Deutsche Lufthansa (OTCMKTS:DLAKY) Shares Gap Up on Strong Earnings

Key Points

• Deutsche Lufthansa shares rose 6.1%, opening at $8.88 after closing at $8.29, following quarterly earnings that exceeded expectations.
• The company reported EPS of $1.47, surpassing the consensus estimate of $0.82 by $0.65; net margin was 1.63% and return on equity was 5.74%.
• Despite the earnings beat, analyst sentiment remains weak: the stock carries an average “Reduce” rating, with five Sell ratings, one Hold, and one Strong Buy.

Deutsche Lufthansa AG (OTCMKTS:DLAKY - Get Free Report) gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $8.29, but opened at $8.88. Deutsche Lufthansa shares last traded at $8.7650, with a volume of 22,704 shares trading hands.

The transportation company reported $1.47 EPS for the quarter, beating the consensus estimate of $0.82 by $0.65. Deutsche Lufthansa had a net margin of 1.63% and a return on equity of 5.74%.

Analyst Upgrades and Downgrades

DLAKY has been the topic of a number of research analyst reports. Zacks Research downgraded Deutsche Lufthansa from a "hold" rating to a "strong sell" rating in a research report on Tuesday, September 1st. Citigroup cut Deutsche Lufthansa from a "hold" rating to a "strong sell" rating in a report on Wednesday, July 8th. One 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 data from MarketBeat, Deutsche Lufthansa presently has an average rating of "Reduce".

Institutional Investors Weigh In On Deutsche Lufthansa

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

Deutsche Lufthansa Stock Up 6.1%

The company has a market capitalization of $10.57 billion, a PE ratio of 13.13, a PEG ratio of 0.55 and a beta of 0.97. The company has a current ratio of 0.86, a quick ratio of 0.78 and a debt-to-equity ratio of 1.02. The business has a fifty day moving average of $8.59 and a 200 day moving average of $9.50.

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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