Air Canada Completes $500 Million Share Buyback to Enhance Shareholder Value

The latest update is out from Air Canada ( (TSE:AC) ).

Air Canada has completed a $500 million substantial issuer bid, purchasing 26,595,744 of its shares at $18.80 each for cancellation. This move is part of its strategy to reduce its fully diluted number of shares below 300 million by 2028, thereby enhancing shareholder value. The successful bid, which was oversubscribed, resulted in the acquisition of approximately 8.24% of the total shares, leaving about 296.1 million shares outstanding. This action underscores Air Canada’s commitment to a balanced capital allocation strategy, which aims to support both growth and shareholder returns.

The most recent analyst rating on (TSE:AC) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Air Canada stock, see the TSE:AC Stock Forecast page.

Spark’s Take on TSE:AC Stock

According to Spark, TipRanks’ AI Analyst, TSE:AC is a Outperform.

Air Canada’s stock is rated at 73, reflecting strong financial recovery and attractive valuation. The positive trajectory in revenue and profitability is tempered by high leverage and overbought technical indicators. The cautious outlook from the earnings call, amid market uncertainties, suggests moderate growth prospects. Overall, while the stock presents opportunities, investors should remain mindful of the financial risks and market dynamics.

To see Spark’s full report on TSE:AC stock, click here.

More about Air Canada

Air Canada is a major player in the airline industry, providing both passenger and cargo air transportation services. It is focused on maintaining a balanced long-term capital allocation strategy to support growth and shareholder value.

Average Trading Volume: 3,646,684

Technical Sentiment Signal: Buy

Current Market Cap: C$6.75B

Learn more about AC stock on TipRanks’ Stock Analysis page.