Gogo Inc. (NASDAQ: GOGO)’s stock price has gone rise by 5.23 in comparison to its previous close of 11.85, however, the company has experienced a 5.14% increase in its stock price over the last five trading days. Seeking Alpha reported 2023-09-03 that Gogo faces increasing competition in the in-flight connectivity market from providers like Viasat and SpaceX. Gogo’s current Air-to-Ground network has limitations in speed and coverage compared to satellite networks. Gogo is investing in new technologies like 5G and LEO satellites to improve its offerings and expand internationally.
Is It Worth Investing in Gogo Inc. (NASDAQ: GOGO) Right Now?
Gogo Inc. (NASDAQ: GOGO) has a price-to-earnings ratio of 10.51x that is above its average ratio. Additionally, the 36-month beta value for GOGO is 1.37. There are mixed opinions on the stock, with 3 analysts rating it as a “buy,” 0 rating it as “overweight,” 3 rating it as “hold,” and 0 rating it as “sell.”
The average price predicted by analysts for GOGO is $18.38, which is $5.23 above the current price. The public float for GOGO is 61.62M and currently, short sellers hold a 7.55% ratio of that float. The average trading volume of GOGO on September 15, 2023 was 636.01K shares.
GOGO’s Market Performance
GOGO stock saw a decrease of 5.14% in the past week, with a monthly decline of -2.43% and a quarterly a decrease of -25.37%. The volatility ratio for the week is 3.54%, and the volatility levels for the last 30 days are 3.16% for Gogo Inc. (GOGO). The simple moving average for the past 20 days is 6.62% for GOGO’s stock, with a -16.54% simple moving average for the past 200 days.
Analysts’ Opinion of GOGO
Many brokerage firms have already submitted their reports for GOGO stocks, with Morgan Stanley repeating the rating for GOGO by listing it as a “Equal-Weight.” The predicted price for GOGO in the upcoming period, according to Morgan Stanley is $15 based on the research report published on November 01, 2022 of the previous year 2022.
GOGO Trading at -11.81% from the 50-Day Moving Average
After a stumble in the market that brought GOGO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -30.49% of loss for the given period.
Volatility was left at 3.16%, however, over the last 30 days, the volatility rate increased by 3.54%, as shares sank -0.87% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -24.65% lower at present.
During the last 5 trading sessions, GOGO rose by +5.14%, which changed the moving average for the period of 200-days by -21.32% in comparison to the 20-day moving average, which settled at $11.69. In addition, Gogo Inc. saw -15.51% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for GOGO
Current profitability levels for the company are sitting at:
- +35.22 for the present operating margin
- +63.25 for the gross margin
The net margin for Gogo Inc. stands at +22.74. The total capital return value is set at 22.71, while invested capital returns managed to touch 16.41. Equity return is now at value -204.70, with 21.10 for asset returns.
When we switch over and look at the enterprise to sales, we see a ratio of 5.14, with the company’s debt to enterprise value settled at 0.30. The receivables turnover for the company is 6.61 and the total asset turnover is 0.48. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.84.
In conclusion, Gogo Inc. (GOGO) has seen bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.