Echostar’s (SATS) stock has continued to reach for the stars. The shares of the satellite communication solutions provider skyrocketed further on Wednesday, closing about 16% stronger at $58.76.
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The company’s stock has continued to extend its rally after the new deal with wireless telecommunications giant AT&T (T) was disclosed two days ago. In the deal, Echostar agreed to sell its 3.45 GHz and 600 MHz spectrum licenses to AT&T for $23 billion.
The agreement is expected to create a hybrid mobile network operation relationship between the two companies. Under the deal, subscribers of Echostar’s Boost Mobile prepaid wireless service are expected to continue to have internet access via mobile network operator T-Mobile (TMUS), although their primary connection will originate from AT&T.
EchoStar Clinches Top Spot
Although the deal is still subject to regulatory approval and is expected to be completed by the first half of next year, the SATS stock has been very upbeat about the news. Over the last five days, the broadband internet provider has seen its stock balloon by over 100%. EchoStar’s shares have also shot up by more than 150% since the start of the year.
The Colorado-based American company’s stock emerged as one of the top five highest gainers from Wednesday’s trading activities, coming in third behind software company MongoDB (MDB) and electric vehicle maker Polestar Automotive Holding UK (PSNY). MDB and PSNY stocks topped the list, adding 38% and 17%, respectively, at the closing bell. On the other hand, AT&T’s stock rose by 1.75% to $29.06 at the closing hour on Wednesday.
Investors appear unfazed by the news of media giant Disney (DIS) dragging Echostar’s subsidiary Dish Network to court over the latter’s newly introduced short-term packages for its Sling TV internet TV service. A representative of Sling TV described the lawsuit to Variety as “meritless.”
Is EchoStar a Good Stock to Buy?
In its most recent second-quarter Fiscal year 2025 results, Echostar saw its revenue decline by 5.8% year-over-year to about $3.7 billion, largely due to fewer subscribers in its Pay-TV and Broadband and Satellite Services segments. During that quarter, analysts expected a loss per share of 94 cents, but the number came in at a loss of $1.05 per share.
For its upcoming third-quarter results scheduled for November 11 this year, Wall Street expects a loss of $1.23 per share. So, the question remains this: Is SATS really a good stock to buy? Wall Street has the answer.
On TipRanks, SATS has a Moderate Buy rating consensus based on two Buys and three Holds from five Wall Street analysts. The average SATS price target over the last three months stands at $46.8, which is a 20.22% downside potential from the current level.
Furthermore, TipRanks’ AI Stock Analysis gives the shares a Neutral rating with a price target of $51, representing a 13% downward potential.
