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

Key Points

• ATS shares fell to a new 52-week low of $18.34, down 2.6% on the day, with the stock trading well below its 50-day and 200-day moving averages.
• Recent earnings missed expectations: quarterly EPS was $0.25 versus a $0.28 consensus, while revenue of $488.38 million declined 5.8% year over year and fell short of estimates.
• Analyst sentiment has weakened, with multiple firms downgrading the stock; ATS now carries an average “Hold” rating and a $42.50 average price target. Institutional investors still own approximately 75.84% of the company.

ATS Corporation (NYSE:ATS - Get Free Report) shares hit a new 52-week low during trading on Tuesday. The stock traded as low as $18.34 and last traded at $18.3290, with a volume of 93209 shares trading hands. The stock had previously closed at $18.82.

Analyst Ratings Changes

A number of equities analysts have recently commented on the company. Desjardins started coverage on ATS in a report on Tuesday, June 16th. They set a "buy" rating for the company. Wall Street Zen lowered ATS from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. Weiss Ratings downgraded ATS from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday. TD Securities cut shares of ATS from a "buy" rating to a "hold" rating in a report on Monday, August 10th. Finally, Zacks Research downgraded shares of ATS from a "hold" rating to a "strong sell" rating in a research note on Tuesday, June 9th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, ATS presently has an average rating of "Hold" and an average target price of $42.50.

ATS Stock Down 2.6%

The stock has a market capitalization of $1.80 billion, a price-to-earnings ratio of 53.91 and a beta of 1.17. The company has a quick ratio of 1.33, a current ratio of 1.63 and a debt-to-equity ratio of 0.75. The stock has a 50 day moving average price of $21.31 and a 200 day moving average price of $26.96.

ATS (NYSE:ATS - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.03). The firm had revenue of $488.38 million during the quarter, compared to analyst estimates of $509.71 million. ATS had a net margin of 1.60% and a return on equity of 8.96%. The business's quarterly revenue was down 5.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.41 EPS. As a group, analysts forecast that ATS Corporation will post 1.12 EPS for the current year.

Hedge Funds Weigh In On ATS

A number of hedge funds have recently modified their holdings of ATS. Pictet Asset Management Holding SA lifted its stake in ATS by 2.6% during the 1st quarter. Pictet Asset Management Holding SA now owns 16,423 shares of the company's stock valued at $461,000 after acquiring an additional 417 shares in the last quarter. State of Wyoming purchased a new stake in shares of ATS in the second quarter valued at about $33,000. Deutsche Bank AG purchased a new stake in shares of ATS in the second quarter valued at about $311,000. Savant Capital LLC bought a new position in shares of ATS during the fourth quarter valued at about $313,000. Finally, TD Asset Management Inc boosted its holdings in ATS by 1.0% during the fourth quarter. TD Asset Management Inc now owns 1,193,208 shares of the company's stock worth $32,913,000 after purchasing an additional 11,446 shares during the last quarter. Institutional investors and hedge funds own 75.84% of the company's stock.

ATS Company Profile

ATS Corporation NYSE: ATS is a Canadian automation and technology company that designs, builds and services customized manufacturing systems. The company helps manufacturers automate production, assembly, testing, inspection, packaging and material-handling processes, with solutions tailored to complex and high-volume applications.

ATS serves a range of industries, including life sciences, pharmaceuticals, medical devices, transportation, electric vehicles, energy, consumer products and industrial manufacturing.

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