Air Canada (OTCMKTS:ACDVF) Sees Significant Drop in Short Interest

Key Points

• Air Canada’s short interest fell 60.3% to 1.70 million shares as of September 15, representing approximately 0.6% of outstanding shares and 4.3 days to cover.
• Analyst sentiment remains positive, with six Buy ratings and five Holds giving the stock a consensus rating of “Moderate Buy.”
• Shares declined 4.2% to $18.56, while the company’s latest quarterly results exceeded expectations: EPS was $0.29 versus $0.11 forecast, and revenue reached $4.41 billion.

Air Canada (OTCMKTS:ACDVF - Get Free Report) was the target of a significant decline in short interest in September. As of September 15th, there was short interest totaling 1,704,534 shares, a decline of 60.3% from the August 31st total of 4,295,803 shares. Approximately 0.6% of the company's stock are short sold. Based on an average daily volume of 396,569 shares, the days-to-cover ratio is currently 4.3 days.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Jefferies Financial Group restated a "hold" rating on shares of Air Canada in a report on Thursday, August 13th. BMO Capital Markets reiterated an "outperform" rating on shares of Air Canada in a research note on Wednesday, August 12th. Royal Bank Of Canada reissued an "outperform" rating on shares of Air Canada in a research report on Thursday, August 13th. Scotiabank restated an "outperform" rating on shares of Air Canada in a research note on Wednesday, August 19th. Finally, Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating on shares of Air Canada in a report on Friday, August 14th. Six investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Air Canada currently has a consensus rating of "Moderate Buy".

Air Canada Stock Down 4.2%

Shares of ACDVF stock traded down $0.81 during trading hours on Monday, reaching $18.56. 4,469 shares of the company's stock were exchanged, compared to its average volume of 171,294. Air Canada has a 1 year low of $12.03 and a 1 year high of $22.52. The company has a current ratio of 0.60, a quick ratio of 0.56 and a debt-to-equity ratio of 3.52. The stock has a market cap of $5.20 billion, a PE ratio of 18.20, a PEG ratio of 0.57 and a beta of 1.43. The stock's fifty day moving average price is $19.60 and its two-hundred day moving average price is $16.45.

Air Canada (OTCMKTS:ACDVF - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $0.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.18. Air Canada had a net margin of 1.82% and a return on equity of 20.11%. The business had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.34 billion. Research analysts predict that Air Canada will post 0.88 EPS for the current year.

About Air Canada

Air Canada is Canada's flag carrier and the country's largest airline. The company provides scheduled passenger and cargo air transportation, serving destinations across Canada, the United States, Europe, Asia-Pacific, Latin America, the Caribbean and other international markets. Its principal hubs include Toronto, Montreal, Vancouver and Calgary.

Air Canada operates its mainline network alongside Air Canada Rouge, a leisure-focused carrier, and regional services provided through partner airlines under the Air Canada Express brand.

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