Telesat (NASDAQ:TSAT) Stock Price Down 9.1% - Should You Sell?

Key Points

• Telesat shares fell 9.1% intraday to about $41.40, on trading volume 63% below the average daily level.
• Analyst sentiment remains mixed: the stock has three Buy, three Hold and two Sell ratings, resulting in a consensus “Hold” rating and a $33.50 target price.
• Telesat reported a sharp quarterly EPS miss, losing $7.85 per share versus the expected $0.71 loss, while revenue of $57.3 million slightly exceeded estimates. The company remains unprofitable, with a negative net margin of 102.62%.

Shares of Telesat Corporation (NASDAQ:TSAT - Get Free Report) fell 9.1% during mid-day trading on Thursday. The stock traded as low as $42.00 and last traded at $41.3950. 77,028 shares changed hands during trading, a decline of 63% from the average daily volume of 209,300 shares. The stock had previously closed at $45.55.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on TSAT shares. Canadian Imperial Bank of Commerce initiated coverage on Telesat in a report on Sunday. They issued a "sector outperform" rating for the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Telesat in a report on Monday, September 14th. Zacks Research upgraded Telesat from a "strong sell" rating to a "hold" rating in a research report on Monday, October 19th. Scotiabank began coverage on shares of Telesat in a research note on Monday, July 13th. They issued a "hold" rating on the stock. Finally, Royal Bank Of Canada started coverage on shares of Telesat in a research report on Thursday, August 27th. They issued a "moderate buy" rating on the stock. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $33.50.

Telesat Stock Down 9.0%

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 business has a fifty day simple moving average of $45.78 and a two-hundred day simple moving average of $42.57. The company has a market cap of $631.06 million, a PE ratio of -2.31 and a beta of 2.11.

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

Institutional Investors Weigh In On Telesat

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Senvest Management LLC raised its holdings in shares of Telesat by 2.2% during the 1st quarter. Senvest Management LLC now owns 137,668 shares of the company's stock worth $4,984,000 after acquiring an additional 3,000 shares during the period. TD Waterhouse Canada Inc. boosted its position in shares of Telesat by 18.0% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 63,361 shares of the company's stock valued at $2,938,000 after acquiring an additional 9,653 shares during the last quarter. Walleye Capital LLC boosted its position in shares of Telesat by 210.1% during the 1st quarter. Walleye Capital LLC now owns 57,017 shares of the company's stock valued at $2,064,000 after acquiring an additional 38,630 shares during the last quarter. Bank of America Corp DE boosted its position in shares of Telesat by 72.5% during the 1st quarter. Bank of America Corp DE now owns 34,794 shares of the company's stock valued at $1,260,000 after acquiring an additional 14,626 shares during the last quarter. Finally, Van Berkom & Associates Inc. purchased a new stake in shares of Telesat in the first quarter valued at about $991,000.

Telesat Company Profile

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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