MDA Space (TSE:MDA) Stock Price Down 25% - Here's Why

Key Points

• MDA Space Ltd.'s stock price dropped 25% on Monday, trading as low as C$32.91, amidst a significant increase in trading volume.
• Wall Street analysts maintain a positive outlook, with upgrades to target prices, several ratings of "buy" or "outperform", and an average price target of C$43.22.
• Insider selling was noted, with over 288,000 shares sold by company insiders in recent months, raising concerns about potential confidence in the company's future.

MDA Space Ltd. (TSE:MDA - Get Free Report)'s share price was down 25% during trading on Monday . The stock traded as low as C$32.91 and last traded at C$32.99. Approximately 3,165,014 shares were traded during trading, an increase of 500% from the average daily volume of 527,288 shares. The stock had previously closed at C$44.01.

Analyst Upgrades and Downgrades

Several analysts have commented on MDA shares. BMO Capital Markets dropped their target price on shares of MDA Space from C$53.00 to C$40.00 and set an "outperform" rating for the company in a research report on Tuesday. Scotiabank dropped their target price on shares of MDA Space from C$55.00 to C$43.00 and set an "outperform" rating for the company in a research report on Tuesday. Royal Bank Of Canada dropped their target price on shares of MDA Space from C$53.00 to C$45.00 and set an "outperform" rating for the company in a research report on Tuesday. Desjardins dropped their target price on shares of MDA Space from C$56.00 to C$43.00 and set a "buy" rating for the company in a research report on Tuesday. Finally, Canaccord Genuity Group lowered their target price on shares of MDA Space from C$54.00 to C$47.00 in a research note on Tuesday. Six analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company has a consensus rating of "Buy" and an average target price of C$38.44.

MDA Space Trading Down 3.4%

The firm has a market capitalization of C$3.98 billion, a P/E ratio of 35.40 and a beta of -0.63. The business has a 50 day moving average of C$41.89 and a 200-day moving average of C$32.23. The company has a current ratio of 0.83, a quick ratio of 1.00 and a debt-to-equity ratio of 34.94.

Insider Buying and Selling at MDA Space

In related news, Director Brendan Paddick sold 54,400 shares of the stock in a transaction dated Monday, August 25th. The stock was sold at an average price of C$45.09, for a total transaction of C$2,452,727.36. Following the completion of the transaction, the director directly owned 1,181,953 shares in the company, valued at approximately C$53,290,596.72. This trade represents a 4.40% decrease in their ownership of the stock. Also, Director John Carter Risley sold 184,230 shares of the stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of C$43.00, for a total value of C$7,921,890.00. Following the transaction, the director owned 1,246,020 shares of the company's stock, valued at approximately C$53,578,860. The trade was a 12.88% decrease in their ownership of the stock. Insiders sold 372,230 shares of company stock valued at $15,228,315 in the last 90 days. 12.60% of the stock is currently owned by corporate insiders.

About MDA Space

MDA Space Ltd, formerly MDA Ltd, is a global space company. The Company is a robotics, satellite systems and Geo intelligence provider. It provides communications satellites and earth and space observation. It is also involved in space exploration and infrastructure. Its software, AURORA, is a digital satellite product line providing critical new solutions to operators.