Key Takeaways
- Oppenheimer began coverage of Viasat (VSAT) with an “Outperform” designation and established a $140 price objective, suggesting approximately 96% potential upside from the previous closing price.
- Shares climbed $9.40 on Monday to reach $71.35, positioning the stock within its 52-week range of $14.00 to $89.79.
- The company’s third-quarter results disappointed, with earnings per share falling short by $0.34 at ($0.02) versus the expected $0.32, while revenue underperformed by approximately $30 million.
- Louisiana State Employees Retirement System established a new stake valued at roughly $2.76 million during the first quarter; institutional investors control 86.05% of outstanding shares.
- Company executives have divested 438,275 shares totaling more than $28.6 million over the last three months, with recent transactions from both the CFO and a board member.
Oppenheimer launched coverage of Viasat (VSAT) on Monday with an “Outperform” designation and established a $140 price objective — representing nearly a 100% increase from current trading levels. Shares reached $71.35 on Monday, gaining $9.40 during the session, which positions Oppenheimer’s forecast at approximately 96% above that closing figure.
This represents a particularly bold forecast for a stock that has experienced significant volatility throughout the year. VSAT bottomed at $14.00 within the past twelve months before mounting a recovery. During that same timeframe, shares peaked at $89.79.
Technical indicators show the stock’s 50-day moving average at $68.04 while the 200-day moving average stands at $52.63, meaning Monday’s closing price exceeded both important technical benchmarks.
Oppenheimer isn’t alone in expressing optimism. B. Riley elevated its price objective from $94 to $106 with a “Buy” recommendation on May 29. New Street Research launched coverage with a “Buy” rating and $100 target on May 13. Deutsche Bank maintained a “Buy” stance with a $97 objective on June 1. Raymond James established a $74 target alongside an “Outperform” rating on April 24.
Barclays maintains a more conservative outlook, setting a $49 price target. Weiss Ratings has assigned a “Sell (D-)” rating to the shares.
The overall analyst consensus registers as “Moderate Buy” with average price targets ranging between $77 and $84, varying by source. Ten Wall Street analysts currently follow the stock: one rates it Strong Buy, seven recommend Buy, one suggests Hold, and one advises Sell.
Disappointing Quarterly Results Provide Context
On May 28, Viasat disclosed third-quarter financial results that failed to meet expectations. Earnings per share registered at ($0.02), falling short of the $0.32 consensus forecast by $0.34. Revenue totaled $1.17 billion compared to projections of $1.20 billion — representing an approximate $30 million gap.
Revenue increased 2.1% compared to the prior-year period, while the company matched the previous year’s EPS figure. Net margin came in at -0.73%, with return on equity registering a modest positive at 1.58%.
Analysts project full-year EPS of -$0.39. The company’s market capitalization ranges between approximately $8.46 billion and $9.74 billion depending on daily price fluctuations, with a debt-to-equity ratio of 1.35.
Institutions Accumulate While Insiders Exit
Louisiana State Employees Retirement System initiated a new position during the first quarter, acquiring 60,200 shares with an approximate value of $2.76 million. This addition contributes to an already substantial institutional ownership structure — institutional investors hold 86.05% of VSAT shares.
Notable institutional activity includes Disciplined Growth Investors, which expanded its position by 796,349 shares in the second quarter, reaching a total of 5.85 million shares. T. Rowe Price executed a substantial increase — up 2,821.7% in the fourth quarter — acquiring more than 3.1 million additional shares.
Conversely, corporate insiders have been reducing their holdings. CFO Garrett L. Chase divested 4,000 shares on June 22 at $62.41 per share, decreasing his stake by 10.46%. Director Richard A. Baldridge sold 27,122 shares on June 3 at $71.74 each, representing an 11.28% reduction in his position.
Combined insider transactions totaled 438,275 shares valued at $28.6 million during the previous 90 days. Corporate insiders currently maintain 2.20% ownership of the company.
As of Monday’s trading session, VSAT opened at $61.95 before advancing to close at $71.35.
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