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GOGO Pops on Heavy Insider Purchases

David Becker
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GOGO Pops on Heavy Insider Purchases

Everyone seems to want to use their laptop or mobile device on airplanes, but to get internet access most need to use the airlines service. Here is where GOGO (NASDAQ:GOGO) comes in.

GOGO Inc. provides in-flight Internet connectivity and wireless in-cabin digital entertainment solutions in the United States and internationally. The company, through its proprietary air-to-ground (ATG) network and satellite-based technologies offers a suite of connectivity solutions and other services, including passenger connectivity, passenger entertainment, and operations-oriented communications services.

The stock price has been on the defensive over the past few months and gapped down after weaker than expected earnings. The recent upgrade to a buy from a hold by UBS (NYSE:UBS) helped the stock to gain traction.

The 52-week range of GOGO is $9.71- $35.77, and the stock hit a fresh 52-week high in November of 2013. The three-year growth rate of earnings was flat. Sales increased 35% year over year and the three-year growth rate of sales is higher by 48%.

Recent insider buying should give investors’ confidence. Director Charles C. Townsend acquired 100,000 shares, paying $12.89 per share for a total amount of $1.29 million. President and CEO Michael Small acquired 30,000 shares, paying $12.96 per share for a total amount of $388,758. Mr. Small increased his stake by 34.12% to 117,919 shares with this purchase. Director Oakleigh Thorne acquired 13,001 shares, paying $13.46 per share for a total amount of $174,993. Director Robert H. Mundheim acquired 5,000 shares, paying $13.17 per share for a total amount of $65,857. Mr. Mundheim increased his stake by 6.60% to 80,769 shares with this purchase.

The technical picture shows a stock is attempting to form a bottom and trading in a range near its 52-week low. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a buy signal.

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