Air Canada (TSE:AC) Shares Down 13.9% - Here's Why

Key Points

• Air Canada shares fell by 13.9%, closing at C$18.98 after hitting a low of C$18.75, significantly increasing trading volume to 8.86 million shares.
• Several brokerages have given mixed ratings on Air Canada, with Royal Bank of Canada upgrading its rating from "sector perform" to "outperform" and raising the price target from C$16.00 to C$25.00.
• Air Canada currently has a market cap of C$6.90 billion and a debt-to-equity ratio of 400.00, indicating a high level of debt relative to equity.

Air Canada (TSE:AC - Get Free Report) shares fell 13.9% on Tuesday . The company traded as low as C$18.75 and last traded at C$18.98. 8,859,643 shares traded hands during trading, an increase of 156% from the average session volume of 3,458,226 shares. The stock had previously closed at C$22.04.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on AC. Stifel Nicolaus lifted their price objective on shares of Air Canada from C$22.00 to C$23.00 in a report on Monday, May 12th. Royal Bank Of Canada upgraded shares of Air Canada from a "sector perform" rating to an "outperform" rating and lifted their price target for the stock from C$16.00 to C$25.00 in a research note on Monday, May 12th. National Bankshares boosted their price objective on shares of Air Canada from C$24.00 to C$26.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 16th. Jefferies Financial Group cut shares of Air Canada from a "hold" rating to an "underperform" rating and cut their target price for the company from C$18.00 to C$12.00 in a report on Tuesday, April 1st. Finally, Citigroup set a C$25.00 price objective on shares of Air Canada and gave the company a "buy" rating in a research note on Monday, June 30th. One research analyst has rated the stock with a sell rating, one has issued a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, Air Canada presently has a consensus rating of "Moderate Buy" and an average target price of C$24.97.

Air Canada Price Performance

The stock has a 50 day moving average of C$20.21 and a two-hundred day moving average of C$17.78. The stock has a market cap of C$6.90 billion, a PE ratio of 2.72, a PEG ratio of 0.02 and a beta of 2.39. The company has a debt-to-equity ratio of 400.00, a quick ratio of 1.06 and a current ratio of 0.92.

Air Canada Company Profile

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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