Telesat (NASDAQ:TSAT) Stock Price Down 5.6% - Here's Why

Key Points

• Telesat shares fell 5.6% to $45.00 on Monday, trading just 27,882 shares during mid-day — an 85% drop from average volume — signaling thin intraday trading pressure.
• Analysts have a consensus "Reduce" rating with an average price target of $37, reflecting mixed research (Deutsche Bank raised its PT to $37/hold while Weiss and Wall Street Zen issued sell/strong-sell calls).
• Telesat beat quarterly EPS estimates (‑$0.97 vs. ‑$1.05) but missed revenue ($68.5M vs. $91.95M) and remains unprofitable with negative margins and an expected full-year EPS of ‑2.55.

Telesat Corporation (NASDAQ:TSAT - Get Free Report) shares traded down 5.6% during trading on Monday . The company traded as low as $44.45 and last traded at $45.00. 27,882 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 186,365 shares. The stock had previously closed at $47.69.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Deutsche Bank Aktiengesellschaft boosted their price target on Telesat from $19.00 to $37.00 and gave the stock a "hold" rating in a research report on Thursday, March 19th. Weiss Ratings reissued a "sell (d+)" rating on shares of Telesat in a research report on Wednesday, January 21st. Finally, Wall Street Zen cut Telesat from a "sell" rating to a "strong sell" rating in a research report on Saturday. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $37.00.

Telesat Stock Down 3.3%

The company has a 50 day moving average price of $38.42 and a two-hundred day moving average price of $32.47. The stock has a market cap of $684.23 million, a PE ratio of -6.10 and a beta of 1.89. 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 released its quarterly earnings results on Tuesday, March 17th. The company reported ($0.97) earnings per share for the quarter, beating the consensus estimate of ($1.05) by $0.08. The firm 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%. Analysts expect that Telesat Corporation will post -2.55 EPS for the current year.

Hedge Funds Weigh In On Telesat

Institutional investors have recently bought and sold shares of the stock. Vestcor Inc raised its holdings in Telesat by 40.0% in the 3rd quarter. Vestcor Inc now owns 175,000 shares of the company's stock worth $4,638,000 after purchasing an additional 50,000 shares during the period. K.J. Harrison & Partners Inc raised its holdings in Telesat by 128.3% in the 3rd quarter. K.J. Harrison & Partners Inc now owns 58,000 shares of the company's stock worth $1,609,000 after purchasing an additional 32,600 shares during the period. Polar Asset Management Partners Inc. raised its holdings in Telesat by 83.0% in the 3rd quarter. Polar Asset Management Partners Inc. now owns 105,225 shares of the company's stock worth $2,779,000 after purchasing an additional 47,725 shares during the period. Penserra Capital Management LLC raised its holdings in Telesat by 4.5% in the 3rd quarter. Penserra Capital Management LLC now owns 29,995 shares of the company's stock worth $794,000 after purchasing an additional 1,280 shares during the period. Finally, TD Waterhouse Canada Inc. increased its stake 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.

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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