In a recent transaction, Monroe James III, a prominent director and major shareholder of Globalstar (NYSE:GSAT), Inc. (NYSEAMERICAN:GSAT), has increased his stake in the company through a notable purchase of shares. On June 28, 2024, Monroe acquired 4,510,855 shares of Globalstar's common stock at a price of $1.0641 per share, amounting to a total investment of $4.8 million.
The transaction was executed privately, with the shares being sourced from Virewirx, Inc., previously known as XCom Labs, Inc. ("XCom"). This acquisition is part of a private placement agreement, where the shares were initially obtained by XCom as a fee under a Support Services Agreement and related Intellectual Property License Agreement. Details of these agreements were previously disclosed in Globalstar's Current Report on Form 8-K filed on August 31, 2023.
The purchase price of $1.0641 per share reflects the volume-weighted average price of Globalstar's common stock over the ten trading days leading up to June 28, 2024. This was the same price at which XCom originally acquired the shares pursuant to the Support Services Agreement.
Following this transaction, Monroe James III's direct and indirect holdings in Globalstar have increased significantly. His total ownership now stands at 8,708,254 shares held indirectly through Thermo XCOM LLC, among other entities.
Monroe James III's investment is seen as a strong vote of confidence in the future of Globalstar, a company that operates in the communication services sector. Investors often view such purchases by company insiders as a positive sign, reflecting a belief in the company's prospects and potential for growth.
Globalstar, Inc. is incorporated in Delaware and has its business headquarters in Covington, LA. The company's common stock is traded on the NYSE American under the trading symbol GSAT.
In other recent news, Globalstar, Inc. reported significant achievements in its first quarter financial results, including a solid revenue of $56.5 million and a 7% increase in service revenue compared to the previous year. The company also highlighted a robust adjusted EBITDA margin of 52% and maintained its full-year revenue and adjusted EBITDA guidance. Among the key developments, Globalstar initiated a five-year contract with a government services company, promising revenue commitments of up to $20 million by the fifth year. The company also announced the first shipment of its commercial units of XCOM RAN to one of the world's largest retailers. However, the company did see a decline in subscriber equipment revenue due to timing issues. Despite this, Globalstar remains optimistic about its future, with technical teams working on incorporating Band 53 into XCOM RAN and expecting a full commercial launch soon. The company did not provide any updates on stock price movements.
InvestingPro Insights
In light of the recent insider purchase by Monroe James III, investors may be curious about the financial health and performance of Globalstar, Inc. (GSAT). According to InvestingPro data, Globalstar has experienced a commendable revenue growth of 27.11% over the last twelve months as of Q1 2024, with total revenue reaching $221.64 million. This growth, however, is juxtaposed with a slight quarterly revenue decline of -3.69% in Q1 2024, indicating some short-term fluctuations in the company's revenue streams.
From a profitability perspective, Globalstar's gross profit margin remains robust at 67.4%, translating to a gross profit of $149.38 million in the same period. Despite this, the company has an adjusted operating income of -$8.5 million, which suggests challenges in translating top-line growth into operational profitability.
InvestingPro Tips highlight that analysts do not expect Globalstar to be profitable this year, and the company has not been profitable over the last twelve months. Additionally, the stock has taken a significant hit over the last six months, with a price total return of -42.27%, reflecting market volatility and investor sentiment. Nevertheless, it is worth noting that Globalstar has delivered a strong return over the last five years, which may be indicative of its long-term potential.
For those interested in deeper analysis and additional insights, InvestingPro offers more tips on Globalstar, which could help investors make informed decisions. To explore these further, consider visiting https://www.investing.com/pro/GSAT and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are currently 5 additional InvestingPro Tips available, providing a comprehensive view of the company's financial and operational performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.