Telesat (NASDAQ:TSAT) Shares Down 7.3% on Analyst Downgrade

Shares of Telesat Corporation (NASDAQ:TSAT) fell 7.3% on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $48.11 and last traded at $48.5010. 92,534 shares traded hands during mid-day trading, a decline of 51% from the average session volume of 190,759 shares. The stock had previously closed at $52.31.

TSAT has been the subject of a number of other research reports. New Street Research began coverage on shares of Telesat in a report on Wednesday, May 13th. They issued a “sell” rating and a $30.00 price objective for the company. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Telesat from $19.00 to $37.00 and gave the company a “hold” rating in a report on Thursday, March 19th. Weiss Ratings restated a “sell (d+)” rating on shares of Telesat in a report on Wednesday, January 21st. Finally, Wall Street Zen cut shares of Telesat from a “sell” rating to a “strong sell” rating in a report on Saturday, April 25th. Two investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Telesat presently has an average rating of “Reduce” and a consensus price target of $33.50.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Royal Bank of Canada boosted its holdings in shares of Telesat by 32.2% in the 4th quarter. Royal Bank of Canada now owns 2,922 shares of the company’s stock valued at $85,000 after buying an additional 712 shares in the last quarter. BNP Paribas Financial Markets boosted its holdings in shares of Telesat by 1,335.3% in the 3rd quarter. BNP Paribas Financial Markets now owns 3,818 shares of the company’s stock valued at $101,000 after buying an additional 3,552 shares in the last quarter. Acadian Asset Management LLC boosted its holdings in shares of Telesat by 63.3% in the 1st quarter. Acadian Asset Management LLC now owns 6,381 shares of the company’s stock valued at $119,000 after buying an additional 2,473 shares in the last quarter. Virtu Financial LLC acquired a new position in shares of Telesat in the 4th quarter valued at $211,000. Finally, Quarry LP acquired a new position in shares of Telesat in the 3rd quarter valued at $212,000.

Telesat Stock Performance

The firm’s fifty day moving average price is $44.62 and its 200-day moving average price is $34.56. The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 0.77. The firm has a market cap of $774.05 million, a price-to-earnings ratio of -5.78 and a beta of 2.02.

Telesat (NASDAQ:TSAT) last released its quarterly earnings results on Tuesday, May 5th. The company reported ($2.21) EPS for the quarter, missing the consensus estimate of ($0.67) by ($1.54). Telesat had a negative net margin of 47.57% and a negative return on equity of 4.02%. The business had revenue of $62.59 million during the quarter, compared to analysts’ expectations of $62.03 million. Analysts expect that Telesat Corporation will post -3.73 earnings per share for the current year.

About Telesat

Telesat is a leading global satellite operator that designs, builds and delivers high-performance satellite communications solutions across multiple markets. The company operates a fleet of geostationary satellites to provide video distribution, data networking and managed broadband services to media companies, network operators, governments and enterprise customers. Telesat’s infrastructure supports television distribution, cellular backhaul, rural broadband and corporate network applications.

In addition to its geostationary offerings, Telesat is developing a low Earth orbit (LEO) satellite constellation known as Lightspeed.