AutoCanada (TSE:ACQ) Stock Price Down 15.5% on Analyst Downgrade

AutoCanada Inc. (TSE:ACQ) shares traded down 15.5% during trading on Thursday after BMO Capital Markets lowered their price target on the stock from C$36.00 to C$24.00. The company traded as low as C$14.00 and last traded at C$16.91. 83,378 shares were traded during mid-day trading, an increase of 42% from the average session volume of 58,808 shares. The stock had previously closed at C$20.01.

A number of other analysts also recently weighed in on ACQ. Royal Bank Of Canada cut their target price on AutoCanada from C$28.00 to C$18.00 in a research report on Thursday. National Bank Financial cut AutoCanada from an “outperform” rating to a “hold” rating and decreased their price target for the stock from C$29.00 to C$24.00 in a research report on Thursday. Canadian Imperial Bank of Commerce downgraded AutoCanada from an “outperform” rating to a “neutral” rating and dropped their price target for the company from C$34.00 to C$20.00 in a research note on Friday. Canaccord Genuity Group cut shares of AutoCanada from a “buy” rating to a “hold” rating and cut their price objective for the stock from C$42.00 to C$22.00 in a research report on Thursday. Finally, ATB Cormark Capital Markets reduced their price objective on shares of AutoCanada from C$25.00 to C$22.00 and set a “sector perform” rating on the stock in a research note on Thursday. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of C$24.18.

Key AutoCanada News

Here are the key news stories impacting AutoCanada this week:

• Negative Sentiment: Q4 results missed expectations — AutoCanada reported C($0.06) EPS on C$1.12B revenue, posted a negative net margin (-0.18%) and negative ROE (-1.67%). Management commentary and the slide deck flagged market headwinds and an internal overhaul. Earnings Transcript
• Negative Sentiment: MarketWatch coverage highlights the share weakness tied to “market headwinds” and the company’s internal overhaul weighing on Q4 results — a narrative that likely pressured sentiment. MarketWatch Article
• Negative Sentiment: BMO Capital Markets cut its price target to C$24 (from C$36) — a sizable trim that signals reduced confidence in the recovery timeline. BayStreet.CA
• Negative Sentiment: Canadian Imperial Bank of Commerce downgraded ACQ from “outperform” to “neutral” and cut its target to C$20 (from C$34), lowering buy-side momentum. BayStreet.CA
• Negative Sentiment: ATB Cormark lowered its target to C$22 (from C$25) and set a “sector perform” rating, reflecting more cautious near-term expectations. BayStreet.CA
• Negative Sentiment: RBC trimmed its target to C$18 (from C$28), signaling limited upside and greater risk perception after Q4. BayStreet.CA
• Negative Sentiment: National Bank Financial downgraded ACQ to “hold” and cut its target to C$24 (from C$29), joining peers in reducing enthusiasm. BayStreet.CA
• Negative Sentiment: Canaccord Genuity moved ACQ from “buy” to “hold” and slashed its target to C$22 (from C$42), a steep reduction that removes a prior bullish driver. BayStreet.CA

AutoCanada Stock Up 0.9%

The stock’s 50-day moving average price is C$25.46 and its 200-day moving average price is C$26.08. The company has a current ratio of 1.07, a quick ratio of 0.25 and a debt-to-equity ratio of 409.72. The stock has a market cap of C$396.15 million, a price-to-earnings ratio of -42.88, a P/E/G ratio of 0.30 and a beta of 1.76.

AutoCanada (TSE:ACQ) last posted its quarterly earnings data on Wednesday, March 18th. The company reported C($0.06) earnings per share for the quarter. AutoCanada had a return on equity of 3.40% and a net margin of 0.33%.The firm had revenue of C$1.12 billion for the quarter. On average, sell-side analysts expect that AutoCanada Inc. will post 2.4311927 earnings per share for the current year.

About AutoCanada

AutoCanada Inc operates car dealerships in Canada. The company offers new and used vehicles, spare parts, maintenance services, and customer financing. AutoCanada retails brands such as Chrysler, Dodge, Jeep, Ram, Cadillac, Chevrolet, Buick, GMC, Audi, Volkswagen, BMW, Mini, Infiniti, Nissan, Hyundai, Kia, Fiat, Mitsubishi, and Subaru. The majority of revenue is generated in the new-vehicles sales segment.