ATS (NYSE:ATS) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded ATS from "strong-buy" to "hold", and mixed analyst coverage leaves the stock with an average rating of Hold and a consensus price target of $35.00.
• ATS beat quarterly EPS estimates ($0.34 vs. $0.30) but missed on revenue ($553.8M vs. ~$723M), showing thin profitability (net margin 0.77%) despite 16.7% year-over-year revenue growth.

ATS (NYSE:ATS - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other research analysts also recently issued reports on the stock. Scotiabank reiterated an "outperform" rating on shares of ATS in a research note on Thursday, January 29th. JPMorgan Chase & Co. raised their price target on shares of ATS from $33.00 to $35.00 and gave the company a "neutral" rating in a research report on Friday, January 16th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of ATS in a research report on Wednesday, January 21st. TD Securities reiterated a "buy" rating on shares of ATS in a research note on Monday, January 26th. Finally, Wall Street Zen lowered ATS from a "strong-buy" rating to a "buy" rating in a report on Sunday, February 15th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $35.00.

ATS Price Performance

ATS opened at $29.80 on Tuesday. The firm has a market cap of $2.92 billion, a PE ratio of 198.71 and a beta of 1.10. The stock has a 50-day moving average price of $30.22 and a 200-day moving average price of $28.04. ATS has a 1 year low of $20.90 and a 1 year high of $33.01. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.65 and a quick ratio of 1.37.

ATS (NYSE:ATS - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.30 by $0.04. The company had revenue of $553.81 million for the quarter, compared to the consensus estimate of $722.96 million. ATS had a net margin of 0.77% and a return on equity of 9.67%. ATS's revenue for the quarter was up 16.7% on a year-over-year basis. During the same period in the prior year, the firm posted $0.32 EPS. Sell-side analysts predict that ATS will post 1.02 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. Smartleaf Asset Management LLC bought a new position in ATS during the fourth quarter valued at approximately $29,000. Quarry LP purchased a new stake in ATS in the third quarter worth approximately $32,000. Raymond James Financial Inc. bought a new stake in ATS in the 2nd quarter worth approximately $43,000. State of Wyoming bought a new stake in ATS in the 3rd quarter worth approximately $112,000. Finally, Barclays PLC raised its stake in ATS by 16.8% during the 4th quarter. Barclays PLC now owns 5,264 shares of the company's stock valued at $145,000 after buying an additional 756 shares during the last quarter. 75.84% of the stock is owned by hedge funds and other institutional investors.

About ATS

ATS Corporation NYSE: ATS is a Canada-based global provider of automation and energy solutions. Headquartered in Cambridge, Ontario, the company specializes in the design, engineering and manufacturing of custom automation and test systems, as well as fluid handling and control products. Since its founding in 1978, ATS has focused on delivering integrated hardware and software solutions that help original equipment manufacturers (OEMs) improve efficiency, quality and throughput across a range of industries.

Through its Automation segment, ATS develops bespoke assembly and testing platforms for sectors such as life sciences, consumer electronics, automotive and industrial equipment.

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