Telesat (NASDAQ:TSAT) Stock Price Down 5.9% – Here’s Why

Telesat Corporation (NASDAQ:TSAT) fell 5.9% during trading on Tuesday. The stock traded as low as $40.88 and last traded at $42.24. 25,092 shares were traded during trading, a decline of 88% from the average daily volume of 207,923 shares. The stock had previously closed at $44.88.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on TSAT shares. Royal Bank Of Canada initiated coverage on Telesat in a research report on Thursday, August 27th. They set a “moderate buy” rating on the stock. Zacks Research raised shares of Telesat from a “strong sell” rating to a “hold” rating in a research report on Monday. Stifel Nicolaus started coverage on shares of Telesat in a research note on Thursday, July 16th. They set a “buy” rating for the company. Scotiabank assumed coverage on shares of Telesat in a research note on Monday, July 13th. They set a “hold” rating for the company. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Telesat in a report on Monday, September 14th. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $33.50.

Telesat Trading Up 3.4%

The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.90. The firm has a 50 day moving average price of $46.29 and a 200 day moving average price of $46.76. The stock has a market capitalization of $642.70 million, a PE ratio of -2.36 and a beta of 2.11.

Telesat (NASDAQ:TSAT) last announced its earnings results on Thursday, August 13th. The company reported ($7.85) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.71) by ($7.14). Telesat had a negative net margin of 102.62% and a negative return on equity of 15.53%. The company had revenue of $57.30 million for the quarter, compared to analysts’ expectations of $56.11 million. Equities analysts expect that Telesat Corporation will post -11.93 EPS for the current fiscal year.

Hedge Funds Weigh In On Telesat

Hedge funds have recently bought and sold shares of the company. Senvest Management LLC grew its stake in shares of Telesat by 2.2% in the 1st quarter. Senvest Management LLC now owns 137,668 shares of the company’s stock worth $4,984,000 after acquiring an additional 3,000 shares in the last quarter. TD Waterhouse Canada Inc. raised its holdings in shares of Telesat by 18.0% in the third quarter. TD Waterhouse Canada Inc. now owns 63,361 shares of the company’s stock valued at $2,938,000 after purchasing an additional 9,653 shares during the last quarter. Walleye Capital LLC raised its holdings in shares of Telesat by 210.1% in the first quarter. Walleye Capital LLC now owns 57,017 shares of the company’s stock valued at $2,064,000 after purchasing an additional 38,630 shares during the last quarter. Bank of America Corp DE lifted its position in shares of Telesat by 72.5% during the first quarter. Bank of America Corp DE now owns 34,794 shares of the company’s stock valued at $1,260,000 after purchasing an additional 14,626 shares in the last quarter. Finally, Van Berkom & Associates Inc. bought a new position in shares of Telesat during the first quarter valued at about $991,000.

About Telesat

Telesat is a Canadian satellite communications operator that provides connectivity and related services to telecommunications companies, broadcasters, governments, enterprises and other organizations worldwide. The company operates a fleet of geostationary satellites and delivers satellite capacity for broadband communications, video distribution, enterprise networking, mobility and government applications.

In addition to its geostationary satellite services, Telesat is developing Telesat Lightspeed, a planned low Earth orbit satellite network designed to provide high-speed, low-latency broadband connectivity.