Air Canada (OTCMKTS:ACDVF) Shares Gap Up - Still a Buy?

Key Points

• Air Canada shares gapped higher, opening at $20.41 versus the prior close of $19.73, and last traded at $20.1560.
• Analyst sentiment is favorable: six analysts rate the stock Buy and five rate it Hold, resulting in a consensus “Moderate Buy” rating.
• The company exceeded quarterly expectations, reporting $0.29 in EPS versus $0.11 expected and revenue of $4.41 billion versus $4.34 billion projected, though its liquidity ratios remain low and debt-to-equity is elevated at 3.32.

Air Canada (OTCMKTS:ACDVF - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $19.73, but opened at $20.41. Air Canada shares last traded at $20.1560, with a volume of 700 shares trading hands.

Wall Street Analyst Weigh In

ACDVF has been the topic of several analyst reports. BMO Capital Markets restated an "outperform" rating on shares of Air Canada in a report on Wednesday, August 12th. National Bank Financial reissued an "outperform" rating on shares of Air Canada in a research report on Wednesday, August 12th. Zacks Research upgraded shares of Air Canada from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 19th. Scotiabank reaffirmed an "outperform" rating on shares of Air Canada in a report on Wednesday, August 19th. Finally, Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of Air Canada in a research note on Friday, August 14th. Six investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy".

Air Canada Price Performance

The company has a quick ratio of 0.53, a current ratio of 0.56 and a debt-to-equity ratio of 3.32. The company has a 50 day simple moving average of $18.51 and a 200-day simple moving average of $15.74. The stock has a market cap of $5.57 billion, a price-to-earnings ratio of 19.49, a PEG ratio of 0.58 and a beta of 1.42.

Air Canada (OTCMKTS:ACDVF - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported $0.29 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.18. The company had revenue of $4.41 billion during the quarter, compared to the consensus estimate of $4.34 billion. Air Canada had a return on equity of 21.51% and a net margin of 1.82%. As a group, research analysts anticipate that Air Canada will post 0.88 EPS for the current fiscal year.

Air Canada Company Profile

Air Canada is the largest airline in Canada and one of the leading carriers in North America. Founded in 1937 as Trans-Canada Air Lines and rebranded as Air Canada in 1965, the company operates scheduled passenger and cargo services on six continents. The airline maintains membership in the Star Alliance network, offering seamless connections and coordinated loyalty benefits to travelers worldwide.

Through its mainline operations and subsidiaries—including Air Canada Rouge, Air Canada Cargo and Air Canada Vacations—the company provides a broad range of services.

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