Air Canada (TSE:AC) Shares Down 11.4% - Here's What Happened

Key Points

• Air Canada shares dropped 11.4%, hitting a low of C$19.31 on Tuesday, after closing at C$22.04 the previous day, with trading volume increasing by 31% compared to the average.
• Analyst opinions are mixed, with target prices ranging from C$12.00 to C$27.00 and a consensus rating of "Moderate Buy" at an average target of C$24.97.
• The airline has a market capitalization of C$6.83 billion, a high debt-to-equity ratio of 400.00, and significant share price volatility reflected by its beta of 2.39.

Air Canada (TSE:AC - Get Free Report) shares dropped 11.4% on Tuesday . The stock traded as low as C$19.31 and last traded at C$19.52. Approximately 4,485,133 shares were traded during trading, an increase of 31% from the average daily volume of 3,420,570 shares. The stock had previously closed at C$22.04.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the stock. Canaccord Genuity Group raised their target price on shares of Air Canada from C$24.00 to C$27.00 in a research report on Monday, May 12th. Scotiabank cut their price target on shares of Air Canada from C$25.00 to C$21.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 9th. Royal Bank Of Canada raised shares of Air Canada from a "sector perform" rating to an "outperform" rating and raised their target price for the company from C$16.00 to C$25.00 in a research note on Monday, May 12th. Stifel Nicolaus increased their target price on Air Canada from C$22.00 to C$23.00 in a research note on Monday, May 12th. Finally, Jefferies Financial Group lowered shares of Air Canada from a "hold" rating to an "underperform" rating and cut their price objective for the stock from C$18.00 to C$12.00 in a report on Tuesday, April 1st. One analyst has rated the stock with a sell rating, one has given a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of C$24.97.

Air Canada Stock Performance

The firm has a market capitalization of C$6.83 billion, a P/E ratio of 2.70, a P/E/G ratio of 0.02 and a beta of 2.39. The company has a debt-to-equity ratio of 400.00, a current ratio of 0.92 and a quick ratio of 1.06. The stock's 50 day moving average is C$20.21 and its two-hundred day moving average is C$17.78.

About Air Canada

Air Canada is Canada's largest airline, generally serving nearly 50 million passengers each year together with its regional partners. Air Canada is a sixth freedom airline, similar to Gulf carriers, which flies many U.S. nationals on long-haul trips with a layover in Canada. In 2019, the company generated CAD 19 billion in total revenue.

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