Could the Tide be Turning for Heavily Shorted GOGO Stock?
Gogo recently reported upbeat quarterly results
Gogo Inc (NASDAQ:GOGO) has anywhere between 62% to 76% of its float tied up in short interest, depending on what data you use, making it one of the most heavily shorted stocks on the Street. However, the in-flight WiFi provider just delivered strong quarterly results yesterday and raised its free cash flow forecast for the year. In response, William Blair upgrade its stance on GOGO stock to "outperform" from "market perform," and projected it'll reach double-digit territory in the next couple years, citing Delta Air Lines' (DAL) recent announcement that it'll test free WiFi on flights as a potential catalyst to shift sentiment around the security.
The stock was last seen trading up 4.5% at $5.39, bringing its year-to-date lead north of 80%. Pullbacks this year have been contained by the 50-day moving average, and the shares will now try to take out the overhead 320-day moving average. Still, just one of the seven analysts in coverage recommended buying Gogo coming into today, so there's plenty of potential for more upgrades going forward -- on top of the clear short-squeeze possibility.
