Why did Intelsat stock drop?
The rapid financial demise comes after the Federal Communications Commission rejected a plan from Intelsat and other satellite communications companies to let them directly sell spectrum known as the C-band to wireless carriers that could use the airwaves for 5G networks.Apr 14, 2020
Will Intelsat survive?
Intelsat, one of the satellite operators involved in the C-band clearing to make way for terrestrial 5G, announced on Thursday that its reorg plan was approved by a U.S. bankruptcy court – a final milestone in its financial restructuring.
What is happening with Intelsat?
MCLEAN, VA – December 16, 2021 – Intelsat S.A. (OTC: INTEQ) announced today that the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division, has approved its Plan of Reorganization, marking the final Court milestone in the Company's financial restructuring process.Dec 16, 2021
What happened to Intelsat stock?
Shares of Intelsat, which traded over $25 as recently as November, dropped to 79 cents on Wednesday before regular trading was suspended on the New York Stock Exchange due to the bankruptcy filing.May 14, 2020
What is Intelsat stock?
Stock Quote & ChartINTEQ (Common Stock)Price$0.00ChangeVolume3,142% ChangeIntraday High$0.0052 Week HighIntraday Low$0.0052 Week Low2 more rows
Is Intelsat a private company?
Intelsat becomes a private company – Intelsat, Ltd. – after 37 years as an intergovernmental organization. Intelsat begins investing in ground infrastructure and satellites serving the media.
Is Intelsat a good company to work for?
Intelsat is an incredible company, excellent engineers, amazing benefits, beautiful building, and nice employees. At times it can be very busy, depending from the time of the month. There are so many benefits that the company offers that I highly recommend as a great place to work.
How do I buy stock in Intelsat?
How to buy shares in Intelsat S-ACompare share trading platforms. Use our comparison table to help you find a platform that fits you.Open your brokerage account. Complete an application with your details.Confirm your payment details. ... Research the stock. ... Purchase now or later. ... Check in on your investment.
Is Intelsat going out of business?
Satellite service provider Intelsat secured approval from a US court to push ahead with a financial restructuring plan which will see the company more than half its debt load and emerge from bankruptcy protection in early 2022.Dec 17, 2021
Is Intelsat a 5G company?
5G Networking from Anywhere Intelsat recently demonstrated the ability to deploy a secure, high-performance private LTE and 5G network by combining Intelsat's network of satellites and Microsoft's Azure cloud platform.Mar 22, 2022
Did Intelsat file Chapter 11?
Intelsat has officially completed its almost two-year-long financial restructuring process, having filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Eastern District of Virginia in 2020.Feb 28, 2022
How many satellites does Intelsat operate?
52 communicationsAs of March 2011, Intelsat operated a fleet of 52 communications satellites, which was then one of the world's largest fleet of commercial satellites....Intelsat.Tysons Tower, from where Intelsat's satellite fleet is controlledRevenueUS$526.1 million (Q3, 2021)Number of employees1,790 (2021)Websitewww.intelsat.com7 more rows
What happened
Intelsat ( INTE.Q 42.86% ) stock took a tumble today -- falling as much as 8.4% by 2:35 p.m. EST -- but I wouldn't go panicking just yet.
So what
Now, given that Intelsat stock had closed for trading the previous day at $26.33 per share, you can understand why this might have spooked some investors. Was this a pricing error? A bad trade? Or was a large insider investor in Intelsat perhaps in a hurry to unload some stock before bad news became public?
OTC: INTE.Q
My guess is that it was none of those things. As TheFly noted, "Morgan Stanley acted as sole book running manager for the offering." It's unlikely that a big firm like that just pressed the wrong button on a $250 million stock sale. Also, the bad news on Intelsat -- its earnings, or lack thereof -- has already come out, last month in fact.
Now what
Rather, my hunch is that after watching three days of Intelsat stock rebounding from its post-earnings share price slump, someone decided to exit their position before that momentum evaporated.
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What happened
This morning, without warning -- and without any news relating to the company specifically, it seems -- shares of satellite communications company Intelsat (NYSE: I) abruptly plunged 16%.
So what
Four months ago, Elon Musk's SpaceX made headlines when it launched 60 of its new "Starlink" broadband internet satellites into orbit aboard one of its Falcon 9 reusable rockets.
Now what
SpaceX eclipsed the size of Intelsat's 50-satellite constellation in one fell swoop in May. By the end of the year, it could have 300 satellites in orbit, which could be six times as many as Intelsat has.
About Intelsat
We first wrote about Intelsat back in Jan 2018 in our piece on 10 Satellite Stocks for Your NewSpace Portfolio. The Luxembourg company provides “ the world’s most extensive and secure communications network ” via the 50 or so satellites they have in operation. Here’s a comment we made in that article:
The Intelsat Debt Problem
When assessing the attractiveness for any given investment, you’ll find plenty of people who will point to the “pros.” We prefer to go straight for the “cons” to try and find a deal-breaker. For Intelsat, that’s their debt. As of Dec 2019, Intelsat carried $14.7 billion of debt on their books.
A NewSpace ETF
In April of last year, the first NewSpace ETF came online – the Procure Space ETF ( UFO) – which is based on the S-Network Space Index. With just $13 million in assets today, it hasn’t exactly attracted much investment money. Still, it provides retail investors with a more diversified way to play the NewSpace theme.
Conclusion
Finance professionals with advanced degrees have a hard time valuing sophisticated operations like Intelsat, so don’t think as an amateur retail investor you’re in any better position to understand what share price constitutes a bargain here.
