Telesat (NASDAQ:TSAT) Shares Gap Up - Here's What Happened

Key Points

• Telesat shares gapped higher, opening at $52.05 versus a prior close of $48.83, before trading near $50.73.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce” and an average price target of $33.50, well below its recent trading level.
• Telesat reported a significant quarterly EPS loss of $7.85, missing estimates by $7.14, despite revenue of $57.3 million exceeding expectations.

Telesat Corporation (NASDAQ:TSAT - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $48.83, but opened at $52.05. Telesat shares last traded at $50.7270, with a volume of 5,653 shares traded.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Scotiabank began coverage on shares of Telesat in a research note on Monday, July 13th. They set a "hold" rating on the stock. Zacks Research lowered shares of Telesat from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 19th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Telesat in a research report on Monday, September 14th. Royal Bank Of Canada started coverage on Telesat in a report on Thursday, August 27th. They issued a "moderate buy" rating for the company. Finally, Stifel Nicolaus assumed coverage on Telesat in a report on Thursday, July 16th. They issued a "buy" rating for the company. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $33.50.

Telesat Stock Performance

The stock's 50-day moving average price is $45.34 and its 200-day moving average price is $45.30. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.90. The company has a market capitalization of $752.76 million, a P/E ratio of -2.84 and a beta of 2.06.

Telesat (NASDAQ:TSAT - Get Free Report) last issued its earnings results on Thursday, August 13th. The company reported ($7.85) EPS for the quarter, missing analysts' consensus estimates of ($0.71) by ($7.14). The company had revenue of $57.30 million during the quarter, compared to analyst estimates of $56.11 million. Telesat had a negative net margin of 102.62% and a negative return on equity of 15.53%. As a group, equities analysts expect that Telesat Corporation will post -11.93 EPS for the current year.

Institutional Trading of Telesat

Large investors have recently modified their holdings of the company. Allied Private Wealth LLC acquired a new position in Telesat during the 2nd quarter valued at about $51,000. Royal Bank of Canada increased its stake in shares of Telesat by 100.2% in the first quarter. Royal Bank of Canada now owns 5,850 shares of the company's stock valued at $212,000 after purchasing an additional 2,928 shares during the period. Militia Capital Management LLC acquired a new stake in shares of Telesat in the first quarter valued at approximately $560,000. Engineers Gate Manager LP bought a new stake in shares of Telesat during the second quarter valued at approximately $591,000. Finally, Van Berkom & Associates Inc. bought a new stake in shares of Telesat during the first quarter valued at approximately $991,000.

Telesat Company Profile

Telesat is a Canadian satellite operator that provides communications services to customers worldwide. Founded in 1969 and headquartered in Ottawa, the company operates geostationary satellites under the Telstar brand and delivers connectivity for telecommunications companies, broadcasters, enterprises, governments and other institutional users.

The company's services include satellite capacity, broadband connectivity, enterprise networking, video distribution and communications solutions for government and maritime customers.

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