Delta Air Lines, Inc. $DAL Shares Purchased by Principal Financial Group Inc.

Key Points

• Principal Financial Group increased its Delta Air Lines stake by 2.5% in Q4, holding 720,421 shares worth about $50 million. Other hedge funds also adjusted their positions, and institutions own nearly 70% of Delta’s shares.
• Delta reported better-than-expected Q1 results, with EPS of $0.64 versus $0.61 expected and revenue of $14.2 billion, up 9.4% year over year. Analysts now expect the company to earn about 5.3 EPS this fiscal year.
• The stock has been supported by a recently raised price target from UBS to $95 and other bullish analyst commentary, while Delta also declared a quarterly dividend of $0.1875 per share. However, insiders have been selling shares, including a large recent sale by EVP John E. Laughter.

Principal Financial Group Inc. boosted its position in Delta Air Lines, Inc. (NYSE:DAL - Free Report) by 2.5% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 720,421 shares of the transportation company's stock after purchasing an additional 17,316 shares during the period. Principal Financial Group Inc. owned about 0.11% of Delta Air Lines worth $49,997,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also recently added to or reduced their stakes in the company. QRG Capital Management Inc. lifted its position in Delta Air Lines by 2.7% in the fourth quarter. QRG Capital Management Inc. now owns 137,775 shares of the transportation company's stock valued at $9,562,000 after purchasing an additional 3,647 shares during the period. Pinnacle Wealth Management Advisory Group LLC acquired a new stake in Delta Air Lines in the fourth quarter valued at about $373,000. Montag A & Associates Inc. lifted its position in Delta Air Lines by 9.4% in the fourth quarter. Montag A & Associates Inc. now owns 2,150 shares of the transportation company's stock valued at $149,000 after purchasing an additional 185 shares during the period. Greenfield Savings Bank lifted its position in Delta Air Lines by 10.3% in the fourth quarter. Greenfield Savings Bank now owns 10,060 shares of the transportation company's stock valued at $698,000 after purchasing an additional 942 shares during the period. Finally, Chung Wu Investment Group LLC lifted its position in Delta Air Lines by 802.0% in the fourth quarter. Chung Wu Investment Group LLC now owns 9,020 shares of the transportation company's stock valued at $626,000 after purchasing an additional 8,020 shares during the period. Institutional investors and hedge funds own 69.93% of the company's stock.

Delta Air Lines Price Performance

DAL stock opened at $73.31 on Friday. The firm has a 50 day moving average of $66.34 and a 200-day moving average of $66.29. Delta Air Lines, Inc. has a 12-month low of $45.28 and a 12-month high of $76.39. 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 company has a market cap of $48.16 billion, a price-to-earnings ratio of 10.69, a PEG ratio of 1.07 and a beta of 1.25.

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

Delta Air Lines Dividend Announcement

The firm also recently disclosed 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. This represents a $0.75 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, May 14th. Delta Air Lines's dividend payout ratio (DPR) is 10.93%.

Key Stories Impacting Delta Air Lines

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

• Positive Sentiment: UBS raised its price target on Delta to $95, highlighting confidence in the airline’s premium-cabin strategy and potential for stronger earnings per share, which can boost investor sentiment. UBS Just Hiked Delta Air Lines Price Target to $95: Premium Cabin Strategy Targets $13 EPS
• Positive Sentiment: Delta has outperformed since its last earnings report, suggesting the market is still rewarding the company’s recent quarterly results and outlook. Why Is Delta (DAL) Up 7.8% Since Last Earnings Report?
• Positive Sentiment: Airfare pricing across the industry is rising sharply after Spirit’s liquidation, which could support Delta’s revenue per seat if demand remains firm. Airfares skyrocket as much as 218% on Spirit Airlines' busiest routes within just 48 hours of its May 2 liquidation

Insider Buying and Selling at Delta Air Lines

In other news, EVP John E. Laughter sold 69,304 shares of the firm's stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $68.15, for a total transaction of $4,723,067.60. Following the completion of the transaction, the executive vice president directly owned 69,369 shares of the company's stock, valued at $4,727,497.35. This trade represents a 49.98% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Steven M. Sear sold 38,600 shares of the firm's stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $75.05, for a total transaction of $2,896,930.00. Following the transaction, the executive vice president directly owned 104,404 shares of the company's stock, valued at approximately $7,835,520.20. This trade represents a 26.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 278,737 shares of company stock valued at $19,868,268. Company insiders own 0.80% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently commented on DAL. Argus raised their price objective on shares of Delta Air Lines from $80.00 to $85.00 and gave the company a "buy" rating in a research report on Thursday, April 9th. Barclays lifted their price target on shares of Delta Air Lines from $65.00 to $85.00 and gave the company an "overweight" rating in a research report on Monday, January 12th. Citigroup lifted their price target on shares of Delta Air Lines from $77.00 to $79.00 and gave the company a "buy" rating in a research report on Thursday, April 9th. BNP Paribas Exane reduced their price target on shares of Delta Air Lines from $85.00 to $81.00 and set an "outperform" rating for the company in a research report on Tuesday, April 21st. Finally, Susquehanna reduced their price target on shares of Delta Air Lines from $81.00 to $78.00 and set a "positive" rating for the company in a research report on Thursday, April 9th. One investment 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 presently has an average rating of "Moderate Buy" and a consensus target price of $79.47.

Delta Air Lines Company 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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