Air Canada (OTCMKTS:ACDVF) Shares Gap Down - Time to Sell?

Key Points

• Air Canada (ACDVF) gapped down at the open from $13.00 to $12.09 and last traded around $12.49, trading below its 50‑day moving average of $14.43.
• Analyst sentiment is mixed — three Buy ratings and five Holds result in a MarketBeat consensus of "Hold", with several recent upgrades and downgrades.
• Quarterly results showed an EPS beat ($0.47 vs. $0.20) but a sizable revenue miss ($4.19B vs. $5.56B); the balance sheet shows low liquidity (current ratio 0.56) and high leverage (debt/equity 3.32).

Air Canada (OTCMKTS:ACDVF - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $13.00, but opened at $12.09. Air Canada shares last traded at $12.4920, with a volume of 7,865 shares trading hands.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on ACDVF shares. Scotiabank reiterated an "outperform" rating on shares of Air Canada in a report on Tuesday, February 17th. UBS Group raised Air Canada to a "hold" rating in a research report on Tuesday, November 18th. Raymond James Financial cut Air Canada from a "moderate buy" rating to a "hold" rating in a report on Tuesday, February 17th. ATB Cormark Capital Markets lowered Air Canada from a "strong-buy" rating to a "moderate buy" rating in a research report on Monday, February 16th. Finally, Zacks Research upgraded Air Canada from a "strong sell" rating to a "hold" rating in a report on Tuesday, January 27th. Three investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold".

Air Canada Price Performance

The company has a current ratio of 0.56, a quick ratio of 0.53 and a debt-to-equity ratio of 3.32. The business's 50 day moving average price is $14.43 and its two-hundred day moving average price is $13.78. The stock has a market cap of $3.79 billion, a P/E ratio of 8.91, a price-to-earnings-growth ratio of 0.25 and a beta of 1.39.

Air Canada (OTCMKTS:ACDVF - Get Free Report) last released its quarterly earnings results on Thursday, February 12th. The company reported $0.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.20 by $0.27. The company had revenue of $4.19 billion during the quarter, compared to the consensus estimate of $5.56 billion. Air Canada had a net margin of 2.92% and a return on equity of 22.50%. As a group, sell-side analysts expect that Air Canada will post 1.66 earnings per share for the current fiscal year.

Air Canada Company Profile

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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