tiprankstipranks
Trending News
More News >

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

Story Highlights
Air Canada Launches $500 Million Share Buyback to Enhance Shareholder Value

Confident Investing Starts Here:

Air Canada ( (TSE:AC) ) just unveiled an announcement.

Air Canada has announced a substantial issuer bid to repurchase up to $500 million of its shares through a modified Dutch auction. This move is intended to capitalize on the current undervaluation of its shares, enhance shareholder value, and address shareholder dilution from past financing decisions during the COVID-19 pandemic. The offer allows shareholders to tender their shares at specified prices or agree to a purchase price determined by the auction, with the company funding the buyback from available cash.

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 moderately attractive, supported by strong technical momentum and undervaluation based on P/E ratio. However, financial risks due to high leverage and declining profit margins, along with market uncertainties highlighted in the earnings call, warrant caution.

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

More about Air Canada

Air Canada is a leading airline company in the aviation industry, primarily offering passenger and cargo air transportation services. It focuses on both domestic and international markets, aiming to maintain a strong balance sheet and generate shareholder value through strategic capital allocation.

Average Trading Volume: 3,772,596

Technical Sentiment Signal: Hold

Current Market Cap: C$6.48B

For a thorough assessment of AC stock, go to TipRanks’ Stock Analysis page.

Disclaimer & Disclosure

Looking for a trading platform? Check out TipRanks' Best Online Brokers guide, and find the ideal broker for your trades.

Report an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App