Aug. 30, 2025 at 2:47 PM ET5 min read

EchoStar Partners with MDA on $1.3B Satellite Constellation for 5G

Tim BohenAvatar
Written by Tim Bohen Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

EchoStar Corporation stocks have been trading up by 8.6 percent amid positive market sentiment and strategic developments.

Key Highlights

  • A new contract with MDA will create a low Earth orbit satellite constellation valued at an initial $1.3 billion, which could rise to $2.5 billion.
  • EchoStar reports a net subscriber increase and improvements in Pay-TV average revenue per user (ARPU) and churn rates across its operations.
  • Deutsche Bank adjusts EchoStar’s price target to $43 from $49, maintaining a buy rating amidst recent market performance.
  • Boost Mobile is expanding its device range to include Google Pixel phones, boosting its competitive position in the mobile market.
  • The new Sling TV service offers competitive entertainment packages starting at $19.99/month, promising to capture more of the streaming market.

Technology industry expert:

Analyst sentiment – positive

EchoStar (SATS) exhibits a mixed market position characterized by notable revenue streams but constrained profitability. With total revenues of $15.8 billion, the company’s gross margin stands at 24.8%, reflecting healthy revenue generation. However, negative EBITDA and pretax profit margins underscore persistent cost challenges. A troubling free cash flow position of -$286 million and constrained operating cash flow further exacerbate liquidity concerns. With a total debt-to-equity ratio of 1.5 and an enterprise value of $43.08 billion, EchoStar has considerable leverage, but the price-to-book ratio of 0.83 indicates undervaluation relative to assets.

In technical terms, EchoStar’s stock displays a recent upward trajectory with significant volatility. Analyzing weekly price patterns, the stock surged from an open of $29.88 to a weekly high of $61.88. Notably, the rapid rise in stock price accompanied by increased volume indicates strong bullish momentum. A key resistance level is evident around $61.87, while support is anticipated near $56.95. Short-term traders might capitalize on this momentum, employing a strategy to buy on breakouts above $62 with a stop-loss at $58 to manage risk, as technical indicators suggest a continued uptrend.

Recent strategic developments position EchoStar favorably in the satellite communication sector. The $1.3 billion contract with MDA to develop a new satellite constellation signifies a long-term catalyst, offering 5G connectivity and global broadband coverage. This secures future revenue streams potentially expanding to $2.5 billion if options are exercised. Despite a Q2 earnings miss and net loss, growth in the Retail Wireless and enterprise aviation sectors indicate operational progress. Compared to industry benchmarks, EchoStar is on a positive trajectory with Deutsche Bank’s revised price target to $43 providing strategic guidance. Key support and resistance levels to monitor are $58 and $62. Considering these factors, the company’s outlook explores moderate optimism and growth potential.

Candlestick Chart

More Breaking News

Weekly Update Aug 25 – Aug 29, 2025: On Saturday, August 30, 2025 EchoStar Corporation stock [NASDAQ: SATS] is trending up by 8.6%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

EchoStar’s recent performance showed mixed results. The company’s revenue for the second quarter reached $3.72 billion, slightly below expectations of $3.83 billion. Meanwhile, the net income from continuing operations revealed a loss of $306 million, or $1.06 per share, missing the projected loss of $1.04 per share. Despite these financial setbacks, significant improvements in net subscriber growth and decreased churn rates were reported. The operating revenue was strong, totaling $3.72 billion, showcasing the company’s solid footing in adapting to challenging market conditions.

Analyzing the CSV chart data, SATS shares revealed substantial volatility with an impressive rise in value on August 26, peaking at $54.50. This indicates strong investor confidence, potentially driven by strategic developments and the EchoStar-MDA contract announcement. These developments could position EchoStar favorably in expanding its global communication service arm. Financial ratios showed a negative EBIT margin at -3.7%, but promising gross margins and strategic measures can steer profitability.

Conclusion

EchoStar’s latest strategic decisions, particularly its partnership with MDA for satellite developments, underscore a pivotal transformation in enhancing connectivity services. These initiatives reflect a well-articulated strategy aimed at expanding market share and overcoming financial headwinds. As Tim Bohen, lead trainer with StocksToTrade says, “The best trades are the ones you can make without emotion. Plan it, then execute it as if it’s routine.” The emphasis now lies on EchoStar overcoming quarterly losses through meticulous execution of its strategic frameworks. With experienced navigation, these approaches can foster a foundation for future profitability and trader confidence, thereby benefiting its economic chart closely watched by traders and analysts alike.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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