ATS (TSE:ATS) Shares Down 22.9% – Here’s What Happened

ATS Co. (TSE:ATS)’s stock price fell 22.9% during mid-day trading on Thursday . The company traded as low as C$28.00 and last traded at C$30.30. Approximately 1,460,172 shares were traded during mid-day trading, an increase of 443% from the average session volume of 268,793 shares. The stock had previously closed at C$39.30.

ATS News Roundup

Here are the key news stories impacting ATS this week:

• Positive Sentiment: Desjardins maintained a buy rating while lowering its target to C$46 from C$52, implying approximately 56.5% upside from C$29.39. BayStreet.CA analyst ratings
• Positive Sentiment: Stifel Nicolaus also kept a buy rating and set a C$44 target, representing roughly 49.7% potential upside. BayStreet.CA analyst ratings
• Positive Sentiment: Raymond James retained an outperform rating with a C$33 target, while National Bank Financial maintained outperform and set a C$42 target. These targets imply more limited and substantial upside, respectively. BayStreet.CA analyst ratings
• Neutral Sentiment: ATS reported quarterly revenue of C$698.3 million and earnings of C$0.35 per share. Its 2.41% net margin and 4.08% return on equity indicate profitability remains relatively modest. ATS quarterly earnings
• Negative Sentiment: The broad target reductions—from prior targets as high as C$57—signal that analysts have tempered their earnings or valuation assumptions. The stock also remains well below its 50-day and 200-day moving averages and near its 1-year low, highlighting continued investor concerns despite the bullish ratings.

Analyst Ratings Changes

A number of research analysts have recently commented on ATS shares. National Bank Financial dropped their price objective on shares of ATS from C$57.00 to C$42.00 and set an “outperform” rating for the company in a research note on Friday. Desjardins cut their price objective on shares of ATS from C$52.00 to C$46.00 and set a “buy” rating on the stock in a report on Friday. TD raised their target price on shares of ATS from C$48.00 to C$49.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Royal Bank Of Canada lowered their target price on shares of ATS from C$51.00 to C$50.00 and set an “outperform” rating for the company in a report on Friday, May 29th. Finally, Scotiabank upped their price target on shares of ATS from C$48.00 to C$51.00 and gave the stock a “sector outperform” rating in a research report on Tuesday, April 28th. Eight equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus price target of C$45.38.

ATS Stock Up 2.9%

The stock has a fifty day moving average of C$38.51 and a two-hundred day moving average of C$41.20. The stock has a market cap of C$2.86 billion, a price-to-earnings ratio of 61.50 and a beta of 1.20.

ATS (TSE:ATS) last announced its quarterly earnings results on Thursday, August 6th. The company reported C$0.35 EPS for the quarter. The company had revenue of C$698.30 million during the quarter. ATS had a return on equity of 4.08% and a net margin of 2.41%.

Insider Buying and Selling at ATS

In other ATS news, insider Angella Alexander bought 915 shares of the company’s stock in a transaction that occurred on Tuesday, July 7th. The stock was purchased at an average price of C$39.12 per share, with a total value of C$35,794.80. Following the transaction, the insider owned 2,207 shares in the company, valued at C$86,337.84. This trade represents a 70.82% increase in their ownership of the stock. Also, insider Giuseppe (Joe) Tassone sold 4,842 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of C$41.55, for a total transaction of C$201,185.10. Following the completion of the transaction, the insider owned 7,026 shares in the company, valued at C$291,930.30. The trade was a 40.80% decrease in their position. In the last ninety days, insiders have bought 7,311 shares of company stock worth $358,222. Company insiders own 0.97% of the company’s stock.

About ATS

ATS Corp formerly, ATS Automation Tooling Systems Inc is a Canada-based company that provides automation systems. The company designs and builds customized automated manufacturing and testing systems for customers, and provides pre- and post-automation services. The company’s products comprise conveyor systems, automated electrified monorails, tray handlers, laser systems, and other hardware and software products. The company also provides pre-automation solutions, including strategic direction and planning services, as well as aftermarket support.