Announcement • Oct 01
DIRECTV Holdings, LLC entered into an agreement to acquire DISH DBS Corporation from DISH Network Corporation for $1. DIRECTV Holdings, LLC entered into an agreement to acquire DISH DBS Corporation from DISH Network Corporation for $1 on September 29, 2024. DISH Network Corporation will sell and transfer to DIRECTV Holdings all of the issued and outstanding equity interests of DBS in exchange for a total cash purchase price of $1.00 plus the assumption of net debt of DBS and its subsidiaries that is outstanding as of the DIRECTV closing. Upon the completion of such transactions, DBS will become a direct and wholly-owned subsidiary of DIRECTV Holdings, LLC. Upon closing of this transaction, DIRECTV will be led by management team of both organizations and will continue to be led by Bill Morrow, DIRECTV’s Chief Executive Officer, and Ray Carpenter, DIRECTV’s Chief Financial Officer. The transaction is subject to FCC and HSR Act regulatory approval. The transaction is subject to a minimum closing cash condition, that requires that at the DIRECTV Closing, DBS together with its subsidiaries have an aggregate amount of at least $400 million of cash, subject to certain upward adjustments of such $400 million amount. The transaction is also subject to regulatory approval. The transaction, which the boards of directors of both companies have unanimously approved, is expected to close in the fourth quarter of 2025.
Jason Freedman, Minh-Chau Le and James Davis of Ropes & Gray, LLP acted as legal advisor to DIRECTV. Neeta Sahadev of White & Case LLP acted as legal advisor to EchoStar. PJT Partners is acting as lead financial advisor to DIRECTV. J.P. Morgan is acting as lead financial advisor to EchoStar. BofA Securities, Evercore, LionTree and Morgan Stanley also provided financial advice to DIRECTV. Ropes & Gray LLP, Crowell & Moring LLP and HWG LLP, are acting as legal counsel to DIRECTV. White & Case LLP and Steptoe & Johnson PLLC are acting as legal counsel to EchoStar. Announcement • Jul 04
Orange Domains, Trust Machines, Tucows, DISH and Hiro Systems Launch its First Top-Level Domain Orange Domains, the partnership connecting onchain utility with domains from Trust Machines, Tucows, DISH, an EchoStar company, and Hiro Systems, has launched its first top-level domain (TLD), .locker. Offering a true Web3-connected solution to its users, .locker will unleash new opportunities for global domain owners while still providing traditional web domain functionality. As a two-part solution, .locker provides both a Web2 domain name and corresponding digital identity, meaning that it is a TLD solution that bridges Web2 domains with Web3 digital identities, tying them to the same user. It is for Web3-curious and Web3-ready users who want the full functionality of their domain name - such as website and email capabilities - and a corresponding Web3 digital identity to use for specific applications like decentralized finance, managing crypto assets, and Web3 social networks. Those who purchase a .locker domain will enjoy all the benefits they have come to expect from premium TLDs, as well as new Web3 interoperability with Bitcoin to trade, hold, and manage their digital assets. The .locker domain's initial launch phase is exclusively for trademark holders registered in the Trademark Clearing House before opening to early access and the general public in September. .locker domains and Web3 digital identity can be renewed at the user's registrar of record where their domain is currently managed. From freelance designers to writers and small businesses, .locker provides a solution that connects customer acquisition through payments and security for domain owners. Orange Domains is grateful to ICANN for its efficient process, and many domain registrars are eager to offer .locker to their users. Announcement • Jan 24
DISH Network Corporation Files Form 15 DISH Network Corporation has announced that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its common stock under the Securities Exchange Act of 1934, as amended. The par value of the company's common stock was $0.01 per share. Announcement • Jan 10
Dish Wireless Receives $50 Million NTIA Grant for 5G Open RAN Integration and Deployment Center DISH Wireless was awarded a historic $50 million grant from the U.S. Department of Commerce's National Telecommunications and Information Administration (NTIA) to establish the Open RAN Center for Integration & Deployment (ORCID). ORCID will allow participants to test and validate their hardware and software solutions (RU, DU and CU) against a complete commercial-grade Open RAN network deployed by DISH. To date, this grant represents NTIA's largest award under the Public Wireless Supply Chain Innovation Fund (Innovation Fund). ORCID will be housed in DISH's secure Cheyenne, Wyoming campus and will be supported by consortium partners Fujitsu, Mavenir and VMware by Broadcom and technology partners Analog Devices, ARM, Cisco, Dell Technologies, Intel, JMA Wireless, NVIDIA, Qualcomm and Samsung. NTIA Administrator Alan Davidson and Innovation Fund Director Amanda