ATS Co. (TSE:ATS) Given Consensus Recommendation of “Moderate Buy” by Analysts

ATS Co. (TSE:ATS) has been assigned a consensus recommendation of “Moderate Buy” from the eight research firms that are presently covering the firm, Marketbeat reports. Two investment analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is C$42.25.

ATS has been the topic of several research analyst reports. TD lowered shares of ATS from a “buy” rating to a “hold” rating and cut their target price for the stock from C$49.00 to C$33.00 in a research note on Monday. National Bank Financial dropped their price objective on shares of ATS from C$57.00 to C$42.00 and set an “outperform” rating on the stock in a report on Friday, August 7th. Stifel Nicolaus cut their price objective on shares of ATS from C$52.00 to C$44.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. TD Securities downgraded ATS from a “strong-buy” rating to a “hold” rating in a research note on Monday. Finally, Raymond James Financial decreased their target price on ATS from C$46.00 to C$33.00 and set an “outperform” rating for the company in a research report on Friday, August 7th.

ATS News Summary

Here are the key news stories impacting ATS this week:

• Positive Sentiment: Even after the reductions, TD’s C$33 target and RBC’s C$41 target remain above the recently cited C$27.51 share price, implying analysts still see potential recovery if operating performance improves.
• Neutral Sentiment: RBC lowered its target to C$41 from C$50, while Raymond James, National Bank Financial, Desjardins and Stifel Nicolaus reduced their targets to C$33, C$42, C$46 and C$44, respectively. The broad-based revisions suggest analysts are recalibrating valuation rather than abandoning the stock. Raymond James Cuts ATS Price Target National Bank Financial Cuts ATS Price Target
• Negative Sentiment: The combination of multiple price-target cuts and TD’s rating downgrade is weighing on sentiment. ATS shares are trading well below their 50-day and 200-day moving averages and near their 52-week low, indicating persistent investor concern about growth, profitability and valuation. BayStreet analyst ratings
• Neutral Sentiment: An article about India’s “UP ATS” pursuing a counterfeit-currency suspect concerns a law-enforcement unit and is unrelated to ATS Co. (TSX: ATS); it should not affect the company’s shares. UP ATS counterfeit currency article

ATS Price Performance

Shares of ATS stock opened at C$28.35 on Wednesday. The stock’s 50-day moving average is C$37.98 and its 200 day moving average is C$41.04. ATS has a one year low of C$27.36 and a one year high of C$49.48. The firm has a market cap of C$2.75 billion, a price-to-earnings ratio of 59.06 and a beta of 1.20.

ATS (TSE:ATS) last issued its quarterly earnings results on Thursday, August 6th. The company reported C$0.35 earnings per share (EPS) for the quarter. The firm had revenue of C$698.30 million for the quarter. ATS had a return on equity of 2.66% and a net margin of 1.61%.

Insider Transactions at ATS

In other news, insider Angella Alexander acquired 915 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The stock was purchased at an average price of C$39.12 per share, for a total transaction of C$35,794.80. Following the completion of the acquisition, the insider directly owned 2,207 shares in the company, valued at C$86,337.84. The trade was a 70.82% increase in their position. Also, insider Jeff Adamson bought 953 shares of the stock in a transaction dated Tuesday, July 7th. The shares were purchased at an average cost of C$39.12 per share, for a total transaction of C$37,281.36. Following the completion of the transaction, the insider directly owned 6,199 shares of the company’s stock, valued at C$242,504.88. This trade represents a 18.17% increase in their ownership of the stock. In the last ninety days, insiders have acquired 7,311 shares of company stock valued at $358,222. Company insiders own 0.97% of the company’s stock.

ATS Company Profile

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.