Telesat (NASDAQ:TSAT) Shares Gap Down – Time to Sell?

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.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on TSAT. Canadian Imperial Bank of Commerce assumed coverage on Telesat in a research report on Sunday, October 25th. They issued a “sector outperform” rating for the company. Wall Street Zen upgraded Telesat from a “strong sell” rating to a “sell” rating in a research note on Saturday. Royal Bank Of Canada started coverage on Telesat in a research report on Thursday, August 27th. They set a “moderate buy” rating on the stock. Zacks Research upgraded Telesat from a “strong sell” rating to a “hold” rating in a research note on Monday, October 19th. Finally, Stifel Nicolaus assumed coverage on Telesat in a research note on Thursday, July 16th. They issued a “buy” rating for the company. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Telesat has a consensus rating of “Hold” and an average target price of $33.50.

Telesat Price Performance

The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.17 and a current ratio of 0.17. The stock’s 50-day moving average is $45.48 and its two-hundred day moving average is $42.67. The stock has a market cap of $612.02 million, a PE ratio of -2.17 and a beta of 2.11.

Telesat (NASDAQ:TSAT) last announced its quarterly earnings data on Thursday, August 13th. The company reported ($7.85) earnings per share (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 net margin of 102.62% and a negative return on equity of 15.53%. On average, equities analysts predict that Telesat Corporation will post -11.93 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Walleye Capital LLC raised its position in Telesat by 210.1% during the 1st quarter. Walleye Capital LLC now owns 57,017 shares of the company’s stock worth $2,064,000 after buying an additional 38,630 shares during the last quarter. TD Waterhouse Canada Inc. boosted its holdings in shares of Telesat by 127.3% in the second quarter. TD Waterhouse Canada Inc. now owns 53,708 shares of the company’s stock valued at $2,516,000 after acquiring an additional 30,076 shares in the last quarter. Van Berkom & Associates Inc. purchased a new stake in shares of Telesat in the first quarter valued at about $991,000. Militia Capital Management LLC purchased a new stake in shares of Telesat in the first quarter valued at about $560,000. Finally, Bank of America Corp DE increased its stake in shares of Telesat by 72.5% during the first quarter. Bank of America Corp DE now owns 34,794 shares of the company’s stock worth $1,260,000 after acquiring an additional 14,626 shares during the period.

Telesat Company Profile

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.