AutoCanada Sells North City Honda to Streamline Operations

AutoCanada ( (TSE:ACQ) ) has shared an announcement.

AutoCanada Inc. has completed the sale of North City Honda in Chicago, Illinois, a move that aligns with the reclassification of some U.S. dealerships as discontinued operations. The sale, which generated $18.2 million in cash, will help reduce the company’s revolving credit facility. This strategic decision is expected to streamline AutoCanada’s operations and potentially improve its financial stability by focusing on more profitable segments.

The most recent analyst rating on (TSE:ACQ) stock is a Buy with a C$38.00 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.

AutoCanada’s overall stock score is primarily influenced by its financial challenges, including declining revenues and high leverage. However, the positive sentiment from the earnings call, highlighting cost savings and improved profitability, provides some optimism. The technical analysis shows bullish momentum, but overbought conditions suggest caution. The valuation remains weak due to negative earnings and lack of dividends.

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

More about AutoCanada

AutoCanada Inc. is a Canadian automobile dealership group operating 64 franchised dealerships across eight provinces in Canada, featuring 23 different brands including Acura, Audi, BMW, and Honda. The company also runs three independent used dealerships and 29 collision centers. Its U.S. operations, known as Leader Automotive Group, manage 13 franchised dealerships in Illinois, USA, selling brands like Audi, Hyundai, and Mercedes-Benz.

Average Trading Volume: 42,265

Technical Sentiment Signal: Buy

Current Market Cap: C$737.3M

See more insights into ACQ stock on TipRanks’ Stock Analysis page.