Telesat (NASDAQ:TSAT) Trading Down 10.5% – Should You Sell?

Shares of Telesat Corporation (NASDAQ:TSAT) dropped 10.5% during mid-day trading on Friday . The stock traded as low as $49.58 and last traded at $49.1950. Approximately 135,608 shares were traded during mid-day trading, a decline of 32% from the average daily volume of 198,694 shares. The stock had previously closed at $54.99.

Analysts Set New Price Targets

TSAT has been the topic of several research reports. Wall Street Zen cut Telesat from a “sell” rating to a “strong sell” rating in a report on Saturday, April 25th. New Street Research initiated coverage on Telesat in a report on Wednesday, May 13th. They issued a “sell” rating and a $30.00 target price on the stock. Zacks Research cut Telesat from a “strong-buy” rating to a “hold” rating in a report on Monday, May 18th. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on Telesat from $19.00 to $37.00 and gave the stock a “hold” rating in a report on Thursday, March 19th. Two analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $33.50.

Telesat Trading Down 19.0%

The company has a market cap of $661.27 million, a PE ratio of -4.94 and a beta of 2.01. The company has a debt-to-equity ratio of 0.77, a current ratio of 0.25 and a quick ratio of 0.25. The company has a 50-day moving average of $48.23 and a 200 day moving average of $36.68.

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). The company had revenue of $62.59 million during the quarter, compared to analysts’ expectations of $62.03 million. Telesat had a negative return on equity of 4.02% and a negative net margin of 47.57%. Analysts predict that Telesat Corporation will post -3.73 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in TSAT. Acadian Asset Management LLC grew its position in Telesat by 63.3% in the first quarter. Acadian Asset Management LLC now owns 6,381 shares of the company’s stock worth $119,000 after acquiring an additional 2,473 shares in the last quarter. Jump Financial LLC purchased a new position in shares of Telesat during the second quarter valued at approximately $449,000. Bank of America Corp DE boosted its position in shares of Telesat by 264.3% during the second quarter. Bank of America Corp DE now owns 56,401 shares of the company’s stock valued at $1,378,000 after buying an additional 40,919 shares during the period. Penserra Capital Management LLC boosted its position in shares of Telesat by 4.5% during the third quarter. Penserra Capital Management LLC now owns 29,995 shares of the company’s stock valued at $794,000 after buying an additional 1,280 shares during the period. Finally, JPMorgan Chase & Co. boosted its position in shares of Telesat by 189.5% during the third quarter. JPMorgan Chase & Co. now owns 15,932 shares of the company’s stock valued at $422,000 after buying an additional 10,428 shares during the period.

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.