Telesat (NASDAQ:TSAT) Hits New 52-Week High - Time to Buy?

Key Points

• Shares hit a new 52-week high — Telesat traded as high as $47.90 (last at $47.05) on Tuesday with about 31,481 shares changing hands.
• Wall Street remains cautious — analysts have a consensus rating of "Reduce" with a $37 consensus target (one Hold, one Sell), despite Deutsche Bank raising its target to $37 from $19.
• Mixed fundamentals — Telesat reported a Q1 EPS loss of $0.97 (better than the -$1.05 estimate) but revenue of $68.48M missed the $91.95M estimate, and the company shows negative margins and very low liquidity (current ratio 0.25).

Shares of Telesat Corporation (NASDAQ:TSAT - Get Free Report) hit a new 52-week high during trading on Tuesday . The company traded as high as $47.90 and last traded at $47.0470, with a volume of 31481 shares trading hands. The stock had previously closed at $44.95.

Wall Street Analyst Weigh In

TSAT has been the subject of a number of research reports. Weiss Ratings restated a "sell (d+)" rating on shares of Telesat in a research note on Wednesday, January 21st. Deutsche Bank Aktiengesellschaft lifted their target price on Telesat from $19.00 to $37.00 and gave the company a "hold" rating in a research note on Thursday, March 19th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Telesat currently has a consensus rating of "Reduce" and a consensus target price of $37.00.

Telesat Price Performance

The company has a market cap of $653.96 million, a P/E ratio of -6.10 and a beta of 1.89. The company has a fifty day simple moving average of $34.31 and a 200-day simple moving average of $31.17. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.25 and a quick ratio of 0.25.

Telesat (NASDAQ:TSAT - Get Free Report) last posted its quarterly earnings results on Tuesday, March 17th. The company reported ($0.97) earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.05) by $0.08. The company had revenue of $68.48 million for the quarter, compared to analysts' expectations of $91.95 million. Telesat had a negative return on equity of 1.10% and a negative net margin of 37.25%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Royal Bank of Canada increased its holdings in shares of Telesat by 32.2% in the fourth quarter. Royal Bank of Canada now owns 2,922 shares of the company's stock valued at $85,000 after buying an additional 712 shares in the last quarter. BNP Paribas Financial Markets raised its stake in Telesat by 1,335.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 3,818 shares of the company's stock valued at $101,000 after purchasing an additional 3,552 shares during the period. Acadian Asset Management LLC raised its stake in Telesat by 63.3% during the 1st quarter. Acadian Asset Management LLC now owns 6,381 shares of the company's stock valued at $119,000 after purchasing an additional 2,473 shares during the period. Virtu Financial LLC acquired a new stake in Telesat during the 4th quarter valued at $211,000. Finally, Quarry LP acquired a new stake in Telesat during the 3rd quarter valued at $212,000.

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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