Toman will join EchoStar Co-Founder and Chairman Charlie Ergen, EchoStar CEO Hamid Akhavan, EVP and Chief Network Officer Marc Rouanne and other stakeholders to announce the grant and tour a DISH 5G Open RAN cell site later in Las Vegas. During this event, DISH will outline ORCID's unique advantages, including that it will leverage DISH's experience as the only operator in the United States to commercially deploy a standalone Open RAN 5G network. DISH and its industry partners have validated Open RAN technology at scale across the country; DISH's network covers over 246 million Americans nationwide. At ORCID, participants will be able to test and evaluate individual or multiple network elements to ensure Open RAN interoperability, performance and security, and contribute to the development, deployment and adoption of open and interoperable standards-based radio access networks. ORCID's "living laboratory" will drive the Open RAN ecosystem — from lab testing to commercial deployment. ORCID will combine both lab and field testing and evaluation activities. ORCID will be able to test elements brought by any qualified vendor against DISH's live, complete and commercial-grade Open RAN stack. ORCID will use DISH's spectrum holdings, a combination of low-, mid- and high-band frequencies, enabling field testing and evaluation. ORCID will evaluate Open RAN elements through mixing and matching with those of other vendors, rather than validating a single vendor's stack. DISH's experience in a multi-vendor environment will give ORCID unique insights about the integration of Open RAN into brownfield networks. ORCID's multi-tenant lab and field testing will occur in DISH's secure Cheyenne, Wyoming facility, which is already compliant with stringent security protocols in light of its satellite functions. Valuation Update With 7 Day Price Move • Dec 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$5.66, the stock trades at a trailing P/E ratio of 2.5x. Average forward P/E is 12x in the Media industry in the US. Total loss to shareholders of 82% over the past three years. Valuation Update With 7 Day Price Move • Dec 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$4.57, the stock trades at a trailing P/E ratio of 2x. Average forward P/E is 11x in the Media industry in the US. Total loss to shareholders of 87% over the past three years. Major Estimate Revision • Nov 13
Consensus EPS estimates fall by 57% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$15.5b to US$15.3b. EPS estimate also fell from US$0.823 per share to US$0.352 per share. Net income forecast to shrink 93% next year vs 30% growth forecast for Media industry in the US . Consensus price target down from US$13.04 to US$9.16. Share price was steady at US$3.44 over the past week. Price Target Changed • Nov 07
Price target decreased by 26% to US$9.63 Down from US$13.04, the current price target is an average from 17 analysts. New target price is 174% above last closing price of US$3.52. Stock is down 77% over the past year. The company is forecast to post earnings per share of US$0.17 for next year compared to US$4.34 last year. New Risk • Nov 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Earnings are forecast to decline by an average of 36% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Profit margins are more than 30% lower than last year (7.8% net profit margin). Reported Earnings • Nov 07
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: US$0.26 loss per share (down from US$0.78 profit in 3Q 2022). Revenue: US$3.70b (down 9.5% from 3Q 2022). Net loss: US$139.2m (down 134% from profit in 3Q 2022). Revenue missed analyst estimates by 3.1%. Earnings per share (EPS) were also behind analyst expectations. Revenue is expected to decline by 1.1% p.a. on average during the next 3 years, while revenues in the Media industry in the US are expected to grow by 3.4%. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 50% per year, which means it is performing significantly worse than earnings. Announcement • Nov 02
DISH Network Corporation to Report Q3, 2023 Results on Nov 06, 2023 DISH Network Corporation announced that they will report Q3, 2023 results on Nov 06, 2023 Price Target Changed • Sep 01
Price target decreased by 13% to US$14.51 Down from US$16.67, the current price target is an average from 17 analysts. New target price is 143% above last closing price of US$5.96. Stock is down 65% over the past year. The company is forecast to post earnings per share of US$0.79 for next year compared to US$4.34 last year. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$6.92, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 13x in the Media industry in the US. Total loss to shareholders of 80% over the past three years. Major Estimate Revision • Aug 15
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from US$0.884 to US$0.791 per share. Revenue forecast steady at US$15.6b. Net income forecast to shrink 85% next year vs 8.9% growth forecast for Media industry in the US . Consensus price target broadly unchanged at US$16.17. Share price rose 2.1% to US$7.80 over the past week. Announcement • Aug 09
