ABC Arbitrage SA Makes New Investment in Delta Air Lines, Inc. $DAL

Key Points

• ABC Arbitrage SA opened a new position in Delta Air Lines during the fourth quarter, buying 21,265 shares worth about $1.476 million.
• Delta’s latest quarterly results beat expectations, with EPS of $0.64 versus $0.61 expected and revenue of $14.20 billion versus $14.05 billion projected. Revenue also rose 9.4% year over year.
• Analyst sentiment remains constructive despite mixed airline-sector pressure: Sanford C. Bernstein raised its target to $88 and kept an Outperform rating, while higher oil prices are creating near-term fuel-cost concerns for airlines like Delta.

ABC Arbitrage SA bought a new stake in shares of Delta Air Lines, Inc. (NYSE:DAL - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 21,265 shares of the transportation company's stock, valued at approximately $1,476,000.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Bank of New York Mellon Corp raised its stake in Delta Air Lines by 23.3% during the third quarter. Bank of New York Mellon Corp now owns 7,661,911 shares of the transportation company's stock valued at $434,813,000 after purchasing an additional 1,447,058 shares in the last quarter. Wellington Management Group LLP lifted its holdings in shares of Delta Air Lines by 54.8% in the 3rd quarter. Wellington Management Group LLP now owns 5,817,783 shares of the transportation company's stock valued at $330,159,000 after acquiring an additional 2,058,744 shares during the last quarter. LSV Asset Management grew its position in Delta Air Lines by 1.3% in the third quarter. LSV Asset Management now owns 3,447,917 shares of the transportation company's stock worth $195,669,000 after acquiring an additional 42,878 shares in the last quarter. Allianz Asset Management GmbH grew its position in Delta Air Lines by 24.6% in the third quarter. Allianz Asset Management GmbH now owns 2,791,581 shares of the transportation company's stock worth $158,422,000 after acquiring an additional 550,480 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its stake in Delta Air Lines by 1.8% during the third quarter. Russell Investments Group Ltd. now owns 2,655,412 shares of the transportation company's stock worth $150,735,000 after acquiring an additional 47,631 shares during the last quarter. 69.93% of the stock is owned by hedge funds and other institutional investors.

More Delta Air Lines News

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

• Positive Sentiment: Sanford C. Bernstein raised its price target on Delta Air Lines to $88 from $81 and reaffirmed an Outperform rating, citing Delta’s “fuel insulation” as a key advantage if oil prices stay elevated. Bernstein Hikes Delta Air Lines Price Target to $88 on Better Fuel Insulation
• Positive Sentiment: Delta continues to benefit from a constructive airline demand backdrop, with recent sector commentary pointing to stronger passenger demand and higher revenues across airlines, which can support pricing and earnings expectations for DAL. CPA to Report Q1 Earnings: What's in Store for the Stock?
• Neutral Sentiment: Delta’s recent business results and industry comparisons remain broadly supportive, but the articles provided do not include a new Delta earnings release or fresh company-specific operational update in the last day.
• Negative Sentiment: U.S. airline stocks fell after oil prices surged when President Trump rejected Iran’s latest peace proposal, raising concerns about higher fuel costs for carriers like Delta. US airline stocks slip as oil surges after Trump rejects Iran peace proposal
• Negative Sentiment: Another market update echoed that airline shares were weaker as energy prices jumped, reinforcing near-term margin pressure concerns for Delta and peers. U.S. Airline Stocks Fall as Oil Prices Jump Following Trump’s Rejection of Iran Proposal
• Negative Sentiment: Industry commentary also highlighted soaring fuel costs across airlines, which can pressure profitability if carriers cannot fully pass those costs on to travelers. Airlines Face Soaring Fuel Costs. Travelers Are Paying More for Bags, Extras.

Delta Air Lines Price Performance

Shares of DAL stock opened at $71.11 on Tuesday. Delta Air Lines, Inc. has a 52-week low of $45.28 and a 52-week high of $76.39. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.36 and a current ratio of 0.42. The firm has a market capitalization of $46.72 billion, a P/E ratio of 10.37, a P/E/G ratio of 1.08 and a beta of 1.25. The stock has a 50 day moving average price of $66.44 and a 200 day moving average price of $66.43.

Delta Air Lines (NYSE:DAL - Get Free Report) last announced its quarterly earnings data on Wednesday, April 8th. The transportation company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.61 by $0.03. The company had revenue of $14.20 billion for the quarter, compared to the consensus estimate of $14.05 billion. Delta Air Lines had a return on equity of 20.28% and a net margin of 6.87%.Delta Air Lines's quarterly revenue was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.46 EPS. As a group, sell-side analysts predict that Delta Air Lines, Inc. will post 5.3 earnings per share for the current year.

Delta Air Lines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Thursday, May 14th will be paid a dividend of $0.1875 per share. The ex-dividend date is Thursday, May 14th. This represents a $0.75 annualized dividend and a dividend yield of 1.1%. Delta Air Lines's dividend payout ratio (DPR) is currently 10.93%.

Insider Buying and Selling at Delta Air Lines

In other news, EVP John E. Laughter sold 69,304 shares of the business's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $68.15, for a total value of $4,723,067.60. Following the completion of the sale, the executive vice president owned 69,369 shares in the company, valued at approximately $4,727,497.35. The trade was a 49.98% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Alain Bellemare sold 20,621 shares of the business's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $72.75, for a total transaction of $1,500,177.75. Following the completion of the transaction, the executive vice president directly owned 120,025 shares of the company's stock, valued at $8,731,818.75. This trade represents a 14.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 204,925 shares of company stock valued at $14,323,395. Company insiders own 0.80% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on DAL shares. Susquehanna lowered their price objective on Delta Air Lines from $81.00 to $78.00 and set a "positive" rating for the company in a research note on Thursday, April 9th. Sanford C. Bernstein boosted their target price on Delta Air Lines from $81.00 to $88.00 and gave the company an "outperform" rating in a research report on Monday. Wolfe Research decreased their price target on Delta Air Lines from $81.00 to $73.00 and set an "outperform" rating on the stock in a report on Tuesday, April 7th. HSBC lowered their price target on Delta Air Lines from $80.20 to $79.30 and set a "buy" rating for the company in a research report on Thursday, April 9th. Finally, Zacks Research raised shares of Delta Air Lines from a "strong sell" rating to a "hold" rating in a research note on Wednesday, April 15th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $79.76.

Delta Air Lines Profile

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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