Small stationary light disappearing and reappearing irratically

Three people on bikes were stopped on trail pointing up in sky. My friend and I walked toward them and asked what they were looking at. They pointed to a single stationary light in sky—larger than a satellite, round and visible in clear daylight sky. The light pulsed slightly, disappeared for about a second, then reappeared in same area but relatively far away in a short second. The movement within the same quadrant continued, shifting randomly down and left, up and right, with no flight path. It was just holding position within and area and quickly moving, disappearing and reappearing. We watched for about 3-5 minutes, then continued on our walk