DISH Network Corporation (NasdaqGS:DISH) entered into a definitive agreement to acquire EchoStar Corporation (NasdaqGS:SATS) for $1.8 billion. DISH Network Corporation (NasdaqGS:DISH) entered into a definitive agreement to acquire EchoStar Corporation (NasdaqGS:SATS) for $1.8 billion on August 8, 2023. Upon closing of the transaction, EchoStar stockholders will receive 2.85 shares of DISH Network Class A common stock for each share of EchoStar Class A, Class C or Class D common stock and 2.85 shares of DISH Network Class B common stock for each share of EchoStar Corporation Class B common stock they own. Following completion of the merger, existing DISH Network shareholders will own approximately 69% and existing EchoStar shareholders will own approximately 31% of the common stock of the combined company. The combined company will be headquartered in Englewood, Colorado. Hamid Akhavan will serve as President and Chief Executive Officer of the combined company upon closing of the transaction and Charles Ergen will serve as Executive Chairman. John Swieringa, President & COO of DISH Wireless, will be President, Technology & Chief Operating Officer of the combined company. Erik Carlson will continue to serve as President and Chief Executive Officer of DISH Network until closing of the transaction, at which time he will depart the business. The Board of Directors will consist of 11 members: Seven DISH directors, three EchoStar independent directors, and Hamid Akhavan.
The transaction is subject to regulatory approvals, the effectiveness of a registration statement on Form S-4 to register the issuance of DISH Class A Common Stock in connection with the transaction, the receipt of specified foreign direct investment approvals and specified approvals required under domestic and foreign satellite and communication laws and regulations, the shares of DISH Class A Common Stock to be issued pursuant to the Merger being approved for listing on the Nasdaq Global Select Market and customary closing conditions. The transaction was unanimously approved by the Boards of Directors of both companies. The majority shareholder group, which currently has approximately 90% and 93% of the combined voting power of DISH Network and EchoStar Corporation, respectively, has approved adoption of the merger agreement and the issuance of DISH Network common stock required for the transaction via written consent. The transaction is expected to be completed by year-end.
Evercore Group L.L.C. is serving as exclusive financial advisor and fairness opinion provider, and Mark I. Greene, ?Aaron M. Gruber and Jin-Kyu Baek of Cravath, Swaine & Moore LLP are serving as legal counsel to the special committee of the Board of Directors of EchoStar. Daniel G. Dufner Jr. and Michael A. Deyong of White & Case LLP is serving as legal counsel to EchoStar. J.P. Morgan Securities LLC is serving as exclusive financial advisor and fairness opinion provider, and ?Andrew J. Nussbaum and?Zachary S. Podolsky of Wachtell, Lipton, Rosen & Katz are serving as legal counsel to the special committee of the Board of Directors of DISH Network. Scott D. Miller and Scott B. Crofton of Sullivan & Cromwell LLP are serving as legal counsel to DISH Network. Reported Earnings • Aug 08
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: US$376. Revenue: US$3.91b (down 7.1% from 2Q 2022). Net income: US$200.3m (down 62% from 2Q 2022). Profit margin: 5.1% (down from 12% in 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 14%. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Media industry in the US. Price Target Changed • Jul 31
Price target decreased by 8.8% to US$16.48 Down from US$18.07, the current price target is an average from 16 analysts. New target price is 108% above last closing price of US$7.93. Stock is down 54% over the past year. The company is forecast to post earnings per share of US$0.88 for next year compared to US$4.34 last year. Price Target Changed • Jul 11
Price target increased by 11% to US$20.06 Up from US$18.07, the current price target is an average from 16 analysts. New target price is 177% above last closing price of US$7.25. Stock is down 58% over the past year. The company is forecast to post earnings per share of US$0.87 for next year compared to US$4.34 last year. Announcement • Jun 20
DISH Network Corporation(NasdaqGS:DISH) dropped from S&P 500 Communication Services (Sector) DISH Network Corporation(NasdaqGS:DISH) dropped from S&P 500 Communication Services (Sector) New Risk • Jun 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Earnings are forecast to decline by an average of 84% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (11% average weekly change). Recent Insider Transactions • Jun 09
Co-Founder recently bought US$1.8m worth of stock On the 1st of June, James DeFranco bought around 300k shares on-market at roughly US$6.00 per share. This transaction amounted to 2.4% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$19m. James has been a buyer over the last 12 months, purchasing a net total of US$60m worth in shares. Announcement • May 19
