Air Canada (OTCMKTS:ACDVF) Shares Gap Down - Time to Sell?

Key Points

• Air Canada shares gapped down sharply, opening at $16.84 versus a prior close of $20.47, before recovering to $18.95 in the latest trading cited.
• Analyst sentiment remains generally positive: six analysts rate the stock a Buy and five a Hold, resulting in a consensus rating of “Moderate Buy.”
• Air Canada exceeded quarterly expectations, reporting $0.29 in earnings per share versus a $0.11 estimate and revenue of $4.41 billion versus $4.34 billion expected, though its balance sheet shows elevated leverage with a debt-to-equity ratio of 3.52.

Shares of Air Canada (OTCMKTS:ACDVF - Get Free Report) gapped down before the market opened on Monday. The stock had previously closed at $20.47, but opened at $16.84. Air Canada shares last traded at $18.95, with a volume of 906 shares trading hands.

Analyst Upgrades and Downgrades

ACDVF has been the topic of several research reports. Scotiabank reiterated an "outperform" rating on shares of Air Canada in a research report on Wednesday, August 19th. Canadian Imperial Bank of Commerce restated an "outperform" rating on shares of Air Canada in a research report on Friday, August 14th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Air Canada in a research note on Thursday, August 13th. National Bank Financial reiterated an "outperform" rating on shares of Air Canada in a report on Wednesday, August 12th. Finally, BMO Capital Markets reissued an "outperform" rating on shares of Air Canada in a research note on Wednesday, August 12th. Six analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Air Canada presently has a consensus rating of "Moderate Buy".

Air Canada Stock Down 4.2%

The company has a market capitalization of $5.20 billion, a price-to-earnings ratio of 18.20, a price-to-earnings-growth ratio of 0.57 and a beta of 1.43. The company has a quick ratio of 0.56, a current ratio of 0.60 and a debt-to-equity ratio of 3.52. The business has a 50-day moving average price of $19.60 and a 200-day moving average price of $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 for the quarter, topping analysts' consensus estimates of $0.11 by $0.18. The firm had revenue of $4.41 billion for the quarter, compared to analysts' expectations of $4.34 billion. Air Canada had a return on equity of 20.11% and a net margin of 1.82%. As a group, equities analysts anticipate that Air Canada will post 0.88 earnings per share for the current fiscal 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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