Telesat (NASDAQ:TSAT) Shares Gap Up - What's Next?

Key Points

• Telesat shares jumped 30.7%, opening at $44.00 versus a prior close of $40.18 and later trading near $45.91.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and a consensus price target of $33.50, below its recent trading level.
• Telesat reported a quarterly loss of $2.21 per share, substantially worse than the $0.67 consensus estimate, despite revenue of $62.62 million slightly exceeding expectations.

Telesat Corporation (NASDAQ:TSAT - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $40.18, but opened at $44.00. Telesat shares last traded at $45.9120, with a volume of 151,214 shares traded.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Telesat in a research report on Thursday, June 18th. Stifel Nicolaus assumed coverage on Telesat in a report on Thursday, July 16th. They set a "buy" rating on the stock. New Street Research initiated coverage on Telesat in a research note on Wednesday, May 13th. They issued a "sell" rating and a $30.00 target price for the company. Zacks Research lowered Telesat from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 18th. Finally, Wall Street Zen cut Telesat from a "sell" rating to a "strong sell" rating in a report on Saturday, April 25th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $33.50.

Telesat Trading Up 30.7%

The company has a quick ratio of 0.25, a current ratio of 0.25 and a debt-to-equity ratio of 0.77. The business's fifty day moving average is $44.22 and its 200 day moving average is $40.67. The firm has a market capitalization of $779.25 million, a price-to-earnings ratio of -5.75 and a beta of 2.07.

Telesat (NASDAQ:TSAT - Get Free Report) last posted its quarterly earnings data 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 during the quarter, compared to the consensus estimate of $62.03 million. Telesat had a negative net margin of 47.57% and a negative return on equity of 4.02%. Equities analysts predict that Telesat Corporation will post -4.01 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Royal Bank of Canada increased its position in shares of Telesat by 32.2% during the 4th quarter. Royal Bank of Canada now owns 2,922 shares of the company's stock worth $85,000 after purchasing an additional 712 shares during the last quarter. Allied Private Wealth LLC bought a new position in shares of Telesat in the second quarter valued at $51,000. Acadian Asset Management LLC grew its stake in shares of Telesat by 63.3% in the first quarter. Acadian Asset Management LLC now owns 6,381 shares of the company's stock valued at $119,000 after buying an additional 2,473 shares in the last quarter. Senvest Management LLC increased its holdings in Telesat by 2.2% during the first quarter. Senvest Management LLC now owns 137,668 shares of the company's stock worth $4,984,000 after buying an additional 3,000 shares during the last quarter. Finally, BNP Paribas Financial Markets increased its holdings in Telesat by 1,335.3% during the third quarter. BNP Paribas Financial Markets now owns 3,818 shares of the company's stock worth $101,000 after buying an additional 3,552 shares during the last quarter.

About Telesat

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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