Air Canada (TSE:AC) Shares Pass Above 50-Day Moving Average - Here's What Happened

Key Points

• Air Canada shares crossed above their 50-day moving average (50‑day MA C$19.22), trading as high as C$19.60 and last at C$19.58 on volume of 3,222,144 shares, with the stock up about 3.9%.
• Research houses give a consensus rating of "Moderate Buy" with an average price target of C$24.42 (8 Buys, 4 Holds, 1 Sell), and several banks recently raised their targets and ratings.
• Latest reported quarter: EPS C$0.75 and revenue C$5.77 billion; the company has a market cap of C$5.8 billion, a negative P/E (‑28.38) and a high debt‑to‑equity ratio (~400%).

Air Canada (TSE:AC - Get Free Report) shares crossed above its 50-day moving average during trading on Monday . The stock has a 50-day moving average of C$19.22 and traded as high as C$19.60. Air Canada shares last traded at C$19.58, with a volume of 3,222,144 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on AC shares. UBS Group raised shares of Air Canada to a "hold" rating in a report on Tuesday, November 18th. Scotiabank raised their target price on Air Canada from C$25.00 to C$26.50 and gave the company an "outperform" rating in a research note on Wednesday, January 21st. National Bankshares boosted their price target on Air Canada from C$23.00 to C$24.00 and gave the stock a "sector perform" rating in a research note on Wednesday, January 14th. Royal Bank Of Canada set a C$25.00 price target on Air Canada and gave the company an "outperform" rating in a report on Tuesday, November 25th. Finally, CIBC lifted their price objective on Air Canada from C$23.00 to C$24.00 in a report on Wednesday, January 21st. Eight research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Air Canada currently has a consensus rating of "Moderate Buy" and an average price target of C$24.42.

Air Canada Stock Up 3.9%

The firm's 50-day moving average price is C$19.22 and its 200 day moving average price is C$19.04. The firm has a market cap of C$5.80 billion, a P/E ratio of -28.38, a price-to-earnings-growth ratio of 0.02 and a beta of 1.75. The company has a quick ratio of 1.06, a current ratio of 0.92 and a debt-to-equity ratio of 400.00.

Air Canada (TSE:AC - Get Free Report) last announced its quarterly earnings results on Tuesday, November 4th. The company reported C$0.75 earnings per share (EPS) for the quarter. The company had revenue of C$5.77 billion during the quarter. Air Canada had a return on equity of 177.01% and a net margin of 11.57%. As a group, research analysts expect that Air Canada will post 2.5789474 earnings per share for the current year.

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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