Telesat (NASDAQ:TSAT) Stock Falls 7.4% – Should You Sell?

Telesat Corporation (NASDAQ:TSAT) shares fell 7.4% on Thursday. The stock traded as low as $43.70 and last traded at $43.2910. Approximately 35,951 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 209,013 shares. The stock had previously closed at $46.74.

Analysts Set New Price Targets

TSAT has been the topic of a number of recent research reports. Royal Bank Of Canada began coverage on shares of Telesat in a research note on Thursday, August 27th. They set a “moderate buy” rating on the stock. Stifel Nicolaus initiated coverage on Telesat in a report on Thursday, July 16th. They set a “buy” rating for the company. Zacks Research cut Telesat from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 19th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Telesat in a report on Monday, September 14th. Finally, Scotiabank began coverage on Telesat in a research report on Monday, July 13th. They issued a “hold” rating for the company. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Telesat currently has a consensus rating of “Reduce” and an average price target of $33.50.

Telesat Stock Up 2.9%

The company’s fifty day simple moving average is $47.94 and its 200-day simple moving average is $46.33. The firm has a market capitalization of $699.47 million, a PE ratio of -2.57 and a beta of 2.11. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.17 and a quick ratio of 0.17.

Telesat (NASDAQ:TSAT) last issued its quarterly earnings data on Thursday, August 13th. The company reported ($7.85) 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 business had revenue of $57.30 million for the quarter, compared to analysts’ expectations of $56.11 million. On average, analysts forecast that Telesat Corporation will post -11.93 EPS for the current year.

Institutional Investors Weigh In On Telesat

A number of large investors have recently modified their holdings of TSAT. Allied Private Wealth LLC acquired a new position in shares of Telesat during the second quarter valued at about $51,000. Royal Bank of Canada grew its position in Telesat by 100.2% during the 1st quarter. Royal Bank of Canada now owns 5,850 shares of the company’s stock worth $212,000 after purchasing an additional 2,928 shares during the last quarter. Militia Capital Management LLC purchased a new stake in Telesat during the 1st quarter worth approximately $560,000. Engineers Gate Manager LP acquired a new position in Telesat during the 2nd quarter valued at approximately $591,000. Finally, Van Berkom & Associates Inc. purchased a new position in shares of Telesat in the first quarter worth $991,000.

Telesat Company Profile

Telesat is a Canadian satellite operator that provides communications services to customers worldwide. Founded in 1969 and headquartered in Ottawa, Ontario, the company operates a fleet of geostationary satellites and related ground infrastructure designed to support broadband connectivity, broadcasting, enterprise communications, mobility and government applications.

Telesat serves telecommunications companies, broadcasters, content providers, governments and other organizations across North America and international markets.