Telesat (NASDAQ:TSAT) Shares Down 9.1% – Here’s What Happened

Telesat Corporation (NASDAQ:TSAT)’s share price dropped 9.1% on Thursday. The stock traded as low as $42.00 and last traded at $41.3950. 77,028 shares traded hands during mid-day trading, a decline of 63% from the average session volume of 209,300 shares. The stock had previously closed at $45.55.

Key Telesat News

Here are the key news stories impacting Telesat this week:

• Positive Sentiment: Quarterly results exceeded expectations. Telesat reported earnings of C$1.00 per share, compared with consensus estimates for a loss of roughly C$0.69–C$0.72 per share. Revenue was approximately C$80.6 million, above FactSet’s C$77.1 million forecast, while reported U.S.-dollar revenue was $56.63 million versus a $54.13 million estimate. Telesat Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Analyst support provided a counterpoint. ATB Cormark Capital Markets initiated or reiterated a “Buy” view on TSAT, potentially signaling confidence in Telesat’s long-term satellite-network opportunity and business prospects. Telesat Gets a Buy from ATB Cormark Capital Markets
• Neutral Sentiment: Management’s earnings call may be more important than the headline beat. Investors are focused on operating execution, satellite-network development and the company’s financing plans, since the unusually large earnings beat may not fully reflect recurring operating performance. Telesat Q3 2026 Earnings Call Transcript
• Negative Sentiment: Underlying profitability remains weak. Reports said Telesat’s third-quarter net loss widened, despite the EPS beat. The company continues to show a deeply negative net margin, increasing concern that the earnings result may have been affected by nonrecurring items rather than stronger core operations. Telesat Q3 Net Loss Widens
• Negative Sentiment: Debt repayment and liquidity are the central risks. Telesat is evaluating alternatives ahead of a December deadline to repay debt. With a very low current ratio and substantial financing needs, uncertainty over refinancing, asset sales or other funding measures likely outweighed the quarterly revenue and EPS beat. Telesat Evaluates Alternatives as Debt Deadline Looms

Analyst Upgrades and Downgrades

Several research analysts have weighed in on TSAT shares. Scotiabank started coverage on Telesat in a research report on Monday, July 13th. They issued a “hold” rating on the stock. Wall Street Zen upgraded Telesat from a “strong sell” rating to a “sell” rating in a report on Saturday. Royal Bank Of Canada began coverage on Telesat in a research note on Thursday, August 27th. They issued a “moderate buy” rating for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Telesat in a research note on Monday, September 14th. Finally, Canadian Imperial Bank of Commerce initiated coverage on shares of Telesat in a research note on Sunday, October 25th. They set a “sector outperform” rating on the stock. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $33.50.

Telesat Price Performance

The company has a 50 day simple moving average of $45.62 and a 200 day simple moving average of $42.65. 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 stock has a market cap of $610.13 million, a P/E ratio of -2.18 and a beta of 2.11.

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). Telesat had a negative return on equity of 13.68% and a negative net margin of 112.44%. The firm had revenue of $57.30 million for the quarter, compared to analyst estimates of $56.11 million. Sell-side analysts forecast that Telesat Corporation will post -11.93 earnings per share for the current fiscal year.

Institutional Trading of Telesat

Hedge funds and other institutional investors have recently modified their holdings of the stock. TD Waterhouse Canada Inc. boosted its holdings in Telesat by 18.0% in the third quarter. TD Waterhouse Canada Inc. now owns 63,361 shares of the company’s stock valued at $2,938,000 after acquiring an additional 9,653 shares during the last quarter. State of Alaska Department of Revenue purchased a new stake in shares of Telesat during the third quarter valued at approximately $34,000. Engineers Gate Manager LP purchased a new position in Telesat in the second quarter valued at approximately $591,000. Allied Private Wealth LLC purchased a new stake in shares of Telesat during the 2nd quarter valued at approximately $51,000. Finally, Militia Capital Management LLC bought a new position in Telesat in the 1st quarter worth about $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.