Telesat (NASDAQ:TSAT) Shares Gap Down Following Weak Earnings

Telesat Corporation (NASDAQ:TSAT)’s stock price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $48.62, but opened at $45.17. Telesat shares last traded at $50.27, with a volume of 15,816 shares changing hands.

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 1.10% and a negative net margin of 37.25%.

Analyst Ratings Changes

TSAT has been the topic of a number of research reports. Wall Street Zen lowered shares of Telesat from a “sell” rating to a “strong sell” rating in a research report 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 report on Thursday, March 19th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Telesat in a research report on Wednesday, January 21st. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Telesat currently has an average rating of “Reduce” and an average target price of $37.00.

Institutional Investors Weigh In On Telesat

A number of institutional investors and hedge funds have recently modified their holdings of the business. Royal Bank of Canada raised its stake in shares of Telesat by 32.2% during the fourth quarter. Royal Bank of Canada now owns 2,922 shares of the company’s stock worth $85,000 after buying an additional 712 shares during the last quarter. Penserra Capital Management LLC increased its stake in Telesat by 4.5% in the third quarter. Penserra Capital Management LLC now owns 29,995 shares of the company’s stock valued at $794,000 after purchasing an additional 1,280 shares in the last quarter. Acadian Asset Management LLC increased its stake in Telesat by 63.3% in the first quarter. Acadian Asset Management LLC now owns 6,381 shares of the company’s stock valued at $119,000 after purchasing an additional 2,473 shares in the last quarter. BNP Paribas Financial Markets increased its stake in Telesat by 1,335.3% in the third quarter. BNP Paribas Financial Markets now owns 3,818 shares of the company’s stock valued at $101,000 after purchasing an additional 3,552 shares in the last quarter. Finally, Federation des caisses Desjardins du Quebec increased its stake in Telesat by 19.4% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 24,668 shares of the company’s stock valued at $680,000 after purchasing an additional 4,000 shares in the last quarter.

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 cap of $729.98 million, a P/E ratio of -6.51 and a beta of 2.02. The company’s 50 day simple moving average is $39.87 and its 200 day simple moving average is $32.82.

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.