Air Canada (TSE:AC) Share Price Crosses Below 200-Day Moving Average - Here's What Happened

Air Canada (TSE:AC) saw its share price dip below the 200-day moving average during trading on Wednesday. The stock's 200-day moving average stands at C$19.45, while it reached a low of C$15.19. At the time of reporting, Air Canada shares were trading at C$15.22, with a total trading volume of 3,246,600 shares.

Analyst Ratings and Adjustments

Several analysts have provided insights on Air Canada’s stock. CIBC notably lowered their price target from C$28.00 to C$24.00 as mentioned in a research update on February 18th. Conversely, ATB Capital increased their price objective from C$28.00 to C$31.00 and rated the stock as “outperform” in a report on December 18th. Similarly, Raymond James upgraded Air Canada to a “moderate buy” rating on December 17th. However, JPMorgan Chase downgraded the stock from an “overweight” to “neutral” status, also adjusting their price target from C$34.00 down to C$24.00 in a note released on March 3rd. Cormark also raised their target price for the company from C$26.75 to C$29.50 on December 18th. Overall, three analysts have given a hold rating, nine analysts rate it as a buy, and one as a strong buy, resulting in a consensus rating of “Moderate Buy” with a target price estimate of C$25.20 according to MarketBeat.

Air Canada Stock Metrics

Air Canada has important financial metrics worth noting. The company reports a quick ratio of 1.06, a current ratio of 0.92, and a significant debt-to-equity ratio of 400.00, reflecting its leveraged position. The stock has a market capitalization of C$5.43 billion, a P/E ratio of 2.14, and a price-to-earnings-growth ratio of 0.02, indicating how the stock is valued in relation to its growth potential. The beta of 2.39 suggests that the stock is quite volatile compared to the market.

Insider Transactions

Recent insider transactions have been reported as well. Director Vagn Sorensen purchased 11,440 shares on February 19th at an average price of C$17.40, totaling approximately C$199,057. Senior Officer Craig Landry also bought 13,644 shares at an average price of C$16.75 on February 28th, amounting to about C$228,546. These acquisitions indicate some level of confidence from insiders, although they own just 0.14% of the company’s stock.

About Air Canada

Air Canada provides a range of airline services, including domestic, U.S. transborder, and international flights. It operates scheduled passenger services under its Air Canada Vacations and Air Canada Rouge brands, catering to both the Canadian market and the international community.

Further Insights

This situation with Air Canada raises important considerations for potential investors. Before making any decisions, individuals should assess their investment strategies and consult with financial experts.

Airline, Stock, Analysis