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

Key Points

• Shares gapped down before the open, opening at $12.90 after a prior close of $13.60 and last trading at $13.26 on light volume (1,645 shares).
• Multiple sell‑side downgrades have pushed sentiment toward neutral — Zacks cut to a "strong sell" and the consensus rating is "Hold" (2 Buy, 6 Hold, 1 Sell).
• Air Canada beat EPS estimates ($0.47 vs. $0.20) but missed revenue ($4.19B vs. $5.56B), and shows high leverage with a debt‑to‑equity of 3.32 and low liquidity ratios.

Shares of Air Canada (OTCMKTS:ACDVF - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $13.60, but opened at $12.90. Air Canada shares last traded at $13.26, with a volume of 1,645 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts recently commented on ACDVF shares. Zacks Research downgraded shares of Air Canada from a "hold" rating to a "strong sell" rating in a research report on Monday, April 20th. ATB Cormark Capital Markets downgraded shares of Air Canada from a "strong-buy" rating to a "moderate buy" rating in a research report on Monday, February 16th. Raymond James Financial downgraded shares of Air Canada from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, February 17th. Jefferies Financial Group reissued a "hold" rating on shares of Air Canada in a research report on Sunday, February 15th. Finally, Scotiabank downgraded shares of Air Canada from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 10th. Two research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold".

Air Canada Trading Down 0.7%

The company has a debt-to-equity ratio of 3.32, a quick ratio of 0.53 and a current ratio of 0.56. The company has a market capitalization of $3.76 billion, a PE ratio of 9.04, a PEG ratio of 0.61 and a beta of 1.42. The stock has a fifty day moving average of $13.56 and a 200 day moving average of $13.69.

Air Canada (OTCMKTS:ACDVF - Get Free Report) last posted its quarterly earnings results on Thursday, February 12th. The company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.27. Air Canada had a return on equity of 22.50% and a net margin of 2.92%.The business had revenue of $4.19 billion during the quarter, compared to the consensus estimate of $5.56 billion. As a group, sell-side analysts predict that Air Canada will post 0.72 earnings per share 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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