Global Eagle Entertainment (Nasdaq: ENT) Soars on Contract Extension with Southwest Airlines

Market Mover Alert! Global Eagle Entertainment Inc. – Nasdaq: ENT

Shares, and volumes, of Global Eagle Entertainment have climbed on news of a new contract with SouthWest Airlines (NYSE: LUV). Traded on the Nasdaq under ticker symbol ENT, shares closed on Tuesday at $6.44 and have traded today at a high of $8.05. Global Eagle Entertainment has offices globally and is headquartered in Marina del Ray, CA.

The extension takes the current contract from 2020 to 2025. Global Eagle Entertainment provides the connectivity system and services for inflight entertainment to SouthWest Airlines. According to press reports, the contract extension is expected to provide a lift to ENT price levels as it has been floundering against the Zacks Internet Content industry index for the past six months. The company has experienced good news in 2016, receiving the Inflight Award for “Best Handheld Wireless IFE System”. Global Eagle Entertainment also boasts a distribution agreement with Premiership Rugby, and an agreement to supply an integrated streaming platform to Saudi Arabian Airlines.

Four firms cover ENT with one assigning a rating of “Hold”, one “Buy”, and two give a “Strong buy”. Analyst price targets range from $16 to $22. Global Eagle Entertainment sales have increased each year. In 2012, sales were $69.2 million and in 2015 they reported sales of $426 million. EPS, though still negative, have improved from a loss of $2.24 EPS in 2012 to a loss of $0.78 EPS in 2015.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

 

Ticker Symbol ENT
Last Price a/o 10:20 EST  $                     7.64
Average Volume 358,540
Market Cap $547.7 million
Sales $486.2 million
Shares Outstanding 85 million
Share Float 83 million
Shortable Yes
Optionable Yes
Inside Ownership 0.70%
Short Float 4.59%
Short Interest Ratio 10.62
Quarterly Return -21.46%
YTD Return -34.75%
Year Return -35.54%