Levi & Korsinsky, LLP Notifies Dish Network Corporation Investors of A Class Action Lawsuit and Upcoming Deadline Levi & Korsinsky, LLP notified investors in DISH Network Corporation of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Dish investors who were adversely affected by alleged securities fraud between February 22, 2021 and February 27, 2023. CASE DETAILS: The filed complaint alleges that defendants made false statements and/or concealed that: (i) the Company overstated its operational efficiency and maintained deficient cybersecurity and information technology infrastructure; (ii) as a result of the foregoing, the Company was unable to properly secure customer data, leaving it vulnerable to access by malicious third parties; (iii) the foregoing cybersecurity deficiencies also both rendered Dish's operations susceptible to widespread service outages and hindered the Company's ability to respond to such outages; and (iv) as a result, the company's public statements were materially false and misleading at all relevant times. Recent Insider Transactions • May 18
Co-Founder recently bought US$19m worth of stock On the 12th of May, James DeFranco bought around 3m shares on-market at roughly US$6.20 per share. This transaction amounted to 31% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. James has been a buyer over the last 12 months, purchasing a net total of US$58m worth in shares. Major Estimate Revision • May 15
Consensus EPS estimates fall by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$16.1b to US$15.6b. EPS estimate also fell from US$1.11 per share to US$0.904 per share. Net income forecast to shrink 80% next year vs 11% growth forecast for Media industry in the US . Consensus price target down from US$21.53 to US$18.73. Share price fell 15% to US$6.16 over the past week. Reported Earnings • May 10
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: US$0.42 (down from US$0.82 in 1Q 2022). Revenue: US$3.96b (down 8.6% from 1Q 2022). Net income: US$222.7m (down 49% from 1Q 2022). Profit margin: 5.6% (down from 10.0% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) also missed analyst estimates by 13%. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Media industry in the US. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 36% per year, which means it is significantly lagging earnings. Price Target Changed • May 10
Price target decreased by 10% to US$19.73 Down from US$22.00, the current price target is an average from 15 analysts. New target price is 205% above last closing price of US$6.46. Stock is down 70% over the past year. The company is forecast to post earnings per share of US$0.93 for next year compared to US$4.34 last year. Major Estimate Revision • Apr 13
Consensus EPS estimates fall by 10% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from US$1.23 to US$1.11 per share. Revenue forecast steady at US$16.1b. Net income forecast to shrink 70% next year vs 12% decline forecast for Media industry in the US. Consensus price target down from US$24.63 to US$22.00. Share price fell 4.9% to US$8.34 over the past week. Price Target Changed • Apr 10
Price target decreased by 15% to US$22.60 Down from US$26.44, the current price target is an average from 15 analysts. New target price is 155% above last closing price of US$8.86. Stock is down 72% over the past year. The company is forecast to post earnings per share of US$1.29 for next year compared to US$4.34 last year. Price Target Changed • Mar 22
Price target decreased by 9.6% to US$25.69 Down from US$28.40, the current price target is an average from 16 analysts. New target price is 168% above last closing price of US$9.58. Stock is down 69% over the past year. The company is forecast to post earnings per share of US$1.24 for next year compared to US$4.34 last year. Recent Insider Transactions • Mar 13
Co-Founder recently bought US$8.8m worth of stock On the 8th of March, James DeFranco bought around 800k shares on-market at roughly US$11.05 per share. This transaction amounted to 9.0% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$16m. James has been a buyer over the last 12 months, purchasing a net total of US$63m worth in shares. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to US$11.18, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Media industry in the US. Total loss to shareholders of 64% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$16.85 per share. Price Target Changed • Mar 01
Price target decreased by 11% to US$28.40 Down from US$31.93, the current price target is an average from 15 analysts. New target price is 149% above last closing price of US$11.41. Stock is down 63% over the past year. The company is forecast to post earnings per share of US$1.25 for next year compared to US$4.34 last year. Reported Earnings • Feb 24
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: US$4.35 (down from US$4.57 in FY 2021). Revenue: US$16.7b (down 6.7% from FY 2021). Net income: US$2.30b (down 4.5% from FY 2021). Profit margin: 14% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 37%. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Media industry in the US. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 26% per year, which means it is significantly lagging earnings. Announcement • Feb 18
