Air France-KLM (OTCMKTS:AFLYY) Shares Gap Up - Still a Buy?

Key Points

• Air France-KLM shares opened higher, rising from a previous close of $1.25 to $1.30, though trading volume was very light at 130 shares.
• Analyst sentiment remains cautious: three analysts rate the stock a Buy and six rate it a Hold, resulting in a consensus “Hold” rating.
• The company beat quarterly expectations, reporting $0.07 earnings per share versus estimates of $0.05 and revenue of $10.67 billion versus $10.51 billion; however, its balance sheet shows high leverage, with a debt-to-equity ratio of 4.83.

Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $1.25, but opened at $1.30. Air France-KLM shares last traded at $1.30, with a volume of 130 shares traded.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Royal Bank Of Canada restated a "sector perform" rating on shares of Air France-KLM in a research note on Wednesday, August 5th. Morgan Stanley restated an "overweight" rating on shares of Air France-KLM in a research report on Wednesday, July 8th. 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 upgraded Air France-KLM from a "reduce" rating to a "hold" rating in a research note on Tuesday, August 25th. Three investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Air France-KLM currently has a consensus rating of "Hold".

Air France-KLM Stock Performance

The firm has a market cap of $3.34 billion, a price-to-earnings ratio of 2.70 and a beta of 1.39. The company has a fifty day moving average price of $1.34 and a two-hundred day moving average price of $1.26. The company has a debt-to-equity ratio of 4.83, a current ratio of 0.67 and a quick ratio of 0.61.

Air France-KLM (OTCMKTS:AFLYY - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The transportation company reported $0.07 earnings per share 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 analyst estimates of $10.51 billion. Air France-KLM had a return on equity of 44.05% and a net margin of 3.35%. As a group, equities research analysts expect that Air France-KLM SA will post 0.44 EPS for the current year.

Air France-KLM Company Profile

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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