Delta Air Lines Shares Decline After Price Target Cut by Analyst
Delta Air Lines, Inc. (NYSE:DAL) experienced a significant decline of 4.7% on Wednesday following a downgrade from UBS Group, which adjusted its price target for the stock from $90.00 to $77.00. Despite this downgrade, UBS Group continues to hold a buy rating on the stock. During trading, Delta Air Lines reached a low of $45.21 and was last seen trading at $44.50. Roughly 2,206,379 shares exchanged hands, marking a decline of 74% compared to the average daily volume of approximately 8,649,905 shares. The stock had previously closed at $46.68.
Delta Air Lines Updates:
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In addition to UBS Group's downgrade, other analysts have recently released reports on Delta Air Lines. For instance, Susquehanna raised its target price from $59.00 to $75.00 and issued a "positive" rating on January 7th. Similarly, Citigroup increased its target from $65.00 to $76.00, while Deutsche Bank raised its target from $60.00 to $80.00, both maintaining a buy rating. Jefferies Financial Group also raised its price target to $72.00, maintaining a buy rating. StockNews.com upgraded Delta Air Lines from a hold to a buy rating, showing strong confidence in the stock's potential. Overall, 14 analysts have rated the stock with a buy rating, with one identifying it as a strong buy. According to MarketBeat.com, the consensus rating for Delta Air Lines is "Buy" with an average price target of $76.60.
Insider Activity
Recent insider transactions have also occurred at Delta Air Lines. CEO Edward H. Bastian sold 91,710 shares on January 22nd at an average price of $69.85, totaling $6,405,943.50. Post-transaction, Bastian holds 439,819 shares valued at approximately $30,721,357.15, reflecting a 17.25% reduction in his ownership. Similarly, EVP Rahul D. Samant sold 17,970 shares on February 5th at an average price of $69.08, resulting in a total of $1,241,367.60. Following this sale, Samant now owns 35,889 shares valued at $2,479,212.12, marking a 33.36% decrease in his stake. In the past quarter, insiders sold a total of 162,886 shares worth $11,116,463, and currently, 0.96% of the stock is held by insiders.
Institutional Activity
Various institutional investors have adjusted their holdings in Delta Air Lines recently. Notably, KBC Group NV increased its stake by 143.7% in the third quarter, acquiring an additional 33,378 shares to hold 56,611 shares valued at approximately $2,876,000. Donoghue Forlines LLC purchased new shares worth about $2,036,000 in the last quarter. Additionally, New Millennium Group LLC raised its position significantly by 314% during the third quarter, acquiring 36,460 shares, which are now valued at $1,852,000. Geode Capital Management LLC increased its stake modestly, holding 15,501,936 shares valued at $789,452,000 after acquiring more shares. Overall, institutional and hedge fund investors own around 69.93% of the company's stock.
Stock Overview
Delta Air Lines has a market capitalization of $28.58 billion, with a PE ratio of 8.30 and a price-to-earnings growth ratio of 0.75. The company's debt-to-equity ratio stands at 0.92. The stock's recent performance shows a 50-day moving average of $63.19 and a 200-day moving average of $57.99. Delta Air Lines revealed its quarterly earnings on January 10th, reporting earnings per share of $1.85, which surpassed analyst expectations of $1.76. Revenue for the quarter was $15.56 billion, exceeding estimates of $14.20 billion and demonstrating a 9.4% increase year-over-year.
Dividend Announcement
Furthermore, Delta Air Lines has announced a quarterly dividend of $0.15 per share, scheduled for payment on March 20th. Shareholders recorded on February 27th will receive this dividend, which translates to an annualized yield of 1.36%. This payout represents a payout ratio of 11.26% for the company.
Company Overview
Delta Air Lines, Inc. provides scheduled transportation services for passengers and cargo, both domestically and internationally. The airline operates through two segments: Airline and Refinery. Its domestic network is centered around key hubs such as Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, along with coastal hubs in cities like Boston, Los Angeles, and New York. International operations are supported by hubs across major global cities.
Delta, Airlines, Stocks