Intelsat SA (NYSE: I) is having an overwhelmingly strong day in the market today after news broke that the company has been selected by the Federal Aviation Administration (FAA) for a task order surrounding the development and operation of a satellite payload. With the news breaking, investors are excited and sending the stock screaming for the top. Today, we’ll talk about:
- The selection of the company by the FAA;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to the stock ahead.
NYSE: I Runs For The Top On FAA Selection
As mentioned above, Intelsat is having an incredibly strong day in the market today after announcing that it has been awarded a new task order by the FAA. In a press release issued in the pre-market hours this morning, the company announced that it is part of a team of companies that has been awarded a new task order by the FAA. According to the release, the team that includes Intelsat will be developing and operating a satellite payload designed to aid aircraft aviation, particularly precision approaches to airports without dependence on ground-based infrastructure.
In the release, NYSE: I said that the lead company on the task order is Leidos, a global science and technology leader. The task order has a four-year development phase and a ten-year operations and maintenance phase. In a statement, Skot Butler, President of Intelsat General, had the following to offer:
We encourage other federal agencies with critical space missions to follow the FAA’s lead and take advantage of the value and speed a commercially hosted payload can deliver… This new payload will provide commercial and civilian pilots with the additional visibility and vital information needed to help ensure a safe flight, particularly when landing in limited visibility or difficult weather.
What We’re Seeing From The Stock
One of the first things that we learn when we start to dabble in the market is that the news causes movement. In this particular case, the news surrounding Intelsat is overwhelmingly positive. So, it’s no surprise that the stock is headed for the top. At the moment (11:24), NYSE: I is trading at $7.95 per share after a gain of $0.86 per share (12.13%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on Intelsat. In particular, we’re interested in following the story surrounding the new task order and the revenue that this order will generate. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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