diverse Technology Appeal: With involvement in rocket launches, satellite internet, and artificial intelligence, SpaceX's growth potential across these high-tech sectors makes it a popular choice for investors seeking high returns, albeit with associated risks.
- ETF Investment Opportunities: The Ark Space & Defense Innovation ETF and Procure Space ETF may be among the first funds to invest in SpaceX shares, with the former rising 175% over the past three years and the latter achieving a 250% increase, reflecting strong interest in the space economy.
- Risk Management Strategy: By investing in ETFs instead of directly purchasing SpaceX shares, investors can mitigate risks as ETFs diversify investments across multiple related stocks, providing protection when individual stocks underperform while benefiting from overall market growth.
See More
Viasat Stock Drops 11.9% Despite New Contract with Lockheed Martin
- Stock Volatility: Viasat's stock fell 11.9% by midday Monday without an obvious catalyst, indicating market concerns about its future performance, which could undermine investor confidence.
- New Contract Announcement: Viasat revealed a subcontract with Lockheed Martin to provide high-bandwidth Hybrid SATCOM technology for two NOAA C-130J Hurricane Hunter aircraft, enhancing its application potential in meteorological monitoring.
- Potential for Expansion: The contract mentions the possibility of additional aircraft, suggesting Viasat could secure more orders in the future, although the initial contract value remains undisclosed, necessitating close attention to its financial implications.
- Analyst Rating Upgrade: Needham analyst raised Viasat's price target to $90, implying a 25% upside over the next 12 months, highlighting the growth potential of its spectrum assets and defense business, despite the company’s six consecutive years of losses.
See More
MGM Resorts Shares Surge 16% on Acquisition Proposal
- Acquisition Proposal Surge: MGM Resorts International shares surged 16% following an acquisition offer from Barry Diller's People Inc. at $48.30 per share in cash, indicating strong market optimism that could alter the company's control structure.
- Zoom Platform Rebound: Zoom Communications saw its shares jump over 11% after Anthropic, an early investor, confidentially filed for an IPO with regulators, suggesting positive market expectations for investment returns and potentially enhancing Zoom's market position.
- Veeva Systems Strong Performance: Veeva Systems shares rose nearly 9% ahead of its first-quarter earnings report on Wednesday, with FactSet consensus expecting earnings of $2.14 per share and revenue of $857.7 million, both within the company's prior guidance range, indicating business stability.
- Humana Guidance Reaffirmation: Humana's shares increased by 8% after reaffirming its full-year adjusted earnings guidance of at least $9 per share, surpassing the FactSet consensus of $8.93, reflecting the company's strong performance and growth potential in the health insurance market.
See More
Viasat Partners with Lockheed Martin for NOAA Satellite Communications
- Technology Integration: Viasat has been selected by Lockheed Martin to provide satellite communications technology for NOAA's hurricane hunter aircraft, marking the first formal line-fit integration of its Hybrid SATCOM Approach Technology on the C130J platform, enhancing the aircraft's communication capabilities.
- Future Enhancements: The HSA platform is designed to accommodate multiple antenna apertures, enabling multi-network and multi-orbit connectivity, which allows for future enhancements to the C-130J aircraft, increasing its potential applications in meteorological monitoring.
- Contract Details: Although the financial terms of the contract with Lockheed Martin were not disclosed, this collaboration is expected to contribute to mid-single-digit revenue growth for Viasat, further solidifying its position in the satellite communications market.
- Financial Outlook: Viasat anticipates approximately $180 million in free cash flow for fiscal 2027, indicating the company's financial health and growth potential, particularly through partnerships with major defense contractors.
See More
JPMorgan Updates June Investment Recommendations
- Strong Market Performance: U.S. stocks closed May at record highs, with the Nasdaq Composite rising over 8%, the S&P 500 up 5%, and the Dow Jones Industrial Average increasing by 3%, indicating robust performance from technology stocks and reflecting heightened investor confidence in the market.
- Diverse Investment Strategies: JPMorgan compiles its top picks each month across various investment strategies, including growth, income, value, and shorts, ensuring that its investment ideas differ from fundamental ratings to cater to diverse investor needs.
- New Recommendation for Viasat: Viasat, a global provider of high-speed satellite broadband, has been added to JPMorgan's recommendations; despite its stock soaring over 730% in the past year, it dropped 16% in the last two days after filing a shelf registration to sell stock or debt, indicating market uncertainty about its future performance.
- Eli Lilly's Market Dominance: Eli Lilly's renewed focus on vaccines and infectious disease treatments, along with CVS Health restoring coverage for its weight-loss injection Zepbound, further solidifies its market dominance, with its stock hitting an all-time high last Thursday, trading approximately 73% above last August's 52-week low.
See More
SpaceX IPO Could Be the Largest Ever
- Near $2 Trillion Valuation: SpaceX's upcoming IPO is projected to approach a staggering valuation of nearly $2 trillion, potentially making it the largest IPO in history, which has garnered significant investor interest and reflects strong market confidence in its growth prospects.
- Innovative Business Portfolio: With three core businesses in rocket launches, satellite internet, and artificial intelligence, SpaceX appeals to investors seeking high growth, enhancing its attractiveness in the competitive tech landscape.
- ETF Investment Opportunities: Investors can mitigate risk by purchasing exchange-traded funds (ETFs) focused on the space economy, such as Ark Space & Defense Innovation ETF and Procure Space ETF, which may quickly accumulate SpaceX shares post-IPO, providing indirect exposure to the company.
- Strong Market Performance: The Ark Space & Defense ETF has surged 175% over the past three years, while the Procure Space ETF has skyrocketed by 250%, both significantly outperforming the S&P 500, indicating robust demand and investor optimism in the space sector.
See More
SpaceX IPO Sparks Investor Excitement
- Market Valuation Expectations: SpaceX is planning an IPO with a target valuation of nearly $2 trillion, which, if successful, would become the largest IPO in history, drawing significant investor interest and anticipation.
- Diverse Technology Appeal: With involvement in rocket launches, satellite internet, and artificial intelligence, SpaceX's growth potential across these high-tech sectors makes it a popular choice for investors seeking high returns, albeit with associated risks.
- ETF Investment Opportunities: The Ark Space & Defense Innovation ETF and Procure Space ETF may be among the first funds to invest in SpaceX shares, with the former rising 175% over the past three years and the latter achieving a 250% increase, reflecting strong interest in the space economy.
- Risk Management Strategy: By investing in ETFs instead of directly purchasing SpaceX shares, investors can mitigate risks as ETFs diversify investments across multiple related stocks, providing protection when individual stocks underperform while benefiting from overall market growth.
See More
Viasat Stock Drops 11.9% Despite New Contract with Lockheed Martin
- Stock Volatility: Viasat's stock fell 11.9% by midday Monday without an obvious catalyst, indicating market concerns about its future performance, which could undermine investor confidence.
- New Contract Announcement: Viasat revealed a subcontract with Lockheed Martin to provide high-bandwidth Hybrid SATCOM technology for two NOAA C-130J Hurricane Hunter aircraft, enhancing its application potential in meteorological monitoring.
- Potential for Expansion: The contract mentions the possibility of additional aircraft, suggesting Viasat could secure more orders in the future, although the initial contract value remains undisclosed, necessitating close attention to its financial implications.
- Analyst Rating Upgrade: Needham analyst raised Viasat's price target to $90, implying a 25% upside over the next 12 months, highlighting the growth potential of its spectrum assets and defense business, despite the company’s six consecutive years of losses.
See More
MGM Resorts Shares Surge 16% on Acquisition Proposal
- Acquisition Proposal Surge: MGM Resorts International shares surged 16% following an acquisition offer from Barry Diller's People Inc. at $48.30 per share in cash, indicating strong market optimism that could alter the company's control structure.
- Zoom Platform Rebound: Zoom Communications saw its shares jump over 11% after Anthropic, an early investor, confidentially filed for an IPO with regulators, suggesting positive market expectations for investment returns and potentially enhancing Zoom's market position.
- Veeva Systems Strong Performance: Veeva Systems shares rose nearly 9% ahead of its first-quarter earnings report on Wednesday, with FactSet consensus expecting earnings of $2.14 per share and revenue of $857.7 million, both within the company's prior guidance range, indicating business stability.
- Humana Guidance Reaffirmation: Humana's shares increased by 8% after reaffirming its full-year adjusted earnings guidance of at least $9 per share, surpassing the FactSet consensus of $8.93, reflecting the company's strong performance and growth potential in the health insurance market.
See More
Viasat Partners with Lockheed Martin for NOAA Satellite Communications
- Technology Integration: Viasat has been selected by Lockheed Martin to provide satellite communications technology for NOAA's hurricane hunter aircraft, marking the first formal line-fit integration of its Hybrid SATCOM Approach Technology on the C130J platform, enhancing the aircraft's communication capabilities.
- Future Enhancements: The HSA platform is designed to accommodate multiple antenna apertures, enabling multi-network and multi-orbit connectivity, which allows for future enhancements to the C-130J aircraft, increasing its potential applications in meteorological monitoring.
- Contract Details: Although the financial terms of the contract with Lockheed Martin were not disclosed, this collaboration is expected to contribute to mid-single-digit revenue growth for Viasat, further solidifying its position in the satellite communications market.
- Financial Outlook: Viasat anticipates approximately $180 million in free cash flow for fiscal 2027, indicating the company's financial health and growth potential, particularly through partnerships with major defense contractors.
See More
