ATS (TSE:ATS) Shares Down 22.9% - Should You Sell?

Key Points

• ATS shares fell 22.9% to C$30.30, reaching as low as C$28.00, with trading volume surging 443% above the average.
• Despite the sell-off, analysts remain bullish: all seven covering analysts rate ATS a Buy, with a consensus price target of C$50.43.
• The company reported quarterly EPS of C$0.35 on revenue of C$698.3 million, while profitability remained modest with a 2.41% net margin and 4.08% return on equity.

Shares of ATS Co. (TSE:ATS - Get Free Report) were down 22.9% during trading on Thursday . The stock traded as low as C$28.00 and last traded at C$30.30. Approximately 1,460,172 shares changed hands during trading, an increase of 443% from the average session volume of 268,793 shares. The stock had previously closed at C$39.30.

Analyst Ratings Changes

ATS has been the topic of a number of research analyst reports. Desjardins set a C$52.00 price target on shares of ATS and gave the company a "buy" rating in a report on Wednesday, June 17th. Royal Bank Of Canada dropped their price objective on ATS from C$51.00 to C$50.00 and set an "outperform" rating for the company in a report on Friday, May 29th. Scotiabank lifted their target price on 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, TD lifted their target price on ATS from C$48.00 to C$49.00 and gave the company a "buy" rating in a report on Friday, May 29th. Seven investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, ATS currently has a consensus rating of "Buy" and a consensus price target of C$50.43.

ATS Price Performance

The firm's 50-day moving average price is C$39.03 and its 200-day moving average price is C$41.38. The company has a market cap of C$2.89 billion, a price-to-earnings ratio of 40.79 and a beta of 1.20.

ATS (TSE:ATS - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported C$0.35 earnings per share (EPS) for the quarter. The business had revenue of C$698.30 million during the quarter. ATS had a return on equity of 4.08% and a net margin of 2.41%.

Insider Activity

In other news, insider Jeff Adamson acquired 953 shares of the business's stock in a transaction on Tuesday, July 7th. The shares were purchased at an average price of C$39.12 per share, for a total transaction of C$37,281.36. Following the acquisition, the insider directly owned 6,199 shares of the company's stock, valued at C$242,504.88. This represents a 18.17% increase in their position. Also, insider Giuseppe (Joe) Tassone sold 4,842 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of C$41.55, for a total transaction of C$201,185.10. Following the completion of the transaction, the insider directly owned 7,026 shares of the company's stock, valued at approximately C$291,930.30. The trade was a 40.80% decrease in their ownership of the stock. Insiders have bought a total of 7,311 shares of company stock worth $358,222 over the last three months. 0.97% of the stock is currently owned by corporate insiders.

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.

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