TSAT.TO stock down 28.17% intraday after creditor lawsuit: what traders should watch
TSAT.TO stock slid sharply intraday after creditors filed litigation, sending the price to C$34.52 on the TSX. The share move shows a -28.17% drop and trading volume of 242,065 shares, well above the 50-day average. This intraday fall ties directly to creditor claims over a September 2025 equity distribution and adds legal uncertainty ahead of the next earnings report.
TSAT.TO stock: intraday drop and news flow
The main driver today is creditor litigation alleging improper equity transfers; Telesat says the claims are without merit. Market reaction pushed the intraday range to a day low C$34.19 and day high C$39.00.
Investors should read the filing coverage and the company statement. See coverage at Investing.com and the company release at Markets Insider.
Financials and valuation snapshot
Telesat (TSAT.TO) shows EPS -11.11 and a reported PE -3.42, reflecting negative earnings. Market capitalization is C$558,044,250 and shares outstanding are 14,685,375.
Key ratios: PB 0.83, current ratio 4.11, and debt to equity 4.96. Cash per share is C$32.61 and book value per share is C$151.92, underlining a complex balance-sheet with high leverage metrics alongside sizeable cash.
Technical and trading signals for intraday traders
Volume is elevated at 242,065 vs average 21,372, giving the move conviction. Relative Strength Index sits near 61.12, and MACD shows a positive histogram at 0.33, but ATR is 2.75, signalling higher intraday volatility.
Price sits below the 50-day average C$40.10 but near the 200-day average C$33.44, making the C$33.44 area an important near-term technical support.
Meyka AI rates TSAT.TO with a score out of 100
Meyka AI rates TSAT.TO with a score out of 100: 66.82 / 100 — Grade B (HOLD). This grade factors S&P 500 and sector comparisons, financial growth, key metrics, and analyst consensus.
Meyka AI’s forecast model projects a yearly target C$55.39, versus the current C$34.52, implying an upside of 60.49%. Forecasts are model-based projections and not guarantees.
Risks and near-term catalysts
Immediate risks include creditor litigation outcomes and potential bondholder remedies that could affect cash and equity flow. The company has confirmed it will defend the action; legal timelines may prolong uncertainty.
Upcoming corporate catalysts to monitor: the next earnings announcement on 2026-03-26, Lightspeed program updates, and any debt restructuring news. For the lawsuit details see Markets Insider and Investing.com source and source.
Trading takeaway for top losers intraday
For short-term traders, watch relative volume, the C$33.44 200-day average, and intraday VWAP levels. A sustained move below C$33.44 could open a retest of the year low C$20.55.
Longer-term investors should weigh the company’s cash per share C$32.61, high capex needs, and exposure to LEO deployment risk before altering base positions.
Final Thoughts
TSAT.TO stock shows a sharp intraday decline to C$34.52, driven by creditor litigation and elevated trading volume of 242,065 shares. Financials show EPS -11.11, PE -3.42, PB 0.83, and a debt to equity 4.96, underlining both asset strength and leverage risk. Meyka AI’s model projects a yearly target of C$55.39, an implied upside of 60.49% versus today’s price. That forecast offers a constructive medium-term view, but legal outcomes and Lightspeed execution are key catalysts and risks. Traders should treat today’s move as headline-driven volatility and monitor legal filings, the March 26, 2026 earnings date, and volume-confirmed price follow-through. Meyka AI provides this as AI-powered market analysis; forecasts are projections and not guarantees.
FAQs
Why did TSAT.TO stock fall so sharply today?
TSAT.TO stock dropped after certain creditors filed lawsuits over a September 2025 equity distribution. The legal challenge increased uncertainty and spurred heavy selling, driving intraday volume to 242,065 and a price fall to C$34.52.
What are the key financial risks for TSAT.TO stock?
Key risks include high leverage (debt to equity 4.96), negative EPS (-11.11), large capex needs for Lightspeed, and potential legal or restructuring costs. Cash per share C$32.61 provides some cushion.
What is Meyka AI’s forecast for TSAT.TO stock?
Meyka AI’s forecast model projects a yearly target of C$55.39, implying 60.49% upside from C$34.52. Forecasts are model-based projections and not guarantees.
How should traders approach TSAT.TO stock intraday?
Intraday traders should monitor relative volume, the 200-day average C$33.44 for support, and news flow. Use tight risk controls because ATR is 2.75 and volatility is elevated.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
