Air Canada (TSE:AC) Stock Price Passes Below 50-Day Moving Average - Here's Why

Key Points

• Air Canada shares fell below their 50-day moving average of C$18.99, trading as low as C$18.09 on Monday before settling at C$18.33.
• Brokerage firms have revised their price targets for Air Canada, with Royal Bank of Canada lowering it from C$27.00 to C$25.00, while Raymond James Financial raised theirs from C$24.00 to C$27.00.
• The stock has a debt-to-equity ratio of 400.00 and a market capitalization of C$5.43 billion, reflecting significant financial leverage.

Air Canada (TSE:AC - Get Free Report) shares passed below its 50-day moving average during trading on Monday . The stock has a 50-day moving average of C$18.99 and traded as low as C$18.09. Air Canada shares last traded at C$18.33, with a volume of 2,124,854 shares.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on AC. Royal Bank Of Canada decreased their price target on Air Canada from C$27.00 to C$25.00 and set an "outperform" rating for the company in a report on Wednesday, August 20th. TD Securities cut their price objective on shares of Air Canada from C$25.00 to C$22.00 in a research report on Friday, September 26th. Canaccord Genuity Group lowered their target price on shares of Air Canada from C$28.00 to C$25.00 and set a "buy" rating on the stock in a report on Thursday, September 25th. Scotiabank dropped their price target on shares of Air Canada from C$27.00 to C$26.00 and set an "outperform" rating on the stock in a research note on Wednesday, September 3rd. Finally, Raymond James Financial raised their price objective 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. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of C$24.91.

Air Canada Price Performance

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 stock has a market capitalization of C$5.43 billion, a PE ratio of 4.64, a P/E/G ratio of 0.02 and a beta of 1.62. The company's fifty day simple moving average is C$18.99 and its two-hundred day simple moving average is C$18.18.

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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