Englewood, Colorado-based EchoStar Corporation (SATS) provides pay-TV services in the United States and internationally. Valued at a market cap of $31.6 billion, the company offers direct-broadcast and fixed-satellite services, owned and leased satellites, leased fiber-optic networks, in-home services, call-center operations, and more.
Companies with a market cap of $10 billion or more are typically referred to as “big-cap stocks.” SATS fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the telecom services industry.
Despite its strength, SATS stock slipped 27.5% from its 52-week high of $147.25, reached on May 18. The stock is down 2.9% over the past three months, underperforming the S&P 500 Index’s ($SPX) 13.5% rise during the same time frame.
However, SATS has rallied the broader market over the longer term. The stock has surged 324.8% over the past 52 weeks, while SPX has delivered a 25.4% return over the same period.
SATS has been trading above its 200-day moving average since last year, but below its 50-day moving average since this month.
On June 12, SATS stock fell 7% after the initial public offering (IPO) of SpaceX. SpaceX, now known as Space Exploration Technologies Corp. (SPCX), began trading under SPCX, triggering a sell-off in related space-industry stocks. SATS held a stake of more than 2% in SPCX, which also seemed to affect the company’s price performance during that trading session. Investors were quick to sell off shares of existing space companies to invest directly in the newly public SpaceX.
When stacked against its peer, Comcast Corporation (CMCSA), SATS has outperformed. Over the past year, CMCSA stock has declined 35.1%.
Moreover, sentiment on SATS remains somewhat optimistic. Among the six analysts covering the stock, the consensus rating is a “Moderate Buy.” Its mean price target of $144 suggests 33.8% upside from current levels.
