Telesat (NASDAQ:TSAT) Stock Price Down 6.2% - Time to Sell?

Key Points

• Telesat shares fell 6.2% to approximately $48.49 in Friday trading, on volume well below the average session volume.
• Analyst sentiment is mostly negative: the stock has an average “Reduce” rating, with three Sell, two Hold and two Buy recommendations, and a consensus price target of $33.50.
• Telesat reported a significant quarterly loss, posting adjusted earnings of -$7.85 per share versus estimates of -$0.71, while maintaining revenue slightly above expectations; analysts expect a full-year loss of $11.93 per share.

Telesat Corporation (NASDAQ:TSAT - Get Free Report) shares were down 6.2% on Friday . The stock traded as low as $48.49 and last traded at $48.4860. Approximately 55,883 shares were traded during mid-day trading, a decline of 74% from the average session volume of 217,170 shares. The stock had previously closed at $51.67.

Analyst Ratings Changes

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

Telesat Price Performance

The stock has a market cap of $719.73 million, a PE ratio of -2.72 and a beta of 2.06. The stock's fifty day moving average is $44.91 and its 200-day moving average is $45.07. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.17 and a quick ratio of 0.17.

Telesat (NASDAQ:TSAT - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($7.85) earnings per share for the quarter, missing analysts' consensus estimates of ($0.71) by ($7.14). The company had revenue of $57.30 million for 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 anticipate that Telesat Corporation will post -11.93 EPS for the current year.

Institutional Investors Weigh In On Telesat

A number of institutional investors have recently modified their holdings of the company. Van Berkom & Associates Inc. purchased a new position in Telesat during the 1st quarter valued at about $991,000. Walleye Capital LLC increased its stake in Telesat by 210.1% during the first quarter. Walleye Capital LLC now owns 57,017 shares of the company's stock worth $2,064,000 after purchasing an additional 38,630 shares during the period. TD Waterhouse Canada Inc. lifted its position in shares of Telesat by 127.3% during the second quarter. TD Waterhouse Canada Inc. now owns 53,708 shares of the company's stock worth $2,516,000 after purchasing an additional 30,076 shares in the last quarter. Vestcor Inc boosted its stake in shares of Telesat by 14.3% in the fourth quarter. Vestcor Inc now owns 200,000 shares of the company's stock valued at $5,820,000 after purchasing an additional 25,000 shares during the period. Finally, Militia Capital Management LLC acquired a new position in shares of Telesat in the first quarter valued at approximately $560,000.

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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