Telesat (NASDAQ:TSAT) Trading Down 7.3% – Here’s Why

Telesat Corporation (NASDAQ:TSAT) shares dropped 7.3% on Tuesday . The stock traded as low as $48.11 and last traded at $48.5010. Approximately 92,534 shares traded hands during trading, a decline of 51% from the average daily volume of 190,759 shares. The stock had previously closed at $52.31.

Analyst Ratings Changes

TSAT has been the topic of several recent research reports. Zacks Research raised shares of Telesat from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 4th. New Street Research initiated coverage on shares of Telesat in a research note on Wednesday, May 13th. They set a “sell” rating and a $30.00 target price on the stock. Wall Street Zen downgraded shares of Telesat from a “sell” rating to a “strong sell” rating in a research note on Saturday, April 25th. Deutsche Bank Aktiengesellschaft upped their target price on shares of Telesat from $19.00 to $37.00 and gave the stock a “hold” rating in a research note on Thursday, March 19th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Telesat in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Telesat presently has a consensus rating of “Hold” and an average price target of $33.50.

Telesat Stock Down 3.6%

The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 0.77. The company has a market cap of $748.43 million, a price-to-earnings ratio of -5.59 and a beta of 2.02. The firm’s fifty day simple moving average is $43.87 and its 200 day simple moving average is $34.27.

Telesat (NASDAQ:TSAT) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($2.21) EPS for the quarter, missing the consensus estimate 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 firm had revenue of $62.59 million for the quarter, compared to analyst estimates of $62.03 million. Sell-side analysts predict that Telesat Corporation will post -3.73 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in TSAT. PenderFund Capital Management Ltd. grew its holdings in Telesat by 307.3% during the 3rd 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 grew its holdings in 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 in the last quarter. Millennium Management LLC grew its holdings in Telesat by 245.4% during the 4th quarter. Millennium Management LLC now owns 128,472 shares of the company’s stock worth $3,739,000 after acquiring an additional 91,272 shares in the last quarter. Vestcor Inc grew its holdings in Telesat by 40.0% during the 3rd quarter. Vestcor Inc now owns 175,000 shares of the company’s stock worth $4,638,000 after acquiring an additional 50,000 shares in the last quarter. Finally, Polar Asset Management Partners Inc. grew its holdings in Telesat by 83.0% during the 3rd 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 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.