Why Is VIASAT INC (VSAT) Stock Up Today?

VSAT stock rose 6.77% to $73.36 in morning trading on Thursday driven by a favorable legal ruling and new product demonstrations. A U.S. jury found Kioxia liable for $229 million in damages for infringing on Viasat’s flash-memory patents. Additionally Viasat announced a breakthrough in satellite communications by demonstrating the first integrated automotive satellite voice call with BMW Group.

What Happened

The stock opened at $67.00 with a -2.5% gap from the previous close but quickly reversed course as the session progressed. By midday the stock had reached a high of $73.66. The ruling against Kioxia was a key catalyst for the rally. The jury’s decision awards Viasat a significant cash settlement for patent infringement. This legal win adds to the company’s recent technological progress. Viasat showcased a new capability to enable satellite voice calls in connected vehicles using NB-IoT technology over its L-band network. The demonstration with BMW Group is a step toward future 5G-NR satellite services and seamless roaming. These developments highlight Viasat’s expanding role in the satellite and connected vehicle markets.

What The Data Shows

The stock is currently trading at $73.36 with a market cap of $9.5 billion. Despite a 2.7% year-to-date revenue increase the company remains unprofitable with an EPS of -0.25 and a net margin of -0.7%. The stock has traded between $14.00 and $93.03 over the past 52 weeks. The recent price trend has been negative with the stock falling 6.7% over the last eight sessions. Intraday volume has been light at 0.8 million shares traded so far which is 0.3 times the 3-month average. Insider transactions have been heavily skewed toward sales with 9 filings totaling $30.6 million in the last 90 days. The most recent insider sale occurred on July 6.

What To Watch

The stock’s near-term trajectory may depend on how the market digests the legal award and the potential for broader adoption of Viasat’s satellite voice technology in the automotive sector. Investors should also monitor the company’s upcoming earnings and cash flow developments given its unprofitable status.