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Summary
- Stocks of tour operator Transat AT Inc (TSX:TRZ) were up by about eight per cent on Thursday, May 20.
- The Toronto Stock Exchange (TSX)-listed scrips were trading at C$ 5.36 apiece on Thursday (12.25PM EST), having closed at C$ 4.98 on Wednesday.
- Transat secured C$ 700 million as emergency aid from the Canadian government last month.
Stocks of vertically integrated tour operator Transat AT Inc (TSX:TRZ) were up by about eight per cent on Thursday, May 20.
The Toronto Stock Exchange (TSX)-listed scrips were trading at C$ 5.36 apiece on Thursday (12.25PM EST), having closed at C$ 4.98 on Wednesday.
This spike came in the wake of speculations that a new bidder was looking into buying Transat. However, there has been no official announcements as of yet.
It was reported last week that media mogul Pierre Karl Péladeau was withdrawing his offer to buy the travel company. It is believed that Mr Péladeau, CEO of diversified media and telecommunications enterprise Quebecor Inc (TSX:QBR), had a fallout with Transat's main shareholder, Letko, Brosseau & Associates, over the company's valuation.
Mr Péladeau is said to have made an offer of C$ 5 per share, which Letko reportedly disagreed was the company's value.
On May 14, Transat issued a statement saying there was no formal communication from the media mogul and that a special committee of directors had reviewed his offer.
Notably, on April 29, Transat secured C$ 700 million as emergency aid from the Canadian government to stay afloat amid the ongoing coronavirus pandemic, which has particularly hampered the aviation and tourism sector.
The company reportedly took C$ 310 million to refund customers whose flights were cancelled during the pandemic, and another C$ 390 million for its operations and other expenses.
Transat AT (TSX:TRX) Stock Performance Q1 Financial Results
Transat stock dipped about nine per cent year-to-date (YTD). In the last one month, however, it has surged by 10.2 per cent.
On May 20, 2020, TRZ stock reached a 52-week high of C$ 7.89. Transat's market cap is about C$ 202 million and it holds a price-to-cash flow ratio of 1.6, as per TMX.
1-year chart of stock performance, volume and moving average of Transat AT (Source: EODHD/Others)
In Q1 2021, the company's revenues amounted to C$ 41.9 million and its adjusted operating loss was C$ 53.6 million. As of January 31, 2021, Transat’s cash and cash equivalents stood at C$ 302.8 million.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
