Telesat (NASDAQ:TSAT) Shares Gap Up – Should You Buy?

Telesat Corporation (NASDAQ:TSAT) shares gapped up prior to trading on Tuesday . The stock had previously closed at $48.83, but opened at $52.05. Telesat shares last traded at $50.7270, with a volume of 5,653 shares changing hands.

Analysts Set New Price Targets

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

Telesat Price Performance

The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.90. The business’s fifty day moving average is $45.34 and its 200 day moving average is $45.30. The firm has a market capitalization of $752.76 million, a P/E ratio of -2.84 and a beta of 2.06.

Telesat (NASDAQ:TSAT) last issued its earnings results on Thursday, August 13th. The company reported ($7.85) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.71) by ($7.14). The business had revenue of $57.30 million for the quarter, compared to the consensus estimate of $56.11 million. Telesat had a negative return on equity of 15.53% and a negative net margin of 102.62%. As a group, analysts forecast that Telesat Corporation will post -11.93 EPS for the current year.

Institutional Investors Weigh In On Telesat

Several hedge funds have recently modified their holdings of TSAT. Allied Private Wealth LLC purchased a new stake in Telesat during the second quarter valued at about $51,000. Royal Bank of Canada raised its holdings in shares of Telesat by 100.2% during the first quarter. Royal Bank of Canada now owns 5,850 shares of the company’s stock valued at $212,000 after acquiring an additional 2,928 shares during the period. Engineers Gate Manager LP purchased a new stake in shares of Telesat in the 2nd quarter valued at approximately $591,000. Militia Capital Management LLC purchased a new stake in shares of Telesat in the 1st quarter valued at approximately $560,000. Finally, Van Berkom & Associates Inc. acquired a new position in Telesat in the 1st quarter worth approximately $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, the company operates geostationary satellites under the Telstar brand and delivers connectivity for telecommunications companies, broadcasters, enterprises, governments and other institutional users.

The company’s services include satellite capacity, broadband connectivity, enterprise networking, video distribution and communications solutions for government and maritime customers.