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AutoCanada Sells Loss-Making U.S. Dealership to Reduce Debt

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AutoCanada Sells Loss-Making U.S. Dealership to Reduce Debt

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AutoCanada ( (TSE:ACQ) ) has provided an update.

AutoCanada Inc. has completed the sale of its Crystal Lake Chrysler Dodge Jeep Ram dealership in Illinois, which had been generating a loss. The sale, part of a previously announced agreement, brought in approximately $9.9 million, which will be used to reduce the company’s revolving credit facility. This move is likely to improve AutoCanada’s financial position by offloading a loss-making asset and reducing debt.

The most recent analyst rating on (TSE:ACQ) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on AutoCanada stock, see the TSE:ACQ Stock Forecast page.

Spark’s Take on TSE:ACQ Stock

According to Spark, TipRanks’ AI Analyst, TSE:ACQ is a Neutral.

The overall stock score is moderate, driven primarily by financial challenges and valuation concerns. However, positive technical momentum and strategic corporate events provide some support.

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

More about AutoCanada

AutoCanada Inc. is a multi-location North American automobile dealership group operating in both Canada and the United States. In Canada, it manages 64 franchised dealerships across eight provinces, offering 23 different vehicle brands, and operates additional used dealerships and collision centers. In the U.S., it operates as Leader Automotive Group with 16 franchised dealerships in Illinois, selling 11 vehicle brands.

Average Trading Volume: 37,774

Technical Sentiment Signal: Buy

Current Market Cap: C$636.6M

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

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