Air France-KLM (OTCMKTS:AFLYY) Shares Down 7.4% - Time to Sell?

Key Points

• Shares fell 7.4% in mid-day trading to $1.12 on Tuesday with volume ~52% above average, after closing the prior session at $1.21.
• Wall Street consensus is an average "Hold" (two Buy ratings and six Hold ratings) with mixed recent analyst moves including upgrades and downgrades.
• The company reported an earnings beat (EPS $0.23 vs. $0.04 expected and revenue $9.53B vs. $9.43B) but shows financial risks with a very low P/E of 1.70, high debt-to-equity of 5.39 and weak liquidity (current ratio 0.62).

Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report) shares traded down 7.4% during mid-day trading on Tuesday . The stock traded as low as $1.12 and last traded at $1.12. 217,939 shares traded hands during mid-day trading, an increase of 52% from the average session volume of 143,801 shares. The stock had previously closed at $1.21.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Zacks Research cut Air France-KLM from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Citigroup reiterated a "neutral" rating on shares of Air France-KLM in a research note on Friday, February 20th. Oddo Bhf upgraded Air France-KLM from a "neutral" rating to an "outperform" rating in a research note on Friday, February 6th. Barclays upgraded Air France-KLM from an "underweight" rating to an "equal weight" rating in a research note on Monday, March 9th. Finally, Royal Bank Of Canada assumed coverage on Air France-KLM in a research note on Tuesday, January 20th. They issued a "hold" rating for the company. Two research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold".

Air France-KLM Stock Performance

The firm has a 50 day moving average of $1.20 and a two-hundred day moving average of $1.24. The stock has a market cap of $2.94 billion, a PE ratio of 1.70, a PEG ratio of 0.18 and a beta of 1.36. The company has a debt-to-equity ratio of 5.39, a current ratio of 0.62 and a quick ratio of 0.56.

Air France-KLM (OTCMKTS:AFLYY - Get Free Report) last posted its earnings results on Thursday, February 19th. The transportation company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.19. The firm had revenue of $9.53 billion during the quarter, compared to analysts' expectations of $9.43 billion. Air France-KLM had a return on equity of 100.70% and a net margin of 5.00%. Research analysts predict that Air France-KLM SA will post 0.46 EPS for the current fiscal year.

Air France-KLM Company Profile

Air France-KLM is a leading European airline group formed in 2004 through the merger of France's flagship carrier Air France and the Netherlands' national airline KLM Royal Dutch Airlines. Headquartered in Paris and Amstelveen, the group provides passenger, cargo and maintenance services across a global network, connecting major hubs in Europe, North America, Asia, Africa and Latin America.

The company's primary business activities include scheduled passenger transport on short, medium and long-haul routes; air freight operations under Air France-KLM Cargo; and technical support and maintenance services through AFI KLM E&M.

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