Globalstar Inc. (AMEX:GSAT) is a telecommunications company based in Covington, Louisiana. It operates low Earth orbit satellites to provide phone and data transmission services. The company is partially owned by Apple and competes with major players like SpaceX's Starlink in the satellite-based services market. Globalstar's recent activities include a significant contract with MDA Space for next-generation satellite development.
On February 11, 2025, Globalstar executed a reverse stock split at a ratio of 15 for 1. This corporate action is often used to increase the stock price by reducing the number of shares outstanding. Despite this, GSAT's current price is $1.56, with a market capitalization of approximately $2.95 billion. The stock has seen a 3.31% increase, with a trading volume of 32,605,225 shares today.
MDA Space has expanded its contract with Globalstar, increasing the total value to approximately C$1.1 billion, or around $767 million. This contract involves the development of over 50 advanced digital satellites. MDA Space will add about C$750 million to its backlog in the first quarter of fiscal 2025, supplementing the C$350 million already added in late 2023.
The collaboration with MDA Space is a strategic move for Globalstar as it aims to enhance its satellite constellation. This development positions Globalstar to better compete in the global race for satellite-based services. The contract with MDA Space is a significant step in Globalstar's efforts to expand its capabilities and market presence.
