Air France-KLM (OTCMKTS:AFLYY) Shares Gap Down - Time to Sell?

Key Points

• Air France-KLM shares fell 2.2%, opening at $1.33 after closing at $1.39, and last traded at $1.35 on relatively light volume.
• Analyst sentiment is broadly cautious: three analysts rate the stock a Buy and six rate it a Hold, resulting in a consensus “Hold” rating. Kepler recently upgraded the shares from “Reduce” to “Hold.”
• The company exceeded quarterly expectations, reporting $0.07 in earnings per share versus $0.05 expected and $10.67 billion in revenue versus $10.51 billion forecast. However, its high debt-to-equity ratio of 4.26 and weak liquidity ratios remain notable risks.

Shares of Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $1.39, but opened at $1.33. Air France-KLM shares last traded at $1.35, with a volume of 1,965 shares traded.

Analyst Upgrades and Downgrades

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

Air France-KLM Stock Down 2.2%

The company has a market capitalization of $3.57 billion, a price-to-earnings ratio of 2.89 and a beta of 1.40. The business's 50-day moving average is $1.40 and its 200-day moving average is $1.27. The company has a quick ratio of 0.66, a current ratio of 0.72 and a debt-to-equity ratio of 4.26.

Air France-KLM (OTCMKTS:AFLYY - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The transportation company reported $0.07 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.02. The company had revenue of $10.67 billion for the quarter, compared to the consensus estimate of $10.51 billion. Air France-KLM had a return on equity of 45.11% and a net margin of 3.35%. As a group, equities analysts predict that Air France-KLM SA will post 0.44 earnings per share for the current year.

About Air France-KLM

Air France-KLM is a leading European airline group formed in 2004 through the merger of France's flagship carrier Air France and the Netherlands' national airline KLM Royal Dutch Airlines. Headquartered in Paris and Amstelveen, the group provides passenger, cargo and maintenance services across a global network, connecting major hubs in Europe, North America, Asia, Africa and Latin America.

The company's primary business activities include scheduled passenger transport on short, medium and long-haul routes; air freight operations under Air France-KLM Cargo; and technical support and maintenance services through AFI KLM E&M.

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