DISH Network Corporation to Report Q4, 2022 Results on Feb 23, 2023 DISH Network Corporation announced that they will report Q4, 2022 results on Feb 23, 2023 Announcement • Jan 11
Dish Network Corporation Appoints Stephen Bye to Its Board of Directors DISH Network Corporation announced it has named Stephen Bye to its Board of Directors, effective January 18, 2023. Since 2019, Stephen has served as the DISH Wireless Chief Commercial Officer supporting the development and commercialization of the company's standalone 5G network. Stephen will step down from his role as Chief Commercial Officer at DISH Wireless on January 17, 2023, and assume the role of President of the Connectivity division at Ziff Davis. Recent Insider Transactions Derivative • Jan 05
President exercised options and sold US$95k worth of stock On the 1st of January, W. Carlson exercised options to acquire 7k shares at no cost and sold these for an average price of US$14.04 per share. This trade did not impact their existing holding. For the year to December 2016, Carlson's total compensation was 35% salary and 65% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2022, Carlson has owned 22.81k shares directly. Company insiders have collectively bought US$39m more than they sold, via options and on-market transactions, in the last 12 months. Price Target Changed • Nov 16
Price target decreased to US$32.86 Down from US$42.25, the current price target is an average from 14 analysts. New target price is 109% above last closing price of US$15.72. Stock is down 56% over the past year. The company is forecast to post earnings per share of US$2.63 for next year compared to US$4.57 last year. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 5 highly experienced directors. President, CEO & Director W. Carlson was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improved over the past week After last week's 17% share price gain to US$16.06, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 11x in the Media industry in the US. Total loss to shareholders of 55% over the past three years. Reported Earnings • Nov 03
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: US$0.78 (down from US$1.06 in 3Q 2021). Revenue: US$4.10b (down 8.0% from 3Q 2021). Net income: US$412.2m (down 26% from 3Q 2021). Profit margin: 10% (down from 13% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 16%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Media industry in the US. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. Board Change • Nov 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 5 highly experienced directors. President, CEO & Director W. Carlson was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment deteriorated over the past week After last week's 16% share price decline to US$14.27, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 9x in the Media industry in the US. Total loss to shareholders of 58% over the past three years. Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment improved over the past week After last week's 15% share price gain to US$19.61, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 11x in the Media industry in the US. Total loss to shareholders of 46% over the past three years. Recent Insider Transactions • Sep 10
Co-Founder recently bought US$1.8m worth of stock On the 6th of September, James DeFranco bought around 110k shares on-market at roughly US$16.73 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$3.5m. James has been a buyer over the last 12 months, purchasing a net total of US$39m worth in shares. Recent Insider Transactions • Aug 21
Co-Founder recently bought US$3.0m worth of stock On the 17th of August, James DeFranco bought around 160k shares on-market at roughly US$18.53 per share. This was the largest purchase by an insider in the last 3 months. James has been a buyer over the last 12 months, purchasing a net total of US$28m worth in shares. Recent Insider Transactions • Aug 11
Co-Founder recently bought US$80k worth of stock On the 5th of August, James DeFranco bought around 4k shares on-market at roughly US$18.66 per share. In the last 3 months, they made an even bigger purchase worth US$24m. James has been a buyer over the last 12 months, purchasing a net total of US$24m worth in shares. Price Target Changed • Aug 09
Price target decreased to US$43.24 Down from US$47.29, the current price target is an average from 16 analysts. New target price is 131% above last closing price of US$18.71. Stock is down 57% over the past year. The company is forecast to post earnings per share of US$2.52 for next year compared to US$4.57 last year. Seeking Alpha • Aug 08
DISH Network: Weak Earnings Outlook But A Near-Term Bullish Play The Communication Services sector has underperformed the S&P 500 over the last year.
Telecom stocks continue to be out of favor, but one company that beat EPS estimates last week sets up for a short-term rebound.
