GSAT Should I Buy
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Globalstar Inc (GSAT) is not a strong buy for a beginner, long-term investor at this time. While the stock has seen significant interest from hedge funds and has strategic value due to recent deals, the financial performance is weak, and technical indicators suggest no clear upward momentum. The lack of positive trading signals and the balanced risk/reward profile from analysts further support a hold recommendation.
The MACD is below 0 and negatively contracting, indicating bearish momentum. RSI is neutral at 46.975, showing no clear overbought or oversold conditions. Moving averages are converging, and the stock is trading below the pivot level of 60.368, with support at 54.768 and resistance at 65.968. Overall, the technical indicators suggest a lack of strong upward momentum.
Hedge funds have significantly increased their buying activity by 113.87% over the last quarter. The strategic value of Globalstar's spectrum has increased due to the Echostar and SpaceX deal.
Financial performance is weak, with a significant drop in net income (-121.80% YoY) and EPS (-116.67% YoY). Gross margin has also declined (-8.41% YoY). Analysts see the risk/reward profile as balanced, and there is no recent news or congress trading data to indicate strong interest or momentum.
In Q3 2025, revenue increased by 2.13% YoY to $73.85M, but net income dropped significantly to -$1.58M (-121.80% YoY). EPS fell to -0.01 (-116.67% YoY), and gross margin declined to 35.92% (-8.41% YoY). Overall, the financials show weak profitability and growth trends.
Deutsche Bank initiated coverage with a Hold rating and a $62 price target. Analysts view the risk/reward profile as balanced, despite the stock doubling in value over the past three months due to strategic developments.
