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

Key Points

• MDA Space Ltd.'s share price dropped by 25% to C$32.99 during mid-day trading, significantly below its previous close of C$44.01.
• Analysts remain optimistic, with Scotiabank and Desjardins upgrading their ratings and raising price targets, with a consensus price target of C$43.22.
• Insider trading activity includes the sale of 288,000 shares over the past three months, raising concerns as insiders own only 12.60% of the company.

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

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on MDA shares. Scotiabank upgraded shares of MDA Space from a "hold" rating to a "strong-buy" rating and raised their price objective for the company from C$39.00 to C$55.00 in a research note on Tuesday, August 5th. Desjardins lifted their target price on shares of MDA Space from C$40.00 to C$55.00 and gave the stock a "buy" rating in a report on Tuesday, August 5th. Canaccord Genuity Group lifted their target price on shares of MDA Space from C$36.00 to C$45.00 and gave the stock a "buy" rating in a report on Friday, July 11th. BMO Capital Markets lifted their target price on shares of MDA Space from C$33.00 to C$53.00 and gave the stock an "outperform" rating in a report on Tuesday, August 5th. Finally, Royal Bank Of Canada lifted their target price on shares of MDA Space from C$42.00 to C$53.00 and gave the stock an "outperform" rating in a report on Tuesday, August 5th. One analyst has rated the stock with a Strong Buy rating and five have issued a Buy rating to the company. Based on data from MarketBeat.com, MDA Space currently has an average rating of "Buy" and a consensus price target of C$43.22.

MDA Space Stock Performance

The company has a market cap of C$4.12 billion, a P/E ratio of 36.66 and a beta of -0.63. The company has a quick ratio of 1.00, a current ratio of 0.83 and a debt-to-equity ratio of 34.94. The business has a fifty day simple moving average of C$41.97 and a two-hundred day simple moving average of C$32.17.

Insider Transactions at MDA Space

In other MDA Space news, Senior Officer Minda Marie Suchan sold 40,000 shares of the firm's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of C$30.64, for a total value of C$1,225,608.00. Also, Senior Officer Holly Lynn Johnson sold 31,200 shares of the firm's stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of C$30.70, for a total value of C$957,840.00. Over the last three months, insiders sold 288,000 shares of company stock valued at $8,517,168. Company insiders own 12.60% of the company's stock.

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.

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