MDA Space (TSE:MDA) Trading Down 8.5% - Here's Why

Key Points

• MDA Space shares fell 8.5% on Thursday, trading as low as C$50.05 after closing at C$54.90, with trading volume running 56% above average.
• Despite the drop, analysts remain upbeat: several firms recently raised price targets, and the stock now has a consensus Buy rating with an average target price of C$63.40.
• The company’s latest results showed C$0.38 EPS and C$464.1 million in revenue, while insider selling has also been notable, including recent sales by two executives.

Shares of MDA Space Ltd. (TSE:MDA - Get Free Report) dropped 8.5% during trading on Thursday . The company traded as low as C$50.05 and last traded at C$50.22. Approximately 1,839,675 shares changed hands during mid-day trading, an increase of 56% from the average daily volume of 1,176,615 shares. The stock had previously closed at C$54.90.

Analysts Set New Price Targets

MDA has been the subject of a number of analyst reports. Canadian Imperial Bank of Commerce set a C$57.00 price target on MDA Space and gave the company an "outperformer" rating in a research report on Thursday, May 14th. Desjardins increased their price objective on shares of MDA Space from C$66.00 to C$70.00 and gave the stock a "buy" rating in a research report on Monday, June 22nd. Scotia boosted their price target on shares of MDA Space from C$53.00 to C$70.00 and gave the stock a "sector outperform" rating in a research note on Thursday, May 28th. Canaccord Genuity Group increased their price objective on MDA Space from C$56.00 to C$65.00 and gave the company a "buy" rating in a research note on Monday, June 22nd. Finally, Scotiabank boosted their target price on MDA Space from C$70.00 to C$71.00 and gave the stock a "sector outperform" rating in a research note on Monday, June 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, MDA Space has a consensus rating of "Buy" and a consensus target price of C$63.40.

MDA Space Stock Down 8.9%

The business's 50 day moving average is C$54.14 and its 200-day moving average is C$43.33. The company has a debt-to-equity ratio of 20.62, a current ratio of 0.80 and a quick ratio of 1.00. The company has a market cap of C$6.94 billion, a PE ratio of 63.01 and a beta of -0.34.

MDA Space (TSE:MDA - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported C$0.38 EPS for the quarter. MDA Space had a net margin of 6.02% and a return on equity of 7.24%. The company had revenue of C$464.10 million for the quarter. As a group, analysts predict that MDA Space Ltd. will post 0.9605084 EPS for the current year.

Insiders Place Their Bets

In other MDA Space news, insider Luigi Pozzebon sold 31,686 shares of MDA Space stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of C$52.90, for a total transaction of C$1,676,189.40. Also, insider Guillaume Lavoie sold 1,500 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of C$52.63, for a total value of C$78,945.00. Following the transaction, the insider directly owned 6,257 shares of the company's stock, valued at approximately C$329,305.91. This represents a 19.34% decrease in their ownership of the stock. Over the last ninety days, insiders sold 119,269 shares of company stock worth $6,318,903. 12.60% of the stock is owned by corporate insiders.

MDA Space Company Profile

Building the space between proven and possible, MDA Space (TSX:MDA; NYSE:MDA) is a trusted mission partner to the global defence and space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year+ story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. The global MDA Space team of more than 4,000 space experts has the knowledge and know-how to turn an audacious customer vision into an achievable mission - bringing to bear a one-of-a-kind mix of experience, engineering excellence and wide-eyed wonder that's been in our DNA since day one.

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