Delta Air Lines, Inc. (NYSE:DAL) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Delta Air Lines has a consensus analyst rating of “Moderate Buy”, with 24 of 27 brokerages recommending a buy and an average 12-month price target of about $93.60.
• The company’s recent earnings beat expectations, reporting $0.64 EPS on revenue of $14.20 billion, both ahead of estimates and up from the prior year’s quarter.
• Delta also raised its quarterly dividend to $0.215 per share, and the payout will be paid on July 30, implying an annualized dividend of $0.86 and a yield of about 1.0%.

Shares of Delta Air Lines, Inc. (NYSE:DAL - Get Free Report) have earned an average rating of "Moderate Buy" from the twenty-seven brokerages that are covering the firm, MarketBeat.com reports. Three investment analysts have rated the stock with a hold recommendation and twenty-four have given a buy recommendation to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $93.5958.

Several equities analysts have issued reports on the company. Raymond James Financial lowered Delta Air Lines from a "strong-buy" rating to an "outperform" rating and boosted their price target for the company from $80.00 to $104.00 in a research note on Monday. Evercore raised their price objective on shares of Delta Air Lines from $85.00 to $105.00 and gave the stock an "outperform" rating in a research report on Thursday, June 25th. Citigroup lifted their price objective on shares of Delta Air Lines from $79.00 to $106.00 and gave the company a "buy" rating in a research note on Monday, June 22nd. HSBC dropped their target price on shares of Delta Air Lines from $80.20 to $79.30 and set a "buy" rating on the stock in a research report on Thursday, April 9th. Finally, Seaport Research Partners increased their target price on shares of Delta Air Lines from $81.00 to $83.00 and gave the stock a "buy" rating in a research note on Thursday, April 9th.

Delta Air Lines Stock Performance

DAL stock opened at $87.39 on Thursday. The stock has a 50-day moving average price of $80.25 and a 200-day moving average price of $72.31. Delta Air Lines has a 1-year low of $49.83 and a 1-year high of $95.68. The company has a current ratio of 0.42, a quick ratio of 0.36 and a debt-to-equity ratio of 0.54. The firm has a market cap of $57.41 billion, a PE ratio of 12.74, a price-to-earnings-growth ratio of 1.27 and a beta of 1.29.

Delta Air Lines (NYSE:DAL - Get Free Report) last announced its earnings results on Wednesday, April 8th. The transportation company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.61 by $0.03. Delta Air Lines had a return on equity of 20.28% and a net margin of 6.87%.The company had revenue of $14.20 billion for the quarter, compared to analyst estimates of $14.05 billion. During the same quarter in the prior year, the company earned $0.46 EPS. The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities research analysts expect that Delta Air Lines will post 5.72 earnings per share for the current year.

Delta Air Lines Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 30th. Stockholders of record on Thursday, July 9th will be given a dividend of $0.215 per share. This is a boost from Delta Air Lines's previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, July 9th. This represents a $0.86 dividend on an annualized basis and a dividend yield of 1.0%. Delta Air Lines's payout ratio is currently 10.93%.

Delta Air Lines News Summary

Here are the key news stories impacting Delta Air Lines this week:

• Positive Sentiment: Delta announced new “Basic Business” fares, expanding its premium-cabin pricing strategy with a lower-cost option that could help fill seats while preserving some pricing power. Delta launches 'basic business' fares without lounge access, seat selection
• Positive Sentiment: UBS said Delta’s second-quarter results should come in slightly above the top end of guidance, but noted the bigger catalyst will be management’s outlook for the third quarter and full year. Delta Air Lines outlook seen as key driver of Q2 earnings reaction, UBS says
• Positive Sentiment: Susquehanna raised its price target on Delta and maintained a positive view, reflecting continued optimism around the airline’s earnings power and premium positioning. Susquehanna Boosts Delta Air Lines NYSE: DAL Price Target to $108.00
• Neutral Sentiment: Delta’s stock is near recent highs and has had a sharp rally this year, so investors may be demanding strong Q3 guidance and not just an earnings beat to justify further upside. Delta Air Lines (DAL) Stock Near Highs Ahead of Q2 Earnings: Buy, Hold, or Sell?
• Negative Sentiment: Rising crude prices are pressuring airline stocks, including DAL, because higher jet-fuel costs can squeeze margins if fares do not rise enough to offset the increase. Delta Stock Faces Fuel-Cost Headwinds Following US Military Strikes Against Iran

Insider Activity

In other Delta Air Lines news, EVP John E. Laughter sold 15,000 shares of the stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $71.61, for a total value of $1,074,150.00. Following the transaction, the executive vice president owned 54,369 shares in the company, valued at approximately $3,893,364.09. This represents a 21.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Allison C. Ausband sold 5,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $79.00, for a total value of $395,000.00. Following the completion of the transaction, the executive vice president owned 133,854 shares in the company, valued at approximately $10,574,466. The trade was a 3.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 149,635 shares of company stock worth $10,833,855 in the last three months. Company insiders own 0.80% of the company's stock.

Institutional Investors Weigh In On Delta Air Lines

Several hedge funds and other institutional investors have recently modified their holdings of the company. Brighton Jones LLC increased its stake in Delta Air Lines by 33.5% during the 4th quarter. Brighton Jones LLC now owns 9,174 shares of the transportation company's stock valued at $555,000 after purchasing an additional 2,302 shares in the last quarter. Acadian Asset Management LLC bought a new position in shares of Delta Air Lines in the first quarter valued at $178,000. Sivia Capital Partners LLC acquired a new position in shares of Delta Air Lines during the second quarter valued at about $555,000. Marshall Wace LLP increased its position in shares of Delta Air Lines by 102.2% during the second quarter. Marshall Wace LLP now owns 7,825 shares of the transportation company's stock worth $385,000 after acquiring an additional 357,825 shares in the last quarter. Finally, Daiwa Securities Group Inc. raised its holdings in shares of Delta Air Lines by 10.6% in the 2nd quarter. Daiwa Securities Group Inc. now owns 58,129 shares of the transportation company's stock worth $2,859,000 after acquiring an additional 5,564 shares during the last quarter. Institutional investors own 69.93% of the company's stock.

About Delta Air Lines

Delta Air Lines is a major U.S.-based global airline that provides scheduled passenger and cargo air transportation, aircraft maintenance and repair services, and related travel products. Its operations include mainline domestic and international passenger services, a branded regional network operating under the Delta Connection name, dedicated air cargo carriage, and in-house maintenance, repair and overhaul through Delta TechOps. Delta offers a range of cabin products for different customer segments, including premium business-class service on long-haul routes and tiered economy offerings on domestic and international flights, and it markets customer loyalty benefits through the SkyMiles frequent-flyer program.

The carrier operates a mixed fleet of narrow- and wide-body aircraft from multiple U.S.

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