ATS Co. (TSE:ATS) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus: Six of eight analysts rate ATS a buy and two recommend holding, with an average 12-month price target of C$42.25.
• Several brokerages recently cut their price targets, including Desjardins to C$46, RBC to C$41, Stifel to C$44 and Raymond James to C$33, although most retained positive ratings.
• ATS shares opened at C$28.35, near their one-year low of C$27.36 and below both the 50-day and 200-day moving averages. The company reported C$0.35 in quarterly EPS on C$698.3 million of revenue, while recent insider activity included both a sale and a purchase.

ATS Co. (TSE:ATS - Get Free Report) has been given an average recommendation of "Moderate Buy" by the eight analysts that are currently covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and six have assigned a buy recommendation to the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is C$42.25.

Several research analysts have recently issued reports on the stock. Desjardins lowered their price target on shares of ATS from C$52.00 to C$46.00 and set a "buy" rating for the company in a report on Friday, August 7th. Royal Bank Of Canada dropped their target price on ATS from C$50.00 to C$41.00 in a research report on Monday. Stifel Nicolaus reduced their price target on ATS from C$52.00 to C$44.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Scotiabank raised their price objective on shares of ATS from C$48.00 to C$51.00 and gave the company a "sector outperform" rating in a report on Tuesday, April 28th. Finally, Raymond James Financial cut their target price on shares of ATS from C$46.00 to C$33.00 and set an "outperform" rating on the stock in a research report on Friday, August 7th.

Insider Buying and Selling

In other news, insider Giuseppe (Joe) Tassone sold 4,842 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of C$41.55, for a total value of C$201,185.10. Following the completion of the sale, the insider owned 7,026 shares of the company's stock, valued at approximately C$291,930.30. This represents a 40.80% decrease in their ownership of the stock. Also, insider Miroslav Kafedzhiev acquired 4,737 shares of the business's stock in a transaction that occurred on Tuesday, July 7th. The stock was bought at an average cost of C$39.12 per share, for a total transaction of C$185,311.44. Following the completion of the purchase, the insider owned 4,737 shares of the company's stock, valued at C$185,311.44. This trade represents a ∞ increase in their ownership of the stock. Insiders have purchased a total of 7,311 shares of company stock valued at $358,222 over the last quarter. 0.97% of the stock is currently owned by company insiders.

ATS Trading Up 3.1%

Shares of ATS stock opened at C$28.35 on Wednesday. The firm has a market capitalization of C$2.75 billion, a PE ratio of 59.06 and a beta of 1.20. The firm's 50 day moving average is C$37.98 and its 200 day moving average is C$41.04. ATS has a 1 year low of C$27.36 and a 1 year high of C$49.48.

ATS (TSE:ATS - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported C$0.35 EPS for the quarter. ATS had a net margin of 1.61% and a return on equity of 2.66%. The business had revenue of C$698.30 million during the quarter.

Key Stories Impacting ATS

Here are the key news stories impacting ATS this week:

• Positive Sentiment: Even after the reductions, TD’s C$33 target and RBC’s C$41 target remain above the recently cited C$27.51 share price, implying analysts still see potential recovery if operating performance improves.
• Neutral Sentiment: RBC lowered its target to C$41 from C$50, while Raymond James, National Bank Financial, Desjardins and Stifel Nicolaus reduced their targets to C$33, C$42, C$46 and C$44, respectively. The broad-based revisions suggest analysts are recalibrating valuation rather than abandoning the stock. Raymond James Cuts ATS Price Target National Bank Financial Cuts ATS Price Target
• Negative Sentiment: The combination of multiple price-target cuts and TD’s rating downgrade is weighing on sentiment. ATS shares are trading well below their 50-day and 200-day moving averages and near their 52-week low, indicating persistent investor concern about growth, profitability and valuation. BayStreet analyst ratings
• Neutral Sentiment: An article about India’s “UP ATS” pursuing a counterfeit-currency suspect concerns a law-enforcement unit and is unrelated to ATS Co. TSX: ATS; it should not affect the company’s shares. UP ATS counterfeit currency article

About ATS

ATS Corp formerly, ATS Automation Tooling Systems Inc is a Canada-based company that provides automation systems. The company designs and builds customized automated manufacturing and testing systems for customers, and provides pre- and post-automation services. The company's products comprise conveyor systems, automated electrified monorails, tray handlers, laser systems, and other hardware and software products. The company also provides pre-automation solutions, including strategic direction and planning services, as well as aftermarket support.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source