Air Canada (TSE:AC) Shares Down 14.3% - Should You Sell?

Key Points

• Air Canada shares dropped 14.3%, trading as low as C$18.80, marking a significant decline from its previous closure at C$22.04.
• Despite the downturn, several analysts upgraded Air Canada's rating, with price targets ranging from C$21.00 to C$27.00 and a consensus rating of "Moderate Buy."
• The airline holds a high debt-to-equity ratio of 400.00, alongside a market capitalization of C$6.90 billion and a price-to-earnings ratio of 2.72.

Shares of Air Canada (TSE:AC - Get Free Report) dropped 14.3% during trading on Tuesday . The company traded as low as C$18.80 and last traded at C$18.88. Approximately 7,494,339 shares traded hands during trading, an increase of 117% from the average daily volume of 3,447,739 shares. The stock had previously closed at C$22.04.

Analysts Set New Price Targets

AC has been the subject of a number of research reports. National Bankshares boosted their target price on shares of Air Canada from C$24.00 to C$26.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 16th. ATB Capital boosted their target price on shares of Air Canada from C$31.00 to C$32.00 and gave the stock an "outperform" rating in a research note on Wednesday. BMO Capital Markets cut their target price on shares of Air Canada from C$31.00 to C$29.00 and set an "outperform" rating for the company in a research note on Thursday, April 3rd. Canaccord Genuity Group boosted their target price on shares of Air Canada from C$27.00 to C$28.00 and gave the stock a "buy" rating in a research note on Wednesday. Finally, Scotiabank boosted their target price on shares of Air Canada from C$24.00 to C$27.00 and gave the stock an "outperform" rating in a research note on Wednesday. One research analyst has rated the stock with a sell rating, one has assigned a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Air Canada currently has an average rating of "Moderate Buy" and an average price target of C$25.63.

Air Canada Stock Performance

The company has a market cap of C$6.83 billion, a PE ratio of 2.70, 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. The firm's 50 day moving average is C$20.26 and its 200-day moving average is C$17.79.

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.