Key Takeaways
- Oppenheimer launched coverage of Viasat (VSAT) stock with an “Outperform” designation and $140 price objective, suggesting approximately 96% potential gains from the previous closing price.
- Shares climbed $9.40 on Monday, reaching $71.35, trading within a 52-week range spanning from $14.00 to $89.79.
- The company’s Q3 earnings fell short of projections, with EPS of ($0.02) versus expected $0.32, while revenue came in roughly $30 million below estimates.
- Louisiana State Employees Retirement System initiated a new stake valued at approximately $2.76 million during Q1; institutional investors control 86.05% of shares.
- Company executives and board members divested 438,275 shares totaling more than $28.6 million over the last three months, with recent transactions by the CFO and a board member.
Oppenheimer launched coverage of Viasat (VSAT) stock on Monday with an “Outperform” designation and established a $140 price objective — representing nearly twice the current trading level. Shares reached $71.35 on Monday, gaining $9.40 throughout the session, positioning Oppenheimer’s projection at a substantial 96% premium to that closing figure.
This represents a bold forecast for a security that has experienced considerable volatility throughout the year. VSAT touched a 12-month floor of $14.00 before staging a recovery. During the same timeframe, the stock peaked at $89.79.
The equity’s 50-day simple moving average stands at $68.04, while the 200-day moving average registers $52.63, indicating Monday’s price exceeded both technical indicators.
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 with an “Outperform” rating on April 24.
Barclays takes a more conservative approach, maintaining a $49 target. Weiss Ratings assigns a “Sell (D-)” grade to the shares.
The aggregate analyst sentiment registers as “Moderate Buy” with average price objectives ranging from approximately $77 to $84, varying by data provider. Ten analysts track the stock: one rates it Strong Buy, seven recommend Buy, one suggests Hold, and one advises Sell.
Quarterly Results Fall Below Expectations
On May 28, Viasat unveiled Q3 financial results that failed to meet projections. Earnings per share registered at ($0.02), undershooting the consensus forecast of $0.32 by $0.34. Revenue totaled $1.17 billion compared to analyst expectations of $1.20 billion — representing an approximate $30 million gap.
Revenue increased 2.1% compared to the prior-year period, and the company delivered identical EPS figures to the year-ago quarter. Net profit margin measured -0.73%, while return on equity registered a marginal positive at 1.58%.
Full-year EPS projections suggest a landing point of -$0.39, based on analyst consensus. The company’s market capitalization ranges between approximately $8.46 billion and $9.74 billion depending on daily price fluctuations, accompanied by a debt-to-equity ratio of 1.35.
Institutional Accumulation Contrasts with Executive Divestment
Louisiana State Employees Retirement System established a new holding during Q1, acquiring 60,200 shares with an estimated value of $2.76 million. This contribution strengthens an already substantial institutional ownership structure — 86.05% of VSAT shares reside with institutional holders.
Several significant portfolio adjustments originated from Disciplined Growth Investors, which accumulated 796,349 shares in Q2, elevating its total position to 5.85 million. T. Rowe Price executed a substantial expansion — increasing holdings by 2,821.7% in Q4 — adding over 3.1 million shares.
Conversely, company insiders have been reducing positions. CFO Garrett L. Chase divested 4,000 shares on June 22 at $62.41, trimming his holdings by 10.46%. Director Richard A. Baldridge sold 27,122 shares on June 3 at $71.74, representing an 11.28% reduction.
Cumulatively, insiders liquidated 438,275 shares valued at $28.6 million during the previous 90 days. Insider ownership currently represents 2.20% of outstanding shares.
As of Monday’s trading session, VSAT commenced at $61.95 before advancing to settle at $71.35.
