Benzinga - Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Globalstar's Bumpy Ride: One company that has been a star performer in the last two years has been mobile satellite services company Globalstar, Inc. (NYSE: GSAT).
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At the beginning of 2020, Globalstar shares were trading at just 53 cents. By the beginning of March 2020, the stock was down to 41 cents as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
When the market crashed during the U.S. COVID-19 outbreak, Globalstar shares dropped as low as 23 cents on March 18, 2020, during the height of the pandemic fears.
When the market bounced in late March 2020, Globalstar began to rebound as well. The stock surpassed 40 cents several times during the summer of 2020, including two brief intraday spikes to 60 cents.
Unfortunately, Globalstar didn’t maintain the momentum of the broader market in the second half of 2020. The stock finished the year trading at just 34 cents.
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Globalstar In 2021, 2022, Beyond: After a lackluster 2020, Globalstar has had several key headlines in 2021 and 2022 that generated extreme volatility for the stock.
The biggest news of 2021 came in February when Qualcomm (NASDAQ:QCOM), Inc. (NASDAQ: QCOM) said it would use Globalstar’s technology in a new 5G modem. The headline sent Globalstar shares surging more than 142% in just two days, ultimately reaching its 2021 high of $2.98.
Unfortunately, the stock quickly reversed course, pulling all the way back to 82 cents in April 2021.
In 2022, Globalstar shares caught another bid in September when Apple Inc (NASDAQ: NASDAQ:AAPL) announced a partnership with Globalstar to offer an emergency text messaging service for the new iPhone 14. Globalstar shares surged as high as $2.98 in early September 2022 on the Apple news. Unfortunately, many traders viewed the announcement as a sell-the-news event, and Globalstar shares have since pulled back to around $1.75.
Still, investors who bought Globalstar on the day it hit its 2020 pandemic low and held on have generated a positive return on their investment. In fact, $1,000 in Globalstar stock bought on March 18, 2020, would be worth about $6,458 today.
Looking ahead, analysts are expecting Globalstar's stock to continue to gain ground in the next 12 months. The average price target among the three analysts covering the stock is $3.75, suggesting a 114.9% upside from current levels.
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