Delta Air Lines (NYSE:DAL) Trading Up 8.4% - Here's What Happened

Key Points

• Delta Air Lines' stock price surged by 8.4% in mid-day trading, reaching a high of $58.02, up from a previous close of $53.50, with a significant decline in trading volume.
• A number of analysts have upgraded their price targets for Delta Air Lines, with Barclays and Citigroup setting new targets of $65.00 and $65.50 respectively, indicating strong market confidence.
• The company recently announced an increase in its quarterly dividend to $0.1875, reflecting a commitment to returning value to shareholders amidst fluctuating earnings.

Delta Air Lines, Inc. (NYSE:DAL - Get Free Report)'s stock price rose 8.4% during mid-day trading on Tuesday . The company traded as high as $57.16 and last traded at $58.02. Approximately 4,117,391 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 10,807,099 shares. The stock had previously closed at $53.50.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on DAL shares. Raymond James Financial raised their price target on shares of Delta Air Lines from $60.00 to $68.00 in a research note on Friday, July 11th. JPMorgan Chase & Co. boosted their price objective on Delta Air Lines from $66.00 to $72.00 and gave the stock an "overweight" rating in a research note on Friday, July 11th. TD Cowen boosted their price target on shares of Delta Air Lines from $55.00 to $66.00 and gave the company a "buy" rating in a research report on Monday, July 14th. Susquehanna set a $65.00 target price on shares of Delta Air Lines and gave the company a "positive" rating in a report on Friday, July 11th. Finally, Wolfe Research upped their price objective on Delta Air Lines from $56.00 to $63.00 in a report on Monday, July 14th. Three equities research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, Delta Air Lines presently has a consensus rating of "Moderate Buy" and an average target price of $66.21.

Delta Air Lines Stock Performance

The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.33 and a current ratio of 0.38. The company has a market capitalization of $39.35 billion, a price-to-earnings ratio of 8.73, a P/E/G ratio of 1.84 and a beta of 1.56. The firm has a 50-day simple moving average of $52.64 and a two-hundred day simple moving average of $51.28.

Delta Air Lines (NYSE:DAL - Get Free Report) last released its earnings results on Thursday, July 10th. The transportation company reported $2.10 earnings per share for the quarter, topping analysts' consensus estimates of $2.01 by $0.09. The firm had revenue of $15,507,000 billion for the quarter, compared to analyst estimates of $16.16 billion. Delta Air Lines had a net margin of 7.24% and a return on equity of 24.86%. The business's quarterly revenue was down .1% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.36 earnings per share. On average, sell-side analysts anticipate that Delta Air Lines, Inc. will post 7.63 EPS for the current fiscal year.

Delta Air Lines Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, July 31st will be issued a $0.1875 dividend. This represents a $0.75 dividend on an annualized basis and a yield of 1.2%. This is a positive change from Delta Air Lines's previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Thursday, July 31st. Delta Air Lines's dividend payout ratio is currently 10.87%.

Insiders Place Their Bets

In related news, CEO Edward H. Bastian sold 35,000 shares of the firm's stock in a transaction that occurred on Wednesday, July 23rd. The stock was sold at an average price of $56.28, for a total transaction of $1,969,800.00. Following the transaction, the chief executive officer owned 632,823 shares in the company, valued at $35,615,278.44. This trade represents a 5.24% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Steven M. Sear sold 18,000 shares of Delta Air Lines stock in a transaction that occurred on Tuesday, July 15th. The stock was sold at an average price of $55.96, for a total value of $1,007,280.00. Following the transaction, the executive vice president directly owned 97,505 shares in the company, valued at approximately $5,456,379.80. This trade represents a 15.58% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 133,973 shares of company stock valued at $7,511,746. 0.88% of the stock is owned by company insiders.

Hedge Funds Weigh In On Delta Air Lines

A number of institutional investors have recently modified their holdings of DAL. Signature Resources Capital Management LLC purchased a new position in shares of Delta Air Lines in the 2nd quarter valued at approximately $25,000. Kayne Anderson Rudnick Investment Management LLC lifted its holdings in shares of Delta Air Lines by 414.4% during the fourth quarter. Kayne Anderson Rudnick Investment Management LLC now owns 535 shares of the transportation company's stock worth $32,000 after purchasing an additional 431 shares during the period. NewSquare Capital LLC lifted its holdings in shares of Delta Air Lines by 184.6% during the second quarter. NewSquare Capital LLC now owns 572 shares of the transportation company's stock worth $28,000 after purchasing an additional 371 shares during the period. Continuum Advisory LLC grew its position in Delta Air Lines by 44.2% in the 4th quarter. Continuum Advisory LLC now owns 584 shares of the transportation company's stock valued at $35,000 after buying an additional 179 shares during the last quarter. Finally, Activest Wealth Management increased its stake in Delta Air Lines by 2,280.8% in the 2nd quarter. Activest Wealth Management now owns 619 shares of the transportation company's stock valued at $30,000 after buying an additional 593 shares during the period. 69.93% of the stock is owned by institutional investors and hedge funds.

Delta Air Lines Company Profile

Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo.