Telesat (NASDAQ:TSAT) Stock Jumps 4.7% - Here's Why

Key Points

• Telesat shares rose 4.7% to $44.5550 in mid-day trading, reaching as high as $45.92, although trading volume was 85% below the average session volume.
• Analyst views remain mixed, with three Buy, three Hold and two Sell ratings. The consensus rating is Hold, with a $33.50 price target—well below the stock’s trading price.
• The company reported a significant quarterly loss of $7.85 per share versus the $0.71 expected loss, despite revenue exceeding estimates; analysts expect a full-year loss of $11.93 per share.

Telesat Corporation (NASDAQ:TSAT - Get Free Report)'s share price shot up 4.7% during mid-day trading on Monday. The company traded as high as $45.92 and last traded at $44.5550. 31,839 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 209,211 shares. The stock had previously closed at $42.55.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on TSAT shares. Weiss Ratings reissued a "sell (d-)" rating on shares of Telesat in a report on Monday, September 14th. Scotiabank assumed coverage on Telesat in a report on Monday, July 13th. They set a "hold" rating on the stock. Royal Bank Of Canada initiated coverage on Telesat in a research note on Thursday, August 27th. They set a "moderate buy" rating on the stock. Canadian Imperial Bank of Commerce assumed coverage on shares of Telesat in a research report on Sunday. They issued a "sector outperform" rating on the stock. Finally, Stifel Nicolaus initiated coverage on shares of Telesat in a report on Thursday, July 16th. They issued a "buy" rating for the company. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Telesat currently has a consensus rating of "Hold" and a consensus price target of $33.50.

Telesat Price Performance

The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.17 and a current ratio of 0.17. The stock has a market capitalization of $682.74 million, a price-to-earnings ratio of -2.52 and a beta of 2.11. The business's 50 day simple moving average is $45.89 and its 200-day simple moving average is $46.76.

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

Hedge Funds Weigh In On Telesat

Large investors have recently bought and sold shares of the stock. State of Alaska Department of Revenue bought a new stake in Telesat during the third quarter worth approximately $34,000. Allied Private Wealth LLC bought a new position in Telesat during the 2nd quarter valued at $51,000. Royal Bank of Canada increased its position in shares of Telesat by 100.2% during the 1st 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 position in shares of Telesat during the 1st quarter valued at $560,000. Finally, Engineers Gate Manager LP acquired a new position in shares of Telesat during the 2nd quarter valued at $591,000.

About Telesat

Telesat is a Canadian satellite communications operator that provides connectivity and related services to telecommunications companies, broadcasters, governments, enterprises and other organizations worldwide. The company operates a fleet of geostationary satellites and delivers satellite capacity for broadband communications, video distribution, enterprise networking, mobility and government applications.

In addition to its geostationary satellite services, Telesat is developing Telesat Lightspeed, a planned low Earth orbit satellite network designed to provide high-speed, low-latency broadband connectivity.

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