Air Canada (OTCMKTS:ACDVF) Shares Gap Down - Should You Sell?

Key Points

• Air Canada shares fell 1.6%, opening at $16.00 versus a prior close of $16.91 and later trading at $15.87.
• Despite the decline, analyst sentiment remains favorable: six analysts rate the stock Buy and five Hold, resulting in a consensus “Moderate Buy” rating.
• Air Canada exceeded quarterly expectations, reporting $0.29 earnings per share versus the $0.11 consensus estimate and revenue of $4.41 billion, though its high debt-to-equity ratio of 3.52 highlights financial leverage.

Shares of Air Canada (OTCMKTS:ACDVF - Get Free Report) gapped down before the market opened on Monday. The stock had previously closed at $16.91, but opened at $16.00. Air Canada shares last traded at $15.87, with a volume of 272 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the stock. National Bank Financial reissued an "outperform" rating on shares of Air Canada in a research report on Wednesday, August 12th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Air Canada in a research report on Thursday, August 13th. Scotiabank reiterated an "outperform" rating on shares of Air Canada in a research note on Wednesday, August 19th. BMO Capital Markets reissued an "outperform" rating on shares of Air Canada in a report on Wednesday, August 12th. Finally, Canadian Imperial Bank of Commerce reissued an "outperform" rating on shares of Air Canada in a report on Friday, August 14th. Six equities research 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, the stock has a consensus rating of "Moderate Buy".

Air Canada Trading Down 1.6%

The company has a debt-to-equity ratio of 3.52, a current ratio of 0.60 and a quick ratio of 0.56. The business's fifty day simple moving average is $19.76 and its 200 day simple moving average is $16.82. The stock has a market cap of $4.01 billion, a price-to-earnings ratio of 15.56, a P/E/G ratio of 0.46 and a beta of 1.45.

Air Canada (OTCMKTS:ACDVF - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported $0.29 earnings per share for the quarter, topping 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 company had revenue of $4.41 billion for the quarter, compared to analysts' expectations of $4.34 billion. On average, research analysts predict that Air Canada will post 0.90 EPS for the current year.

About Air Canada

Air Canada is Canada's national flag carrier and one of the country's largest airlines. Headquartered in Montreal, Quebec, the company provides scheduled passenger air transportation to destinations across Canada, the United States, Europe, Asia-Pacific, Latin America and the Caribbean. Its network is supported by regional service operated under the Air Canada Express brand and leisure-focused flights operated by Air Canada Rouge.

The company's principal businesses include passenger airline services, air cargo transportation and vacation travel.

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