Globalstar Stock (-11%): CFO Sale Overrides Skydio News

Despite positive news of a successful technology trial with Skydio, Globalstar (GSAT) shares experienced aggressive distribution, closing down -11%. The move came on significantly higher than average volume, suggesting conviction from sellers. With a key insider selling into ostensibly bullish news, is the Skydio trial merely a liquidity event for insiders to exit?

The fundamental narrative on 12/17/2025 was paradoxically positive, yet the market reacted to a glaring signal of insider sentiment. The underlying business catalyst was constructive, but it was completely overshadowed by a C-suite action.

• GSAT and Skydio completed a trial validating Band n53 for drone operations, a positive step.
• The company’s CFO, Rebecca Clary, sold 4,829 shares, reducing her stake by 4.32%.
• A day prior, Deutsche Bank initiated coverage with a ‘Hold’ and a $62 price target.

Trade Mechanics & Money Flow

Trade Mechanics: What Happened?

The day’s mechanics point to a clear distribution event, not a passive drift lower. The volume signature confirms a rush for the exits, with high intraday volatility indicating a liquidity grab as the stock broke down.

• Relative Volume was elevated, with 1.44M shares traded versus a ~904k daily average.
• The stock exhibited extreme intraday volatility of 16.45%, from a high of $65.00 to a low of $55.82.
• Such a sharp price drop likely fueled a spike in demand for downside protection via put options.

How Is The Money Flowing?

The footprint has the distinct markings of ‘Smart Money’ distribution. The CFO’s sale, timed perfectly with positive news, provided the necessary liquidity for an exit, a classic institutional tactic. Retail was likely caught offside, buying the news while insiders sold.

• The catalyst was the CFO’s Form 144 filing to sell shares valued at approximately $273,510.
• The prior day’s analyst target of $62 acted as immediate overhead supply which failed to hold.
• With insiders owning a commanding ~70% of the company, their actions carry immense weight.

Understanding trade mechanics, money flow, and price behavior can give you and edge. See more.

What Next?

FADE. The CFO selling directly into a positive press release is a significant red flag that overrides the fundamental development. This suggests the long-term value of the Skydio partnership may be less impactful than the market hoped, or that insiders see the current valuation as a prime opportunity to sell. The price action signals institutional distribution, not a healthy pullback. Watch the $55.82 level, the intraday low of the sell-off. A break below this level would indicate a failure of the initial dip-buyers and could open the door for a swift move down to the psychological $50 support zone, as stop-loss orders would likely be triggered.

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