Essex Investment Buys $7.1 Million Globalstar Stake as Revenue Hits Record High
Key Points
Massachusetts-based Essex Investment Management acquired 194,343 shares of Globalstar in the third quarter.
The acquisition marked a new position for Essex.
The position represented about $7.1 million in value at quarter-end, or 1.1% of overall assets.
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Massachusetts-based Essex Investment Management disclosed a new position in Globalstar (NASDAQ:GSAT), valued at approximately $7.1 million, according to an SEC filing on Thursday.
What Happened
According to a filing with the Securities and Exchange Commission released Thursday, Essex Investment Management reported establishing a new position in Globalstar (NASDAQ:GSAT) during the third quarter. The fund added 194,343 shares with an estimated market value of $7.1 million based on the quarter-end price. Globalstar now represents 1.1% of Essex's $653.4 million in reportable U.S. equity holdings.
What Else to Know
Top five holdings after the filing:
- NASDAQ:KTOS: $22.3 million (3.4% of AUM)
- NASDAQ:STRL: $15.5 million (2.4% of AUM)
- NASDAQ:AMSC: $14.6 million (2.2% of AUM)
- NASDAQ:TSEM: $14.2 million (2.2% of AUM)
- NASDAQ:INSM: $12.5 million (1.9% of AUM)
As of Friday's market close, Globalstar shares were priced at $50.48, up 82% over the past year and well outperforming the S&P 500's 12% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Friday) | $50.48 |
| Market Capitalization | $6.4 billion |
| Revenue (TTM) | $260.7 million |
| Net Income (TTM) | ($38.4 million) |
Company Snapshot
Globalstar, Inc. is a leading provider of mobile satellite communications, enabling connectivity in remote and underserved regions worldwide. The company leverages its proprietary satellite network to deliver mission-critical voice, data, and IoT solutions to enterprise and government clients, as well as individual consumers.
With a strategic focus on expanding its 5G capabilities and commercializing Band n53 spectrum, Globalstar aims to strengthen its competitive position in the evolving telecommunications landscape. Its diversified product suite and global reach underpin its role as a key player in satellite-enabled communications and asset tracking.
Foolish Take
Essex Investment Management’s new Globalstar position comes amid growing institutional interest in satellite communications and connectivity, and for Essex, the addition fits the firm's small- and micro-cap growth strategy, which targets companies at “inflection points” of technological acceleration.
The disclosure also coincided with Globalstar’s third-quarter earnings release, which reported record third-quarter revenue of $73.8 million, up from $72.3 million a year earlier, driven by strong wholesale capacity services and subscriber equipment sales. While net income fell to $1.1 million due to higher non-cash interest and foreign currency impacts, the company reaffirmed full-year guidance between $260 million and $285 million in revenue and a 50% adjusted EBITDA margin. CEO Paul Jacobs highlighted progress on its next-generation C-3 satellite system and expansion of its global ground infrastructure, underscoring Globalstar’s ambition to be a hybrid satellite-terrestrial network provider.
For long-term investors, Globalstar’s growing partnerships and improved commercialization could represent a durable growth runway—but near-term volatility remains a risk as the company continues investing heavily in infrastructure expansion and technology integration.
Glossary
13F reportable assets under management: The portion of a fund’s holdings required to be disclosed quarterly to the SEC.
Alpha: A measure of an investment’s performance relative to a benchmark, showing value added or lost by active management.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a financial institution or fund.
Band n53 spectrum: A specific frequency band allocated for wireless communications, used to support advanced mobile and 5G services.
Gateway operators: Companies or entities that manage ground stations connecting satellite networks to terrestrial telecommunications systems.
Mobile satellite services: Communication services delivered via satellites, enabling voice, data, and tracking in remote or mobile environments.
Mission-critical: Essential systems or services whose failure would significantly disrupt operations or safety.
IoT (Internet of Things): A network of physical devices embedded with sensors and software to connect and exchange data over the internet.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sterling Infrastructure. The Motley Fool has a disclosure policy.
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