Air Canada (OTCMKTS:ACDVF) Shares Gap Down - Here's What Happened

Key Points

• Shares gapped down pre-market — Air Canada opened at $14.17 after a $15.14 close but later traded back near $15.19 on a volume of 17,147 shares.
• Analyst consensus is "Hold" — 2 Buys, 4 Holds and 1 Sell, with recent rating moves including UBS to Hold, Scotiabank and BMO maintaining Outperform, and Zacks upgrading from Strong Sell to Hold.
• Financials show liquidity and leverage concerns: current ratio 0.59, debt-to-equity 3.99 and a negative P/E (-27.52); the most recent quarter missed EPS ( $0.55 vs $0.56 est.) and revenue ($4.15B vs $5.54B est.), with a -1.3% net margin.

Air Canada (OTCMKTS:ACDVF - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $15.14, but opened at $14.17. Air Canada shares last traded at $15.19, with a volume of 17,147 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. UBS Group raised shares of Air Canada to a "hold" rating in a report on Tuesday, November 18th. Scotiabank reaffirmed an "outperform" rating on shares of Air Canada in a research report on Wednesday, January 21st. Zacks Research raised shares of Air Canada from a "strong sell" rating to a "hold" rating in a report on Tuesday, January 27th. Finally, BMO Capital Markets reiterated an "outperform" rating on shares of Air Canada in a research report on Thursday, October 9th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Air Canada presently has a consensus rating of "Hold".

Air Canada Trading Up 1.8%

The company has a current ratio of 0.59, a quick ratio of 0.56 and a debt-to-equity ratio of 3.99. The stock has a market capitalization of $4.54 billion, a price-to-earnings ratio of -27.52 and a beta of 1.44. The firm has a 50-day moving average of $13.96 and a 200 day moving average of $13.74.

Air Canada (OTCMKTS:ACDVF - Get Free Report) last announced its quarterly earnings results on Tuesday, November 4th. The company reported $0.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.56 by ($0.01). The business had revenue of $4.15 billion for the quarter, compared to analyst estimates of $5.54 billion. Air Canada had a positive return on equity of 18.22% and a negative net margin of 1.30%. As a group, equities analysts predict that Air Canada will post 1.66 EPS for the current fiscal year.

About Air Canada

Air Canada is the largest airline in Canada and one of the leading carriers in North America. Founded in 1937 as Trans-Canada Air Lines and rebranded as Air Canada in 1965, the company operates scheduled passenger and cargo services on six continents. The airline maintains membership in the Star Alliance network, offering seamless connections and coordinated loyalty benefits to travelers worldwide.

Through its mainline operations and subsidiaries—including Air Canada Rouge, Air Canada Cargo and Air Canada Vacations—the company provides a broad range of services.

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