Globalstar (NYSE:GSAT), Inc.'s (NYSEAMERICAN:GSAT) Vice President and Chief Financial Officer, Rebecca Clary, has sold 75,000 shares of the company's voting common stock, according to a recent SEC filing. The transactions, which took place on June 3, 2024, were executed at prices ranging from $1.09 to $1.13 per share, with the volume weighted average price reported at $1.1059 per share. The total value of the shares sold by Clary amounted to approximately $82,942.
The sale was conducted under a prearranged trading plan that Clary adopted on June 28, 2023, in accordance with Rule 10b5-1, which allows company insiders to establish predetermined trading plans for selling stocks at a time when they are not in possession of material non-public information. This rule is designed to prevent insider trading by allowing major holders to sell a predetermined number of shares at a predetermined time.
Following the sale, Clary's holdings in Globalstar have decreased, yet she still retains a significant stake in the company, with 1,493,745 shares remaining in her possession. The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency into the trading activities of a company's officers and directors.
Investors often monitor insider buying and selling as it can provide insights into an executive's view of the company's future prospects. In this case, the sale by Globalstar's CFO might be of interest to shareholders and potential investors as they assess the company's financial health and outlook.
Globalstar, headquartered in Covington, Louisiana, operates in the communication services sector, providing mobile satellite services and satellite communications solutions. As of the latest reports, the company's stock is publicly traded under the ticker symbol GSAT on the NYSE American exchange.
InvestingPro Insights
As Globalstar's Vice President and Chief Financial Officer, Rebecca Clary, parts with a portion of her shares, investors and analysts are keeping a close eye on the company's financial performance and stock behavior. According to the latest metrics from InvestingPro, Globalstar has reported a revenue of $221.64 million over the last twelve months as of Q1 2024, marking a notable growth of 27.11%. Despite this revenue growth, the company has experienced a slight quarterly revenue decline of -3.69% in Q1 2024.
Globalstar's gross profit margin stands impressively at 67.4%, reflecting its ability to maintain a strong margin on its services. However, the company's operating income remains in the negative, with an adjusted operating income of -$8.5 million and an operating margin of -3.83% over the same period. This aligns with one of the InvestingPro Tips indicating that analysts do not anticipate Globalstar to be profitable this year.
InvestingPro Tips also reveal that Globalstar's stock has fared poorly over the last month, with a price total return of -14.62%. Additionally, the company operates with a moderate level of debt and has not been profitable over the last twelve months. Despite these challenges, Globalstar has managed a strong return over the last five years. It's noteworthy that the company does not pay a dividend, which might influence investment decisions for those seeking regular income from their holdings.
For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available for Globalstar. These can be accessed by visiting https://www.investing.com/pro/GSAT. Moreover, users can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a comprehensive list of tips and metrics to inform investment decisions.
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