Telesat (NASDAQ:TSAT) Shares Gap Down – Here’s Why

Shares of Telesat Corporation (NASDAQ:TSAT) gapped down before the market opened 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 traded.

Wall Street Analysts Forecast Growth

TSAT has been the topic of a number of analyst reports. Wall Street Zen upgraded Telesat from a “strong sell” rating to a “sell” rating in a research note on Saturday. Scotiabank started coverage on Telesat in a report on Monday, July 13th. They set a “hold” rating on the stock. Zacks Research upgraded Telesat from a “strong sell” rating to a “hold” rating in a research report on Monday, October 19th. Weiss Ratings reissued a “sell (d-)” rating on shares of Telesat in a report on Monday, September 14th. Finally, Canadian Imperial Bank of Commerce began coverage on shares of Telesat in a research report on Sunday, October 25th. They set a “sector outperform” rating on the stock. Three investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $33.50.

Telesat Trading Up 7.7%

The stock has a market cap of $612.02 million, a P/E ratio of -2.17 and a beta of 2.11. The stock’s 50-day moving average is $45.48 and its two-hundred day moving average is $42.67. 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 announced its quarterly earnings results on Thursday, August 13th. The company reported ($7.85) EPS for the quarter, missing the consensus estimate of ($0.71) by ($7.14). The company had revenue of $57.30 million during the quarter, compared to analysts’ expectations of $56.11 million. Telesat had a negative return on equity of 15.53% and a negative net margin of 102.62%. Equities research analysts anticipate that Telesat Corporation will post -11.93 EPS for the current year.

Institutional Investors Weigh In On Telesat

Several large investors have recently made changes to their positions in TSAT. TD Waterhouse Canada Inc. lifted its position in shares of Telesat by 18.0% in the third quarter. TD Waterhouse Canada Inc. now owns 63,361 shares of the company’s stock worth $2,938,000 after buying an additional 9,653 shares in the last quarter. State of Alaska Department of Revenue purchased a new position in Telesat during the 3rd quarter valued at approximately $34,000. Engineers Gate Manager LP purchased a new position in Telesat during the 2nd quarter valued at approximately $591,000. Allied Private Wealth LLC bought a new stake in Telesat in the 2nd quarter worth approximately $51,000. Finally, Militia Capital Management LLC bought a new stake in Telesat in the 1st quarter worth approximately $560,000.

About Telesat

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.