ViaSat, Inc. (VSAT:NASDAQ)
Price at Preparation: $9.90 (Jan 6th, 2025)
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What they do
ViaSat, Inc. (VSAT:NASDAQ) is a global communications company and is broken down into the following segments:
- Communication Services: Provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, and for fixed and residential broadband customers. In addition, this includes the development and sale of a wide array of advanced satellite and wireless products, and network and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services.
- Defense and Advanced Technologies: Develop and offer a diverse array of resilient, vertically integrated solutions to government and commercial customers, leveraging the Company’s technical competencies in encryption, cyber security, tactical gateway, modems and waveforms. The primary business focus are information security and cyber defense, space and mission systems, tactical networking and advanced technologies.
Welcome to 2025 and back to the first Theta Bandits Top Pick Tuesday of the year, where we search the markets to bring you fresh ideas that could be a potential winner in any portfolio. Let’s try kick off the year in style.
Opinion
ViaSat, Inc. (VSAT:NASDAQ) has been on the radar for a while now as this has been in a downtrend for most of 2024 with glimmers of hope. Their commercial use really got hammered because of SpaceX’s Starlink coming online which can provide higher speeds as they are in low earth orbit vs ViaSat’s satellites which are higher and therefore have a longer latency for communication. However, ViaSat is preferred as a defense and government contractor and always making improvements. Late last year it was reported the company was awarded a $568M defense contract which has seemed to stop the downtrend in stock price and provide a consolidation channel, which potentially could lead to a breakout. Reviewing how beaten up the stock is currently and the 12-month Price Targets (PT) for the average and high PT’s, the Risk / Reward ratio is too much to ignore.
The analyst street consensus has 3 Buys, 6 Holds, 0 Sells and 12-Month Price Targets (PT) as follows:
- Low: $9.00 USD (-9.09%)
- Average: $22.50 USD (+127.27.26%)
- High: $56.00 USD (+456.66.54%)
Plan
As usual, find the chart below with following colors:
- Blue: 52-week high.
- Red: 52-week low.
- Green: 12 Month PTs (high / avg / low).
- Orange: Support/resistance lines.
- Yellow: Our plan.
In the accompanying chart we have circled in yellow “watch for this”, which shows the down trend, consolidation and then potentially the breakout. Currently it looks like we are in the consolidation phase, so we want to be ready for the breakout. Since the breakout is only a potential for those more conservative traders, wait for the confirmation of the move before entering the trade – a little bit of profit at the low end is given up which makes sure the trade is going to the right way before putting money at risk. More aggressive traders can use other methods to enter the trade, which can be discussed in our discord server community. Once in the trade, those familiar with our methods know we like to mitigate risk on everything. This can be achieved by securing as much of the original investment as possible, until there are only profits remaining to do the heavy lifting for the remainder of the trade – risk free!
Identified in the chart from the current level and marked with an “X” are levels which have had a stronger support / resistance line. Near those levels is where there are targets to potentially secure profit with targets at: $11.81 USD, $15.32 USD, $19.47 USD and a bonus of the 12-month avg PT $22.50 USD (if you are feeling brave). Please make sure to use and update stop-losses to protect the initial investment.
This is only one method how to trade this stock. We discuss other potential methods to attack this stock through our discord server and we will discuss this trade live IF you sign up to attend our Theta Bandits Webinar – When we trade together, we learn together!
RISKS
The goal is to grow capital by securing profits along the way and limiting losses. Make sure to plan to trade within your risk tolerance, allowing time for success while updating limits and exit points to mitigate risk.
If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do 👇
Disclaimer: This article is for informational and educational purposes only, not investment advice. We recommend researching and consulting with a financial advisor before making investment decisions. All actions based on this information are at your own risk.
