A Top Insider at Globalstar Just Bought $5 Mil Worth of Stock

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If a top-level insider is spending millions of dollars on company stock, investors should take note. These insiders tend to be way ahead of analysts and portfolio managers when it comes to the performance of their companies and their stock purchases can provide valuable trading signals.

In this report, we are going to highlight a large purchase from a top-level insider at Globalstar Inc (GSAT:US). Globalstar is a satellite communications company that offers voice and data communication services. Headquartered in Covington, US, it provides wireless communications services in areas not served or underserved by terrestrial networks and in circumstances where terrestrial networks are not operational due to natural or man-made disasters. The company is listed on the New York Stock Exchange and currently has a market cap of approximately $1.97 billion.

Insider Buying at Globalstar

2iQ’s data shows that between May 9 and May 11, Globalstar’s Executive Chairman Jay Monroe III purchased 5,263,863 shares at an average price of $0.98 per share. This trading activity cost the insider approximately $5.15 million.

Top-level Insider

There are unlikely to be many people who have a better understanding of Globalstar, and its prospects, than Mr. Monroe. He has held the Chairman position since Thermo Capital Partners purchased the company’s assets in April 2004. And he was the company's CEO between January 2005 and July 2009 and July 2011 and September 2018.

Now, Mr. Monroe has made large stock purchases here before. However, our records show that this is his largest purchase since December 2018. This suggests that he sees a lot of value in the stock at present.

Strong Top-line Growth

Globalstar’s recent Q1 results showed that the company is executing well right now.

For the period, total revenue increased 79% on the first quarter of 2022 to $58.6 million thanks to increases in both service revenue and revenue generated from subscriber equipment sales. Meanwhile, adjusted EBITDA came in at $32.6 million, up 216% year on year. Net loss was $3.5 million, compared to $20.5 million for the first quarter of 2022.

"Globalstar had record growth in the first quarter, with operating income up over 150% and an over 80% reduction in GAAP net loss, each led by a nearly 80% increase in total revenue over the first quarter of 2022, and we are poised to deliver sustainable revenue growth throughout 2023,” commented CEO Dave Kagan.

“Globalstar is today enabling groundbreaking service offerings that are saving lives across our product portfolio. Of course, we do not believe the current market price of our stock reflects our company's value. All we can do is continue to execute,” added Mr. Monroe.

In light of these results, we see the insider buying here as a bullish development.