Air Canada (TSE:AC) Stock Price Down 10.4% - What's Next?

Key Points

• Air Canada's stock price fell by 10.4% to C$19.74, with trading volume dropping to about 72% of its average daily volume.
• Brokerages have revised price targets for Air Canada, with CIBC lowering it from C$24.00 to C$21.00 and Jefferies cutting theirs from C$18.00 to C$12.00.
• The company has a current consensus rating of "Moderate Buy" and a price target of C$24.97 based on various analysts' evaluations.

Air Canada (TSE:AC - Get Free Report) was down 10.4% on Tuesday . The stock traded as low as C$19.31 and last traded at C$19.74. Approximately 938,331 shares traded hands during trading, a decline of 72% from the average daily volume of 3,403,284 shares. The stock had previously closed at C$22.04.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Jefferies Financial Group downgraded shares of Air Canada from a "hold" rating to an "underperform" rating and reduced their price objective for the stock from C$18.00 to C$12.00 in a research report on Tuesday, April 1st. Raymond James Financial increased their target price on shares of Air Canada from C$24.00 to C$27.00 and gave the company a "moderate buy" rating in a research report on Tuesday, July 22nd. CIBC reduced their target price on shares of Air Canada from C$24.00 to C$21.00 in a research report on Thursday, April 10th. Stifel Nicolaus increased their target price on shares of Air Canada from C$22.00 to C$23.00 in a research report on Monday, May 12th. Finally, Scotiabank increased their target price on shares of Air Canada from C$24.00 to C$27.00 and gave the company an "outperform" rating in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, nine have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Air Canada currently has an average rating of "Moderate Buy" and an average target price of C$25.50.

Air Canada Price Performance

The company has a quick ratio of 1.06, a current ratio of 0.92 and a debt-to-equity ratio of 400.00. The firm has a market capitalization of C$7.02 billion, a PE ratio of 2.77, a PEG ratio of 0.02 and a beta of 2.39. The firm's fifty day simple moving average is C$20.25 and its 200-day simple moving average is C$17.81.

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.