Air Canada (TSE:AC) Shares Pass Above 50 Day Moving Average - Should You Sell?

Key Points

• Air Canada shares rose above their 50-day moving average, reaching C$28.91 before closing at C$28.17, compared with a 50-day average of C$26.99.
• Analyst sentiment is broadly positive: eight analysts rate the stock a Buy and three rate it a Hold, producing a “Moderate Buy” consensus and an average price target of C$32.29.
• The company reported quarterly EPS of C$0.40 and revenue of C$6.27 billion, but carries substantial leverage, with a debt-to-equity ratio of 478.10.

Air Canada (TSE:AC - Get Free Report)'s share price passed above its fifty day moving average during trading on Tuesday . The stock has a fifty day moving average of C$26.99 and traded as high as C$28.91. Air Canada shares last traded at C$28.17, with a volume of 3,491,613 shares changing hands.

Analyst Ratings Changes

Several research firms have recently issued reports on AC. Royal Bank Of Canada lifted their price target on Air Canada from C$28.00 to C$37.00 and gave the stock an "outperform" rating in a research note on Thursday, August 13th. Stifel Nicolaus raised their target price on shares of Air Canada from C$30.00 to C$38.00 and gave the company a "buy" rating in a report on Wednesday, August 19th. BMO Capital Markets lifted their target price on shares of Air Canada from C$30.00 to C$37.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 12th. Scotia lifted their target price on shares of Air Canada from C$33.50 to C$37.50 and gave the stock a "sector outperform" rating in a research report on Wednesday, August 19th. Finally, National Bank Financial upped their price target on shares of Air Canada from C$29.00 to C$40.00 and gave the company an "outperform" rating in a report on Thursday, August 13th. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of C$32.29.

Air Canada Stock Up 0.1%

The firm's 50 day moving average is C$26.99 and its 200-day moving average is C$22.67. The firm has a market cap of C$7.89 billion, a PE ratio of 21.50, a P/E/G ratio of 0.02 and a beta of 2.02. The company has a quick ratio of 1.05, a current ratio of 0.60 and a debt-to-equity ratio of 478.10.

Air Canada (TSE:AC - Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported C$0.40 EPS for the quarter. The firm had revenue of C$6.27 billion during the quarter. Air Canada had a net margin of 1.82% and a return on equity of 16.92%. As a group, equities research analysts expect that Air Canada will post 2.5789474 earnings per share for the current fiscal year.

About Air Canada

Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Headquartered in Montréal, Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, with more than 10 million members worldwide. Members can earn or redeem points on the world's largest airline partner network of more than 50 airlines, plus through an extensive range of merchandise, hotel and car rental partners.

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