ATS (NYSE:ATS) Hits New 52-Week Low - Here's Why

Key Points

• ATS shares hit a new 52-week low of $18.88 and last traded at $19.21, down 1.7% during the session. The stock is well below its 50-day and 200-day moving averages of $24.89 and $28.80, respectively.
• Recent earnings missed expectations: ATS reported quarterly EPS of $0.25 versus the $0.28 consensus, while revenue of $488.38 million fell short of estimates and declined 5.8% year over year.
• Analyst sentiment has weakened, with multiple firms downgrading the stock; the consensus rating is now Hold, although the average price target of $42.50 remains substantially above the current share price.

ATS Corporation (NYSE:ATS - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $18.88 and last traded at $19.21, with a volume of 244110 shares trading hands. The stock had previously closed at $19.21.

Analyst Ratings Changes

Several research analysts recently issued reports on the company. Desjardins started coverage on ATS in a research note on Tuesday, June 16th. They issued a "buy" rating on the stock. TD Securities cut ATS from a "buy" rating to a "hold" rating in a report on Monday, August 10th. Wall Street Zen downgraded ATS from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. Royal Bank Of Canada dropped their price target on ATS from $51.00 to $50.00 and set an "outperform" rating on the stock in a research report on Friday, May 29th. Finally, Zacks Research lowered ATS from a "hold" rating to a "strong sell" rating in a research note on Tuesday, June 9th. Three equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $42.50.

ATS Trading Down 1.7%

The company has a market capitalization of $1.87 billion, a PE ratio of 56.12 and a beta of 1.22. The company's fifty day moving average is $24.89 and its 200-day moving average is $28.80. The company has a debt-to-equity ratio of 0.75, a current ratio of 1.63 and a quick ratio of 1.33.

ATS (NYSE:ATS - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.25 earnings per share for the quarter, missing analysts' consensus estimates of $0.28 by ($0.03). The company had revenue of $488.38 million for the quarter, compared to analysts' expectations of $509.71 million. ATS had a return on equity of 8.96% and a net margin of 1.60%.The firm's quarterly revenue was down 5.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.41 EPS. On average, analysts anticipate that ATS Corporation will post 1.12 EPS for the current fiscal year.

Institutional Investors Weigh In On ATS

A number of institutional investors have recently added to or reduced their stakes in the stock. Smartleaf Asset Management LLC bought a new position in ATS in the fourth quarter worth about $29,000. Quarry LP bought a new stake in shares of ATS in the 3rd quarter valued at about $32,000. State of Wyoming purchased a new position in shares of ATS in the 2nd quarter worth approximately $33,000. Raymond James Financial Inc. purchased a new position in shares of ATS in the 2nd quarter worth approximately $43,000. Finally, Barclays PLC raised its stake in shares of ATS by 16.8% during the 4th quarter. Barclays PLC now owns 5,264 shares of the company's stock worth $145,000 after acquiring an additional 756 shares in the last quarter. Institutional investors own 75.84% of the company's stock.

About ATS

ATS Corporation NYSE: ATS is a Canada-based global provider of automation and energy solutions. Headquartered in Cambridge, Ontario, the company specializes in the design, engineering and manufacturing of custom automation and test systems, as well as fluid handling and control products. Since its founding in 1978, ATS has focused on delivering integrated hardware and software solutions that help original equipment manufacturers (OEMs) improve efficiency, quality and throughput across a range of industries.

Through its Automation segment, ATS develops bespoke assembly and testing platforms for sectors such as life sciences, consumer electronics, automotive and industrial equipment.

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