Globalstar, Inc. (NYSEAMERICAN: GSAT) is screaming for the top in the market this morning, following up on the gains seen in the stock yesterday. However, with no press releases or SEC filings, many are wondering why the stock is ticking up.
Here’s what’s going on:
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- Why Globalstar Stock Is Up
- A Short Squeeze Could Send GSAT Soaring
- What Analysts Think About GSAT Stock
- Final Thoughts
Why Globalstar Stock Is Up
As mentioned above, Globalstar is flying in the market this morning, trading on gains of more than 8% early on and following up on more than 15% gains we saw in the stock yesterday. However, if you’re looking for SEC filings or press releases that may have caused the move, you’ll be hard pressed to find anything.
So, what’s the deal?
The gains seem to be the result of the fact that retail investors are building the conversation surrounding Globalstar. Recently, there has been quite a bit of positive news out of GSAT. The most important of which is that Qualcomm (QCOM) will be using the company’s Band n53 technology in its new 5G modem.
Nonetheless, GSAT is a leader in the global communication industry, and thanks to various points of positive news as of late, that leadership is growing. So, we’re seeing retail investors posting due diligence on the stock all over social media.
A Short Squeeze Could Send GSAT Soaring
While the gains we’ve seen from GSAT over the past couple of trading sessions have been impressive, they may just be the beginning. Over the past several weeks, we’ve seen what can happen when retail investors band together to purchase heavily shorted stocks.
Well, Wall Street Bets Redditors, the same group that showed just how powerful retail investors can be, have been chatting about Globalstar as of late. Moreover, when you dig into the details of the stock, it becomes clear that a big short squeeze may be on the horizon.
Keep in mind that when we talk about GSAT stock, we’re talking about a stock with short interest in the 22% range. Any short interest over 20% is incredibly high and could result in a tremendous short squeeze. After all, when heavily shorted stocks tick up, those who hold short positions are forced to buy shares to cut the bleeding.
All told, the recent gains have been impressive, however, they may just be the beginning for GSAT.
What Analysts Think About GSAT Stock
Analysts aren’t huge fans of Globalstar stock. In fact, according to TipRanks, there’s only one analyst that’s currently weighing in on the stock, and that analyst rates the stock a Sell.
Moreover, the price target on GSAT currently sits at $0.55 per share, suggesting that significant declines may be ahead.
Nonetheless, it’s worth mentioning that the analyst coverage on the stock is largely outdated and doesn’t take into account Qualcomm’s use of the company’s Band n53, nor other recent news that could send GSAT stock for the top.
All in all, Globalstar is an interesting play at the moment. As retail investors continue to band behind the stock, the potential for a short squeeze only grows. With such heavy short interest, the squeeze could be massive. As such, GSAT stock is one worth watching closely.