Its longer-term valuation looks like a value trap, however.
The ugly stepchild of the “Tech, Media, and Telecom” (TMT) supersector is undoubtedly Communication Services ((CS)). According to Goldman Sachs Investment Research, the sector has experienced the largest EPS cuts this reporting season among all 11 market groupings. Moreover, price-action has been downright dreadful in CS for the last year. The below graphic from Goldman illustrates relative sector performances. While growth sectors like Consumer Discretionary and Information Technology have bounced back sharply over the last few months, CS just keeps lagging.
S&P 500 Sector Relative Performances: Communication Services Keeps Lagging
Goldman Sachs Investment Research
DISH Network (DISH) is one CS company that is down huge over the last year. Shares fell from the mid-$40s in August 2021 to a low just above $16 when the S&P 500 bottomed out in June. Is there value in this household name? Let’s dig in.
According to Bank of America Global Research, DISH Network provides television service in the US to 12 million customers. The company also holds valuable wireless spectrum assets including 600MHz, 700MHz, AWS, and mmWave. DISH bought part of Sprint's prepaid wireless business and plans to build out its wireless network.
Analysts at BofA expect earnings to decline in the years ahead – as does the Bloomberg consensus forecast. While the stock trades at an exceptionally low trailing 12-month P/E ratio near 6, per The Wall Street Journal, the $10.2 billion market cap company based in Colorado does not pay a dividend and is arguably pricey given such a weak fundamental outlook. Its EV/EBITDA multiple is a bit high on an absolute basis and the firm’s free cash flow yield is set to drop. On the bright side, DISH crushed earnings estimates last week.
DISH: Earnings, Valuation, Free Cash Flow Forecasts
BofA Global Research
After reporting $0.82 vs. the $0.65 consensus expectation, DISH’s corporate event calendar is light until the next quarterly earnings report date of November 3, BMO, according to Wall Street Horizon.
Corporate Event Calendar Light Through Q3
Wall Street Horizon
The Technical Take
While the fundamental backdrop is quite soft for DISH and its valuation looks like more of a value trap than a bargain, the technical story actually looks somewhat favorable right now. Shares have rallied to their highest level since mid-June, climbing above resistance in the low $19s. The stock is up four straight sessions as of this writing. There’s still work to be done though. DISH remains precariously close to the noted support price, so a drop back below it would be worrisome. Reported Earnings • Aug 04
Second quarter 2022 earnings: EPS exceeds analyst expectations Second quarter 2022 results: EPS: US$0.99 (down from US$1.27 in 2Q 2021). Revenue: US$4.21b (down 6.2% from 2Q 2021). Net income: US$522.8m (down 22% from 2Q 2021). Profit margin: 12% (down from 15% in 2Q 2021). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 28%. Over the next year, revenue is expected to shrink by 3.1% compared to a 2.9% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment deteriorated over the past week After last week's 15% share price decline to US$18.29, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 11x in the Media industry in the US. Total loss to shareholders of 53% over the past three years. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 20% share price gain to US$20.89, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Media industry in the US. Total loss to shareholders of 40% over the past three years. Recent Insider Transactions • May 17
Independent Director recently bought US$95k worth of stock On the 12th of May, George Brokaw bought around 5k shares on-market at roughly US$19.07 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$73k more in shares than they have sold in the last 12 months. Price Target Changed • May 10
Price target decreased to US$48.06 Down from US$51.76, the current price target is an average from 15 analysts. New target price is 121% above last closing price of US$21.75. Stock is down 53% over the past year. The company is forecast to post earnings per share of US$2.59 for next year compared to US$4.57 last year. Reported Earnings • May 06
First quarter 2022 earnings: Revenues miss analyst expectations First quarter 2022 results: Revenue: US$4.33b (down 3.7% from 1Q 2021). Net income: US$432.7m (down 31% from 1Q 2021). Profit margin: 10.0% (down from 14% in 1Q 2021). Revenue missed analyst estimates by 1.3%. Over the next year, revenue is expected to shrink by 1.2% compared to a 4.3% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 26
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: US$4.56 (up from US$3.36 in FY 2020). Revenue: US$17.9b (up 15% from FY 2020). Net income: US$2.41b (up 37% from FY 2020). Profit margin: 14% (up from 11% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is forecast to stay flat compared to a 6.5% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth.