Transcontinental (TSE:TCL.A) Shares Down 79.5% - Here's Why

Key Points

• Shares plunged 79.5% to C$4.78 on Monday with volume up about 737% (6.23 million shares) from the average, after closing at C$23.35 previously.
• Several brokers have raised targets and maintain a consensus price target of C$27.33 with a "Moderate Buy" rating, creating a large gap between analyst expectations and the current price despite recent quarterly EPS of C$0.08 and a market cap of ~C$400 million.

Transcontinental Inc. (TSE:TCL.A - Get Free Report) shares traded down 79.5% on Monday . The company traded as low as C$4.16 and last traded at C$4.78. 6,226,506 shares traded hands during mid-day trading, an increase of 737% from the average session volume of 743,974 shares. The stock had previously closed at C$23.35.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on TCL.A. National Bank Financial lifted their price objective on Transcontinental from C$24.00 to C$28.00 and gave the stock an "outperform" rating in a report on Tuesday, December 9th. Royal Bank Of Canada upped their target price on Transcontinental from C$26.00 to C$29.00 and gave the company an "outperform" rating in a report on Friday, December 12th. BMO Capital Markets raised their price target on Transcontinental from C$23.00 to C$27.00 in a research report on Tuesday, December 9th. TD Securities lifted their price target on Transcontinental from C$27.00 to C$28.00 and gave the stock a "buy" rating in a research note on Tuesday, December 9th. Finally, Scotiabank boosted their price objective on shares of Transcontinental from C$23.25 to C$26.00 and gave the stock a "sector perform" rating in a research report on Tuesday, December 9th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of C$27.33.

Transcontinental Price Performance

The company has a market capitalization of C$399.70 million, a price-to-earnings ratio of 2.76, a PEG ratio of 6.05 and a beta of 0.74. The company has a current ratio of 1.49, a quick ratio of 1.09 and a debt-to-equity ratio of 54.12. The company's 50 day simple moving average is C$23.25 and its 200-day simple moving average is C$21.53.

Transcontinental (TSE:TCL.A - Get Free Report) last posted its quarterly earnings data on Tuesday, March 10th. The company reported C$0.08 earnings per share for the quarter. The business had revenue of C$263.50 million during the quarter. Transcontinental had a net margin of 4.05% and a return on equity of 6.16%. On average, equities research analysts predict that Transcontinental Inc. will post 2.439834 earnings per share for the current fiscal year.

Transcontinental Company Profile

Transcontinental, or TC Transcontinental, is a Canadian printer and flexible packaging provider that operates in three segments: packaging, printing, and other. Its packaging segment features the production of different plastic products geared toward consumer goods. Production plants specialize in extrusion, lamination, printing, and converting. The company offers premedia, printing, and distribution services through the printing segment. Publishers, retailers, cataloguers, and marketers are some of the customers who tap TC Transcontinental for these printing solutions.

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