Telesat (NASDAQ:TSAT) Shares Gap Down – Should You Sell?

Telesat Corporation (NASDAQ:TSAT) gapped down prior to trading on Tuesday. The stock had previously closed at $40.09, but opened at $37.94. Telesat shares last traded at $38.1730, with a volume of 2,418 shares trading hands.

Analyst Upgrades and Downgrades

Several research analysts recently commented on TSAT shares. Zacks Research raised Telesat from a “strong sell” rating to a “hold” rating in a research report on Monday, October 19th. Stifel Nicolaus began coverage on shares of Telesat in a report on Thursday, July 16th. They issued a “buy” rating on the stock. Desjardins assumed coverage on shares of Telesat in a research note on Wednesday. They issued a “buy” rating for the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Telesat in a report on Monday, September 14th. Finally, Royal Bank Of Canada assumed coverage on shares of Telesat in a report on Thursday, August 27th. They set a “moderate buy” rating for the company. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Telesat currently has an average rating of “Hold” and a consensus price target of $33.50.

Telesat Stock Performance

The company has a market capitalization of $566.03 million, a P/E ratio of -2.02 and a beta of 2.12. The firm has a 50 day moving average price of $45.39 and a two-hundred day moving average price of $42.74. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.26 and a current ratio of 0.26.

Telesat (NASDAQ:TSAT) last issued its earnings results on Thursday, August 13th. The company reported ($7.85) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.71) by ($7.14). The company had revenue of $57.30 million during the quarter, compared to analyst estimates of $56.11 million. Telesat had a negative return on equity of 14.92% and a negative net margin of 112.44%. On average, research analysts expect that Telesat Corporation will post -13.11 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in TSAT. TD Waterhouse Canada Inc. lifted its holdings in Telesat by 18.0% during the 3rd 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. State of Alaska Department of Revenue acquired a new position in Telesat in the third quarter valued at about $34,000. Engineers Gate Manager LP bought a new stake in Telesat during the second quarter worth about $591,000. Allied Private Wealth LLC bought a new stake in Telesat during the second quarter worth about $51,000. Finally, Militia Capital Management LLC bought a new stake in Telesat during the first quarter worth about $560,000.

Telesat Company Profile

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.