MDA Space (NYSE:MDA) Shares Gap Down – Time to Sell?

MDA Space Ltd. (NYSE:MDA)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $38.67, but opened at $35.63. MDA Space shares last traded at $36.15, with a volume of 1,989,445 shares changing hands.

MDA Space News Roundup

Here are the key news stories impacting MDA Space this week:

• Positive Sentiment: MDA Space said its planned acquisition of a majority interest in CLS could create a vertically integrated geointelligence leader, expand its global footprint, and potentially double recurring revenue over time.
• Positive Sentiment: The company expects CLS to be accretive to Adjusted EBITDA and Adjusted EPS within the first year of ownership, and to contribute positively to free cash flow as integration progresses.
• Neutral Sentiment: Analysts’ recent price targets remain well above the current trading range, with a reported median target around $56.50, suggesting some Street confidence in the company’s longer-term outlook.
• Negative Sentiment: MDA Space announced a bought-deal offering of 20 million common shares at US$35.60 each, raising about US$712 million and increasing dilution concerns for existing shareholders. Article title
• Negative Sentiment: Although the CLS deal is strategically attractive, investors may be wary of execution risk, regulatory approvals, and the cash funding burden tied to the acquisition and related debt needs. Article title

Wall Street Analysts Forecast Growth

MDA has been the subject of a number of research analyst reports. Canadian Imperial Bank of Commerce restated an “outperform” rating on shares of MDA Space in a report on Monday, June 22nd. ATB Cormark Capital Markets cut MDA Space from a “moderate buy” rating to a “hold” rating in a report on Friday, May 29th. JPMorgan Chase & Co. boosted their price target on MDA Space from $34.00 to $43.00 and gave the company an “overweight” rating in a research note on Thursday, May 14th. Zacks Research raised MDA Space from a “strong sell” rating to a “hold” rating in a report on Thursday, June 11th. Finally, Jefferies Financial Group upgraded MDA Space to a “strong-buy” rating in a research report on Wednesday, June 10th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $50.67.

MDA Space Stock Down 7.5%

The firm has a market cap of $4.97 billion and a P/E ratio of 127.75. The company’s 50-day moving average is $38.80.

MDA Space (NYSE:MDA) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.23 by $0.05.

About MDA Space

MDA Space Ltd is a developer and manufacturer of technology and services to the space industry. It is an international space mission partner and robotics, satellite systems, and geo-intelligence pioneer. It is engaged in communications satellites, Earth and space observation, space exploration, and infrastructure. The Company collaborates and partners with governments and space agencies, commercial space companies, and defence and aerospace prime contractors in the space industry. Geographically, it generates the majority of its revenue from Canada.