Telesat (NASDAQ:TSAT) Shares Down 10.5% – Here’s What Happened

Telesat Corporation (NASDAQ:TSAT)’s share price fell 10.5% during trading on Friday . The stock traded as low as $49.58 and last traded at $49.1950. 135,608 shares traded hands during trading, a decline of 32% from the average session volume of 198,694 shares. The stock had previously closed at $54.99.

Analysts Set New Price Targets

Several research firms recently commented on TSAT. Zacks Research lowered Telesat from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 18th. Wall Street Zen lowered Telesat from a “sell” rating to a “strong sell” rating in a research report on Saturday, April 25th. New Street Research initiated coverage on Telesat in a research report on Wednesday, May 13th. They issued a “sell” rating and a $30.00 target price on the stock. Finally, Deutsche Bank Aktiengesellschaft upped their target price on Telesat from $19.00 to $37.00 and gave the company a “hold” rating in a research report on Thursday, March 19th. Two analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $33.50.

Telesat Stock Performance

The stock has a 50-day simple moving average of $48.14 and a 200-day simple moving average of $36.62. The company has a market capitalization of $683.49 million, a price-to-earnings ratio of -5.10 and a beta of 2.01. The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 0.77.

Telesat (NASDAQ:TSAT) last announced its earnings results on Tuesday, May 5th. 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 net margin of 47.57% and a negative return on equity of 4.02%. The business had revenue of $62.59 million during the quarter, compared to analyst estimates of $62.03 million. On average, analysts anticipate that Telesat Corporation will post -3.73 earnings per share for the current year.

Institutional Investors Weigh In On Telesat

Institutional investors have recently made changes to their positions in the company. Royal Bank of Canada increased its holdings in shares of Telesat by 32.2% in the 4th quarter. Royal Bank of Canada now owns 2,922 shares of the company’s stock valued at $85,000 after acquiring an additional 712 shares during the last quarter. BNP Paribas Financial Markets increased its holdings in shares of Telesat by 1,335.3% in the 3rd quarter. BNP Paribas Financial Markets now owns 3,818 shares of the company’s stock valued at $101,000 after acquiring an additional 3,552 shares during the last quarter. Acadian Asset Management LLC increased its position in Telesat by 63.3% in the first quarter. Acadian Asset Management LLC now owns 6,381 shares of the company’s stock worth $119,000 after buying an additional 2,473 shares during the period. Virtu Financial LLC acquired a new stake in Telesat in the fourth quarter worth $211,000. Finally, Quarry LP acquired a new stake in Telesat in the third quarter worth $212,000.

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.