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:

• Investors Should Consider Stanley Druckenmiller's Moves in Airline Stocks

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