With a 52-Week Change of 103.70%, Gogo Inc. [GOGO] is a Better Play Than You Think

On Friday, Gogo Inc. [NASDAQ:GOGO] has a current price of $11.01, coming out to a daily percentage change of 8.37% with a 52-week range of $1.33 – $11.60.

Other data for the company is as follows:

• Stochastic %K of 70.88
• Weighted Alpha of 6.8

Analysts have the price target for Gogo Inc. [GOGO] at 10.00. Daily swings are between $10.07 and $11.05.

The Price is right

Holding a Market Cap of $864.17 million, Gogo Inc. has seen a trading range over the last year of $1.33-$11.60.

For the last five days, GOGO is up from its last closing price. The average shares trading hands each day is 6.31M, with average 10-day volume coming in at 3.72 million.

Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for GOGO. When we apply the Elder Force Index to Gogo Inc., we are seeing an Elder Force Indicator number of 2669880.6.

Recent Performance

The company’s enterprise value has gone from $1.27B to $1.19B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.

In the last quarter, GOGO made a profit of 39.04 million. Gogo Inc. also saw quarter revenue growth year over year of -6.49%. In addition, the company has operating cash flow of $49.97 million.

Technical Analysis

Looking at popular technical indicators, the company’s 5-day moving average is 10.33 compared to the 50-day moving average of 8.61. So, we are clearly seeing an upward trajectory here.

The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. GOGO currently holds a 9-day RSI of 71.40%, while 100-day RSI stands at 62.13%.

Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. GOGO’s 9-day MACD is 0.38 and the company’s 100-day MACD stands at 5.43.

Inside Moves

Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.

The major holders for this stock are 38.05% by insiders and 72.68% by institutions. Regarding institutional holdings, Mudrick Capital Management, L.P. owns 10.26%, while the second top holder, Vanguard Group, Inc. (The), currently owns 5.20%.

Over the last six months, insiders have bought 2,606,359 with the most recent transaction from Silver (Equity) Holdings, LP, 10% Owner, with a purchase at price 10.14 per share.

Conclusion

Overall, the recommended rating for GOGO is Moderate Buy. Currently, the company has 6 analysts watching the stock, and the average quarterly earnings estimate is -0.79. Quarterly revenue estimates are averaging 111.83M with the high estimate reaching 127.1M and the low at 100.78M.

To review, the current 1-year target estimate is sitting at 10.00, while the current price 11.01. Based on this, we expect some pullback on the stock over time given our above analysis.