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In recent transactions, Charles C. Townsend, a director at Gogo Inc . (NASDAQ:GOGO), acquired a significant amount of the company’s common stock. According to a recent SEC filing, Townsend purchased a total of 200,000 shares over two days, with a combined value exceeding $1.3 million. The insider buying comes as the $1.02 billion market cap company trades at 71 times earnings, significantly above industry averages.
On March 17, Townsend acquired 98,044 shares at a weighted average price of $6.57, with individual transaction prices ranging from $6.44 to $6.67. The following day, March 18, he bought an additional 101,956 shares at an average price of $6.74, with prices ranging from $6.36 to $6.95. According to InvestingPro data, the stock has recently underperformed, though analysts maintain price targets between $10-13.
These transactions were executed through the Charles C. Townsend III Trust, where Townsend serves as co-trustee. Following these acquisitions, Townsend’s total direct and indirect ownership in Gogo Inc. increased to 1,940,688 shares. The company maintains healthy liquidity with a current ratio of 1.77, indicating strong ability to meet short-term obligations.
In other recent news, Gogo Inc. reported its Q4 2024 earnings, highlighting a significant miss on earnings per share (EPS) with a loss of $0.22, contrary to the expected gain of $0.0567. Despite this, the company exceeded revenue expectations, bringing in $137.8 million compared to the anticipated $97.28 million. This marks a 41% year-over-year increase, driven by a 47% rise in service revenue. Additionally, Gogo has secured Federal Aviation Administration (FAA) approval for its Plane Simple® Ka-band tail mount terminal on Gulfstream GV and G550 aircraft, which enhances connectivity capabilities.
In another development, Gogo is working on an aftermarket Supplemental Type Certificate (STC) for Gulfstream G500 and G600 models, expected to be completed later this year. The company also announced its revenue guidance for 2025, projecting between $870 million and $910 million, with adjusted EBITDA expected to range from $200 million to $220 million. Meanwhile, Gogo’s acquisition of Satcom Direct has been highlighted as a strategic move, with executives emphasizing the synergy achievements and growth potential in the business aviation and military/government sectors.
Analysts from Raymond (NSE:RYMD) James and Associates and William Blair have shown interest in Gogo’s competitive strategy against major players like Starlink, as well as the company’s multi-orbit connectivity solutions. Gogo’s Executive Chairman, Oakley Thorne, emphasized the company’s unique position in offering a low earth orbit (LEO) solution tailored for the business aviation market.
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