Telesat (NASDAQ:TSAT) Stock Price Down 5.5% - What's Next?

Key Points

• Telesat shares fell 5.5% in midday trading, with volume well below average, signaling a sharp move lower after the stock previously closed at $45.08.
• Analysts remain cautious: several firms have issued Hold or Sell ratings, and MarketBeat data shows an average rating of “Reduce” with a price target of $33.50.
• The company’s latest earnings were weak, as Telesat reported a larger-than-expected loss of $2.21 per share, though revenue came in roughly in line with estimates.

Shares of Telesat Corporation (NASDAQ:TSAT - Get Free Report) fell 5.5% during mid-day trading on Thursday . The company traded as low as $42.94 and last traded at $42.6210. Approximately 38,518 shares changed hands during trading, a decline of 82% from the average session volume of 215,538 shares. The stock had previously closed at $45.08.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. New Street Research started coverage on Telesat in a research note on Wednesday, May 13th. They set a "sell" rating and a $30.00 target price on the stock. Zacks Research cut Telesat from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 18th. Weiss Ratings restated a "sell (d-)" rating on shares of Telesat in a report on Thursday, June 18th. Wall Street Zen lowered shares of Telesat from a "sell" rating to a "strong sell" rating in a research report on Saturday, April 25th. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on Telesat from $19.00 to $37.00 and gave the stock a "hold" rating in a report on Thursday, March 19th. Two investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $33.50.

Telesat Trading Down 5.4%

The company's fifty day moving average price is $48.92 and its two-hundred day moving average price is $39.68. 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 company has a market cap of $632.97 million, a price-to-earnings ratio of -4.72 and a beta of 2.03.

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. PenderFund Capital Management Ltd. increased its position in shares of Telesat by 307.3% during the third quarter. PenderFund Capital Management Ltd. now owns 409,753 shares of the company's stock worth $10,512,000 after acquiring an additional 309,153 shares in the last quarter. Senvest Management LLC increased its holdings in shares of Telesat by 261.5% during the 4th quarter. Senvest Management LLC now owns 134,668 shares of the company's stock worth $3,919,000 after acquiring an additional 97,411 shares during the last quarter. Millennium Management LLC raised its position in shares of Telesat by 245.4% in the fourth quarter. Millennium Management LLC now owns 128,472 shares of the company's stock valued at $3,739,000 after purchasing an additional 91,272 shares during the period. Polar Asset Management Partners Inc. lifted its position in Telesat by 83.0% during the third quarter. Polar Asset Management Partners Inc. now owns 105,225 shares of the company's stock worth $2,779,000 after acquiring an additional 47,725 shares during the last quarter. Finally, Gamco Investors INC. ET AL lifted its holdings in Telesat by 2.5% during the 4th quarter. Gamco Investors INC. ET AL now owns 1,831,693 shares of the company's stock worth $53,302,000 after purchasing an additional 44,785 shares during the last quarter.

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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