Telesat Corporation (NASDAQ:TSAT) Given Average Rating of "Reduce" by Brokerages

Key Points

• Telesat has a consensus analyst rating of "Reduce" from five covering analysts, with two sells and three holds. The average 1-year price target is $33.50.
• The stock fell 4.7% to $39.40 in Monday trading, with volume below its average. Telesat has a market cap of about $584.9 million and remains volatile with a beta of 2.03.
• Recent earnings were weak: Telesat reported EPS of -$2.21, missing expectations, though revenue of $62.62 million was slightly above estimates. Analysts currently expect the company to post -$3.73 EPS for the year.

Shares of Telesat Corporation (NASDAQ:TSAT - Get Free Report) have received a consensus recommendation of "Reduce" from the five analysts that are presently covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell rating and three have given a hold rating to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $33.50.

A number of equities analysts recently issued reports on the stock. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Telesat from $19.00 to $37.00 and gave the stock a "hold" rating in a research report on Thursday, March 19th. New Street Research started coverage on Telesat in a report on Wednesday, May 13th. They issued a "sell" rating and a $30.00 price target for the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Telesat in a report on Thursday, June 18th. Zacks Research lowered Telesat from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 18th. Finally, Wall Street Zen downgraded shares of Telesat from a "sell" rating to a "strong sell" rating in a research note on Saturday, April 25th.

Telesat Stock Down 4.7%

NASDAQ TSAT traded down $1.95 during trading on Monday, hitting $39.40. 99,754 shares of the company traded hands, compared to its average volume of 217,181. The company has a market capitalization of $584.88 million, a P/E ratio of -4.36 and a beta of 2.03. The business has a fifty day simple moving average of $48.80 and a 200 day simple moving average of $39.86. Telesat has a 12 month low of $19.59 and a 12 month high of $59.12. The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 0.77.

Telesat (NASDAQ:TSAT - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported ($2.21) EPS for the quarter, missing the consensus estimate of ($0.67) by ($1.54). The company had revenue of $62.62 million for the quarter, compared to analyst estimates of $62.03 million. Telesat had a negative net margin of 47.57% and a negative return on equity of 4.02%. As a group, sell-side analysts predict that Telesat will post -3.73 EPS for the current year.

Institutional Investors Weigh In On Telesat

Large investors have recently modified their holdings of the stock. Allied Private Wealth LLC bought a new stake in Telesat in the second quarter valued at $51,000. Royal Bank of Canada lifted its holdings in Telesat by 32.2% during the 4th quarter. Royal Bank of Canada now owns 2,922 shares of the company's stock valued at $85,000 after purchasing an additional 712 shares during the last quarter. BNP Paribas Financial Markets boosted its position in Telesat by 1,335.3% in the third quarter. BNP Paribas Financial Markets now owns 3,818 shares of the company's stock valued at $101,000 after buying an additional 3,552 shares in the last quarter. Acadian Asset Management LLC grew its stake in Telesat by 63.3% during the first quarter. Acadian Asset Management LLC now owns 6,381 shares of the company's stock worth $119,000 after buying an additional 2,473 shares during the last quarter. Finally, Virtu Financial LLC bought a new position in shares of Telesat in the fourth quarter valued at approximately $211,000.

Telesat Company Profile

Telesat is a leading global satellite operator that designs, builds and delivers high-performance satellite communications solutions across multiple markets. The company operates a fleet of geostationary satellites to provide video distribution, data networking and managed broadband services to media companies, network operators, governments and enterprise customers. Telesat's infrastructure supports television distribution, cellular backhaul, rural broadband and corporate network applications.

In addition to its geostationary offerings, Telesat is developing a low Earth orbit (LEO) satellite constellation known as Lightspeed.

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