Transat A.T. (TSE:TRZ) Stock Passes Below Fifty Day Moving Average - Should You Sell?

Key Points

• Transat A.T. Inc.'s stock price has recently fallen below its 50-day moving average of C$2.55, trading as low as C$2.52.
• Equities analysts have mixed ratings on the stock, with three sell ratings and one buy rating, resulting in a consensus rating of "Hold" and an average target price of C$2.61.
• The company has a significant debt-to-equity ratio of -241.60, indicating potential financial instability amidst its operations in the holiday travel sector.

Transat A.T. Inc. (TSE:TRZ - Get Free Report)'s stock price crossed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of C$2.55 and traded as low as C$2.52. Transat A.T. shares last traded at C$2.54, with a volume of 17,484 shares traded.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. TD Securities upped their price objective on shares of Transat A.T. from C$4.75 to C$5.50 and gave the stock a "buy" rating in a research report on Monday, June 16th. National Bankshares raised their target price on shares of Transat A.T. from C$1.50 to C$1.75 and gave the company an "underperform" rating in a report on Friday, June 6th. Finally, Scotiabank raised their target price on shares of Transat A.T. from C$1.75 to C$2.00 and gave the company an "underperform" rating in a report on Friday, June 13th. Three analysts have rated the stock with a sell rating, one has assigned a hold rating and one has assigned a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of C$2.61.

Transat A.T. Price Performance

The company's 50-day moving average is C$2.55 and its 200-day moving average is C$1.95. The company has a debt-to-equity ratio of -241.60, a current ratio of 0.81 and a quick ratio of 0.76. The firm has a market capitalization of C$100.86 million, a price-to-earnings ratio of -0.87, a PEG ratio of -0.04 and a beta of 1.50.

About Transat A.T.

Transat A.T. Inc is a Canadian company that specializes in the organization, marketing, and distribution of holiday travel in the tourism industry. The company offers vacation packages, hotel stays, and air travel under the Transat and Air Transat brands. The company's core business consists of tour operators based in Canada that are vertically integrated with its other services of air transportation, distribution through a dynamic travel agency network, value-added services at travel destinations, and accommodations.

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