Air China (OTCMKTS:AIRYY) Shares Gap Up - Should You Buy?

Key Points

• Air China shares gapped up about 10.6%, opening at $13.30 from $12.03, although trading volume was light (~1,096 shares).
• Zacks recently downgraded the stock to a "strong sell" and the MarketBeat consensus rating is "Sell".
• Fundamentals look weak: quarterly EPS of ($0.61) missed the $0.09 estimate, the company has negative margins and ROE, low liquidity (current ratio 0.30) and high leverage (debt/equity 4.13), and the share price is below its 50- and 200-day moving averages.

Air China Ltd. (OTCMKTS:AIRYY - Get Free Report) shares gapped up before the market opened on Tuesday . The stock had previously closed at $12.0250, but opened at $13.30. Air China shares last traded at $13.30, with a volume of 1,096 shares.

Analysts Set New Price Targets

Separately, Zacks Research downgraded Air China from a "hold" rating to a "strong sell" rating in a research note on Friday, March 27th. One analyst has rated the stock with a Sell rating, According to MarketBeat, the company has a consensus rating of "Sell".

Air China Stock Up 10.6%

The company has a current ratio of 0.30, a quick ratio of 0.26 and a debt-to-equity ratio of 4.13. The firm has a market cap of $11.60 billion, a price-to-earnings ratio of -44.33 and a beta of -0.14. The firm has a 50-day moving average of $15.22 and a two-hundred day moving average of $16.05.

Air China (OTCMKTS:AIRYY - Get Free Report) last posted its quarterly earnings data on Friday, March 27th. The transportation company reported ($0.61) earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.70). Air China had a negative return on equity of 4.57% and a negative net margin of 1.05%.The business had revenue of $12.63 billion for the quarter, compared to analyst estimates of $12.63 billion.

About Air China

Air China Limited, trading on the OTCMKTS as AIRYY, is the flag carrier of the People's Republic of China and one of the country's major state-owned airlines. Established in 1988 following the restructuring of the Civil Aviation Administration of China (CAAC), Air China offers a broad range of air transportation services for passengers and cargo. Its core operations include scheduled domestic flights, international and regional routes, as well as charter services.

The airline operates a diverse fleet of Airbus and Boeing aircraft, serving more than 200 destinations across six continents.

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