Deutsche Lufthansa (OTCMKTS:DLAKY) Sets New 1-Year Low - Here's Why

Key Points

• Deutsche Lufthansa shares fell to a new 52-week low of $7.83, below the prior close of $8.01, and remained well under their 50-day and 200-day moving averages.
• Analyst sentiment has deteriorated: Citigroup and Zacks Research downgraded the stock to “strong sell,” while five of seven analysts rate it a Sell, producing a consensus “Reduce” rating.
• The airline missed quarterly earnings expectations, reporting $0.13 in EPS versus the $0.34 consensus estimate, although revenue of $12.84 billion slightly exceeded forecasts.

Deutsche Lufthansa AG (OTCMKTS:DLAKY - Get Free Report) hit a new 52-week low during trading on Friday. The stock traded as low as $7.83 and last traded at $7.85, with a volume of 26,037 shares. The stock had previously closed at $8.01.

Analysts Set New Price Targets

A number of research analysts have issued reports on DLAKY shares. Citigroup lowered shares of Deutsche Lufthansa from a "hold" rating to a "strong sell" rating in a research report on Wednesday, July 8th. Zacks Research downgraded Deutsche Lufthansa from a "hold" rating to a "strong sell" rating in a report on Tuesday, September 1st. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, Deutsche Lufthansa presently has an average rating of "Reduce".

Deutsche Lufthansa Price Performance

The business's 50-day simple moving average is $8.74 and its two-hundred day simple moving average is $9.44. The company has a quick ratio of 0.78, a current ratio of 0.86 and a debt-to-equity ratio of 1.02. The stock has a market cap of $9.46 billion, a P/E ratio of 11.75, a price-to-earnings-growth ratio of 0.57 and a beta of 0.97.

Deutsche Lufthansa (OTCMKTS:DLAKY - Get Free Report) last announced its earnings results on Tuesday, August 4th. The transportation company reported $0.13 earnings per share for the quarter, missing analysts' consensus estimates of $0.34 by ($0.21). Deutsche Lufthansa had a return on equity of 5.74% and a net margin of 1.63%. The business had revenue of $12.84 billion during the quarter, compared to the consensus estimate of $12.76 billion. Sell-side analysts expect that Deutsche Lufthansa AG will post 0.93 EPS for the current year.

Hedge Funds Weigh In On Deutsche Lufthansa

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Fulton Bank N.A. purchased a new stake in Deutsche Lufthansa in the 2nd quarter worth about $120,000. GAMMA Investing LLC raised its position in shares of Deutsche Lufthansa by 52.1% in the second quarter. GAMMA Investing LLC now owns 13,943 shares of the transportation company's stock worth $159,000 after acquiring an additional 4,779 shares during the period. Finally, Sterling Capital Management LLC acquired a new stake in Deutsche Lufthansa in the 1st quarter valued at $204,000.

Deutsche Lufthansa Company Profile

Deutsche Lufthansa AG is a Germany-based aviation group and the parent company of the Lufthansa Group. Its principal business is the transportation of passengers and cargo through a portfolio of airlines serving domestic, European and international markets. The group's major passenger carriers include Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, Eurowings and Discover Airlines.

In addition to scheduled passenger flights, the Lufthansa Group provides air cargo services through Lufthansa Cargo and aircraft maintenance, repair and overhaul services through Lufthansa Technik.

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