Air France-KLM (OTCMKTS:AFLYY) Shares Gap Down - Here's Why

Key Points

• Air France-KLM shares gapped down from a previous close of $1.34 to open and trade at $1.2640, though volume was very light at 210 shares.
• Analyst sentiment remains cautious: three analysts rate the stock a Buy and six rate it a Hold, producing an overall MarketBeat rating of “Hold.”
• The airline exceeded quarterly expectations, reporting $0.07 EPS versus $0.05 expected and revenue of $10.67 billion versus $10.51 billion estimated. However, its balance sheet shows high leverage, with a debt-to-equity ratio of 4.83 and current ratio of 0.67.

Shares of Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $1.34, but opened at $1.2640. Air France-KLM shares last traded at $1.2640, with a volume of 210 shares traded.

Analysts Set New Price Targets

A number of equities analysts recently commented on AFLYY shares. Morgan Stanley reissued an "overweight" rating on shares of Air France-KLM in a research note on Wednesday, July 8th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Air France-KLM in a research note on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of Air France-KLM in a report on Monday, June 22nd. Citigroup reiterated a "neutral" rating on shares of Air France-KLM in a research report on Monday, August 3rd. Finally, Kepler Capital Markets raised shares of Air France-KLM from a "reduce" rating to a "hold" rating in a report on Tuesday, August 25th. Three research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, Air France-KLM presently has an average rating of "Hold".

Air France-KLM Price Performance

The company has a current ratio of 0.67, a quick ratio of 0.61 and a debt-to-equity ratio of 4.83. The firm's 50-day moving average price is $1.33 and its 200-day moving average price is $1.26. The stock has a market capitalization of $3.30 billion, a PE ratio of 2.67 and a beta of 1.39.

Air France-KLM (OTCMKTS:AFLYY - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The transportation company reported $0.07 EPS for the quarter, topping the consensus estimate of $0.05 by $0.02. Air France-KLM had a return on equity of 44.05% and a net margin of 3.35%.The company had revenue of $10.67 billion during the quarter, compared to analyst estimates of $10.51 billion. On average, equities analysts forecast that Air France-KLM SA will post 0.44 EPS for the current fiscal year.

About Air France-KLM

Air France-KLM is a European airline group formed in 2004 through the merger of Air France and KLM Royal Dutch Airlines. The group operates passenger and cargo air transportation through its principal airline brands, Air France and KLM, along with low-cost carrier Transavia. Its airlines serve domestic, European and long-haul international routes linking Europe with destinations across North America, Latin America, Asia, Africa and the Middle East.

Air France is based in France and operates major hubs at Paris-Charles de Gaulle and Paris-Orly airports, while KLM is headquartered in the Netherlands and uses Amsterdam Airport Schiphol as its primary hub.

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