Telesat (NASDAQ:TSAT) Shares Up 10.1% - Here's Why

Key Points

• Shares jumped 10.1% intraday to about $51.72 (from a close of $46.99) on Thursday, with roughly 142,557 shares traded—about 21% below average volume.
• Analysts remain cautious, with a MarketBeat consensus rating of "Reduce" and an average price target of $37 (Deutsche Bank recently raised its target to $37 while Weiss Ratings maintained a "sell").
• Telesat beat EPS expectations (‑$0.97 vs. ‑$1.05) but missed revenue estimates ($68.5M vs. $91.95M), and its balance-sheet metrics (current ratio 0.25, negative net margin) highlight ongoing financial challenges as it develops the Lightspeed LEO constellation.

Shares of Telesat Corporation (NASDAQ:TSAT - Get Free Report) were up 10.1% during mid-day trading on Thursday . The stock traded as high as $51.32 and last traded at $51.7170. Approximately 142,557 shares changed hands during trading, a decline of 21% from the average daily volume of 180,035 shares. The stock had previously closed at $46.99.

Analysts Set New Price Targets

TSAT has been the topic of several research reports. Weiss Ratings reissued a "sell (d+)" rating on shares of Telesat in a report on Wednesday, January 21st. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Telesat from $19.00 to $37.00 and gave the company a "hold" rating in a research note on Thursday, March 19th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $37.00.

Telesat Price Performance

The company has a debt-to-equity ratio of 0.66, a current ratio of 0.25 and a quick ratio of 0.25. The stock has a market capitalization of $727.31 million, a PE ratio of -6.81 and a beta of 1.89. The company has a 50-day moving average of $35.09 and a two-hundred day moving average of $31.42.

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

Hedge Funds Weigh In On Telesat

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Acadian Asset Management LLC raised its holdings in shares of 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 buying an additional 2,473 shares during the period. Jump Financial LLC acquired a new stake in Telesat during the 2nd quarter valued at $449,000. Bank of America Corp DE increased its stake in Telesat by 264.3% during the 2nd quarter. Bank of America Corp DE now owns 56,401 shares of the company's stock worth $1,378,000 after buying an additional 40,919 shares during the period. TD Waterhouse Canada Inc. lifted its holdings in Telesat by 59.8% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 15,981 shares of the company's stock worth $426,000 after buying an additional 5,981 shares in the last quarter. Finally, Penserra Capital Management LLC boosted its position in Telesat by 4.5% in the 3rd quarter. Penserra Capital Management LLC now owns 29,995 shares of the company's stock valued at $794,000 after buying an additional 1,280 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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