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EchoStar Stock (SATS) Rockets 80% on $23B AT&T Deal

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EchoStar stock underwent a huge rally on Tuesday after it reached a $23 billion agreement with AT&T.

EchoStar (SATS) stock soared on Tuesday after the satellite communication solutions and services company announced a deal with wireless provider AT&T (T). Under the terms of this agreement, EchoStar has agreed to sell its 3.45 GHz and 600 MHz spectrum licenses to AT&T for $23 billion. The deal will close after it receives regulatory approval and completes other closing conditions.

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EchoStar and AT&T noted that the agreement is mutually beneficial, as it creates a hybrid mobile network operator (MNO) relationship. With this, Boost Mobile subscribers will continue to have access to T-Mobile (TMUS) networks, but will receive their primary connection from AT&T. This will result in the decommissioning of Boost Mobile’s radio access network (RAN) over time.

Hamid Akhavan, President and CEO of EchoStar, noted this likely won’t be the last deal the company announces for its networks. He said, “The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar’s continued operations and growth initiatives. We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the U.S. government and wireless industry participants.”

EchoStar Stock Movement Today

EchoStar stock was up 78.05% on Tuesday, extending a 133.36% rally year-to-date. The shares have also increased 52.68% over the past 12 months. Today’s news came with heavy trading, as some 11.35 million shares of SATS stock changed hands, compared to a three-month daily average of 2.42 million units.

Is EchoStar Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for EchoStar is Moderate Buy, based on two Buy and four Hold ratings over the past three months. With that comes an average SATS stock price target of $30.10, representing a potential 43.47% downside for the shares.

See more SATS stock analyst ratings

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