Globalstar, Inc. ( GSAT ) shares are trading higher Monday morning. The company earlier announced it has contracted with SpaceX to launch a new set of satellites aboard a Falcon 9 rocket.
What To Know: This move is a key step in the company’s plan to enhance its next-generation telecommunications infrastructure. The launch, slated for next year, follows an initial deployment scheduled for later this year.
The new satellites are part of a 2022 procurement agreement with manufacturer MDA and are designed to work in tandem with Globalstar’s existing second-generation constellation. The company stated these assets will bolster its capacity to deliver continuous and high-quality satellite services.
This operational development comes as GSAT’s stock has seen significant volatility. The company’s CEO, Dr. Paul Jacobs, hailed the SpaceX agreement as “another important milestone” in their strategic plan, emphasizing the long-term enhancement of service quality for their customers.
The satellites, constructed by MDA and Rocket Lab, have received a 15-year operational authorization from the Federal Communications Commission under Globalstar’s HIBLEO-4 filing.
Benzinga Edge Rankings: Based on its Benzinga Edge rankings, Globalstar ( GSAT ) shows a stark contrast between its market momentum and underlying fundamentals. The stock earns a high Momentum score of 72.12, indicating its recent price performance has been very strong. However, its other metrics are weak.
GSAT scores just 4.03 for Value and 11.80 for Growth, suggesting the stock is considered significantly overvalued and has poor growth characteristics.
Price Action: According to data from Benzinga Pro, GSAT shares are trading higher by 3.89% to $25.89 Monday morning. The stock has a 52-week high of $26.40 and a 52-week low of $17.24.
Read Also: Globalstar Kicks Off Global Expansion with the First C-3 Tracking Antenna Supporting its New Constellation and Installed at Clifton, Texas Ground Station
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Globalstar’s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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