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

Key Points

• Shares gapped down at the open (from $13.63 to $13.00) and last traded around $13.76 on light volume (4,051), trading roughly in line with its 50- and 200-day moving averages (~$13.7).
• Analysts have a consensus rating of "Hold" (two Buys, seven Holds), with several recent downgrades from "strong‑buy" to "hold" or "moderate buy" by firms including Canaccord, Scotiabank and ATB Cormark.
• Operationally, Air Canada posted an EPS beat ($0.47 vs. $0.20 expected) but revenue missed ($4.19B vs. $5.56B expected); the company shows high leverage (debt-to-equity 3.32) and low liquidity (current ratio 0.56), with a market cap of ~$4.0B and PE ~9.6.

Air Canada (OTCMKTS:ACDVF - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $13.63, but opened at $13.00. Air Canada shares last traded at $13.76, with a volume of 4,051 shares trading hands.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Jefferies Financial Group reiterated a "hold" rating on shares of Air Canada in a report on Sunday, February 15th. Zacks Research upgraded Air Canada from a "strong sell" rating to a "hold" rating in a report on Tuesday, January 27th. Canaccord Genuity Group lowered Air Canada from a "strong-buy" rating to a "hold" rating in a report on Friday, March 13th. Scotiabank lowered Air Canada from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 10th. Finally, ATB Cormark Capital Markets lowered Air Canada from a "strong-buy" rating to a "moderate buy" rating in a report on Monday, February 16th. Two analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, Air Canada has a consensus rating of "Hold".

Air Canada Stock Up 0.3%

The company has a debt-to-equity ratio of 3.32, a current ratio of 0.56 and a quick ratio of 0.53. The stock has a market cap of $4.00 billion, a PE ratio of 9.60, a price-to-earnings-growth ratio of 0.51 and a beta of 1.42. The business has a fifty day moving average of $13.74 and a 200-day moving average of $13.67.

Air Canada (OTCMKTS:ACDVF - Get Free Report) last posted its earnings results on Thursday, February 12th. The company reported $0.47 earnings per share 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 analyst estimates of $5.56 billion. Air Canada had a return on equity of 22.50% and a net margin of 2.92%. Equities research analysts anticipate that Air Canada will post 1.66 earnings per share for the current 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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