Air France-KLM (OTCMKTS:AFLYY) Shares Gap Down After Analyst Downgrade

Key Points

• Air France-KLM shares fell at the open after Kepler Capital Markets downgraded the stock from hold to reduce, with the price gapping down from $1.45 to $1.3750.
• Analyst sentiment is mixed but leans cautious: the stock now has a consensus rating of Hold, with three Buy ratings, five Hold ratings, and one Sell rating.
• The company recently missed earnings estimates, reporting EPS of -$0.13 versus expectations of -$0.05, while revenue matched forecasts at $8.77 billion.

Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report)'s share price gapped down prior to trading on Monday after Kepler Capital Markets downgraded the stock from a hold rating to a reduce rating. The stock had previously closed at $1.45, but opened at $1.3750. Air France-KLM shares last traded at $1.3750, with a volume of 700 shares trading hands.

A number of other research analysts have also weighed in on AFLYY. Morgan Stanley restated an "overweight" rating on shares of Air France-KLM in a report on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of Air France-KLM in a report on Monday, June 22nd. Finally, Zacks Research cut shares of Air France-KLM from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Three analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold".

Air France-KLM Stock Performance

The stock has a 50-day moving average of $1.34 and a 200 day moving average of $1.26. The stock has a market cap of $3.61 billion, a PE ratio of 2.12, a P/E/G ratio of 0.22 and a beta of 1.39. The company has a quick ratio of 0.66, a current ratio of 0.72 and a debt-to-equity ratio of 4.26.

Air France-KLM (OTCMKTS:AFLYY - Get Free Report) last issued its earnings results on Thursday, April 30th. The transportation company reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.08). Air France-KLM had a net margin of 4.77% and a return on equity of 71.16%. The company had revenue of $8.77 billion during the quarter, compared to analysts' expectations of $8.77 billion. Equities analysts predict that Air France-KLM SA will post 0.41 EPS for the current fiscal year.

About Air France-KLM

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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