AutoCanada (TSE:ACQ) Shares Down 15.5% - Here's What Happened

Key Points

• Shares plunged 15.5% intraday to C$16.91 (trading as low as C$14.00) from a prior close of C$20.01, with volume up about 42% versus average.
• Despite the sell‑off, analysts show a consensus "Moderate Buy" and a average price target of C$34.04 (individual targets range up to C$42), with five Buy and two Hold ratings.
• Fundamentals are weak: the company reported quarterly EPS of C($0.06), had a negative net margin and ROE, a market cap of C$369M and a very high debt‑to‑equity ratio of 376.45.

AutoCanada Inc. (TSE:ACQ - Get Free Report)'s stock price was down 15.5% during trading on Thursday . The company traded as low as C$14.00 and last traded at C$16.91. Approximately 83,378 shares changed hands during mid-day trading, an increase of 42% from the average daily volume of 58,808 shares. The stock had previously closed at C$20.01.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on ACQ shares. National Bank Financial dropped their target price on shares of AutoCanada from C$31.00 to C$29.00 and set an "outperform" rating on the stock in a report on Monday, December 15th. Canadian Imperial Bank of Commerce lifted their price target on shares of AutoCanada from C$30.00 to C$34.00 in a report on Thursday, February 5th. Canaccord Genuity Group boosted their price target on shares of AutoCanada from C$36.00 to C$42.00 and gave the stock a "buy" rating in a research note on Monday, January 19th. Acumen Capital raised their price objective on AutoCanada from C$35.50 to C$39.25 and gave the company a "speculative buy" rating in a research report on Tuesday, January 27th. Finally, Royal Bank Of Canada reduced their target price on AutoCanada from C$30.00 to C$29.00 and set a "sector perform" rating on the stock in a report on Tuesday, January 6th. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, AutoCanada currently has a consensus rating of "Moderate Buy" and a consensus price target of C$34.04.

AutoCanada Price Performance

The company has a market cap of C$369.12 million, a P/E ratio of -39.95, a PEG ratio of 0.30 and a beta of 1.76. The firm's 50-day moving average is C$25.77 and its two-hundred day moving average is C$26.26. The company has a debt-to-equity ratio of 376.45, a current ratio of 1.09 and a quick ratio of 0.25.

AutoCanada (TSE:ACQ - Get Free Report) last released its quarterly earnings data on Wednesday, March 18th. The company reported C($0.06) EPS for the quarter. AutoCanada had a negative net margin of 0.18% and a negative return on equity of 1.67%. The business had revenue of C$1.12 billion for the quarter. Analysts anticipate that AutoCanada Inc. will post 2.4311927 earnings per share for the current year.

AutoCanada Company Profile

AutoCanada Inc operates car dealerships in Canada. The company offers new and used vehicles, spare parts, maintenance services, and customer financing. AutoCanada retails brands such as Chrysler, Dodge, Jeep, Ram, Cadillac, Chevrolet, Buick, GMC, Audi, Volkswagen, BMW, Mini, Infiniti, Nissan, Hyundai, Kia, Fiat, Mitsubishi, and Subaru. The majority of revenue is generated in the new-vehicles sales segment.

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