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

Key Points

• Air France-KLM shares fell 3.3%, opening at $1.18 versus the prior close of $1.2444 and last trading at $1.16. The stock is below its 50-day and 200-day moving averages of $1.31 and $1.27, respectively.
• Analyst sentiment remains mixed but leans neutral: three analysts rate the stock a Buy and six rate it a Hold, resulting in a consensus “Hold” rating.
• The company exceeded quarterly expectations, reporting $0.07 in earnings per share versus the $0.05 consensus estimate and revenue of $10.67 billion versus $10.51 billion expected. However, its liquidity remains relatively weak, with a 0.67 current ratio and 4.83 debt-to-equity ratio.

Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report) gapped down prior to trading on Thursday. The stock had previously closed at $1.2444, but opened at $1.18. Air France-KLM shares last traded at $1.16, with a volume of 8,891 shares changing hands.

Analyst Ratings Changes

AFLYY has been the subject of a number of analyst reports. Morgan Stanley reaffirmed an "overweight" rating on shares of Air France-KLM in a report on Wednesday, July 8th. Kepler Capital Markets upgraded Air France-KLM from a "reduce" rating to a "hold" rating in a research report on Tuesday, August 25th. Citigroup reaffirmed a "neutral" rating on shares of Air France-KLM in a research note on Monday, August 3rd. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Air France-KLM in a report on Wednesday, August 5th. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of Air France-KLM in a research note on Monday, June 22nd. Three research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold".

Air France-KLM Trading Down 3.3%

The company's fifty day simple moving average is $1.31 and its two-hundred day simple moving average is $1.27. The company has a market capitalization of $3.05 billion, a price-to-earnings ratio of 2.47 and a beta of 1.46. The company has a quick ratio of 0.61, a current ratio of 0.67 and a debt-to-equity ratio of 4.83.

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

Air France-KLM Company Profile

Air France-KLM is a global airline group whose principal businesses include passenger air transportation, air cargo, aircraft maintenance, and related travel services. The group operates through well-known brands including Air France, KLM Royal Dutch Airlines, Transavia, and Air France Hop. Its services include scheduled international and domestic flights, leisure and low-cost air travel, freight transportation, aircraft engineering and maintenance, and the Flying Blue customer loyalty program.

The group was formed in 2004 through the combination of Air France and KLM.

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