Junto Capital Management LP Acquires New Holdings in Delta Air Lines, Inc. $DAL

Key Points

• Junto Capital Management acquired 226,929 Delta Air Lines shares worth approximately $21.3 million, while institutional investors collectively own 69.93% of the company.
• Delta reported quarterly earnings of $1.56 per share, beating estimates by $0.07, and revenue rose 18.7% year over year to $17.67 billion. The company also increased its quarterly dividend to $0.215 per share.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus rating and an average price target of $99.84, although Delta insiders sold approximately $33.1 million of stock over the past 90 days.

Junto Capital Management LP acquired a new position in Delta Air Lines, Inc. (NYSE:DAL - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 226,929 shares of the transportation company's stock, valued at approximately $21,254,000.

Several other large investors have also recently bought and sold shares of DAL. Capital International Investors lifted its stake in shares of Delta Air Lines by 4.4% in the 4th quarter. Capital International Investors now owns 24,211,101 shares of the transportation company's stock worth $1,680,249,000 after acquiring an additional 1,012,265 shares during the period. State Street Corp raised its holdings in Delta Air Lines by 0.7% during the fourth quarter. State Street Corp now owns 23,163,644 shares of the transportation company's stock worth $1,607,557,000 after purchasing an additional 165,729 shares in the last quarter. California State Teachers Retirement System raised its holdings in Delta Air Lines by 8,578.7% during the second quarter. California State Teachers Retirement System now owns 18,516,676 shares of the transportation company's stock worth $1,734,272,000 after purchasing an additional 18,303,318 shares in the last quarter. Geode Capital Management LLC boosted its stake in Delta Air Lines by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 17,413,841 shares of the transportation company's stock valued at $1,215,766,000 after purchasing an additional 202,865 shares in the last quarter. Finally, Wellington Management Group LLP raised its stake in shares of Delta Air Lines by 137.4% in the 4th quarter. Wellington Management Group LLP now owns 13,811,787 shares of the transportation company's stock worth $958,538,000 after buying an additional 7,994,004 shares in the last quarter. Institutional investors and hedge funds own 69.93% of the company's stock.

Insider Transactions at Delta Air Lines

In other news, President Peter W. Carter sold 39,900 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $92.98, for a total value of $3,709,902.00. Following the completion of the sale, the president directly owned 424,704 shares of the company's stock, valued at $39,488,977.92. This represents a 8.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Edward H. Bastian sold 206,510 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $92.80, for a total transaction of $19,164,128.00. Following the sale, the chief executive officer owned 1,363,448 shares of the company's stock, valued at approximately $126,527,974.40. This represents a 13.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 356,726 shares of company stock worth $33,081,037. 0.80% of the stock is currently owned by company insiders.

Delta Air Lines Price Performance

DAL stock opened at $78.82 on Thursday. The company has a current ratio of 0.42, a quick ratio of 0.35 and a debt-to-equity ratio of 0.48. Delta Air Lines, Inc. has a one year low of $55.03 and a one year high of $95.68. The firm has a market capitalization of $51.83 billion, a PE ratio of 13.07, a P/E/G ratio of 1.09 and a beta of 1.29. The firm has a 50-day moving average of $85.75 and a two-hundred day moving average of $77.12.

Delta Air Lines (NYSE:DAL - Get Free Report) last released its earnings results on Thursday, July 9th. The transportation company reported $1.56 earnings per share for the quarter, topping the consensus estimate of $1.49 by $0.07. Delta Air Lines had a net margin of 5.79% and a return on equity of 17.52%. The business had revenue of $17.67 billion for the quarter, compared to the consensus estimate of $17.43 billion. During the same period last year, the firm posted $2.10 earnings per share. The firm's quarterly revenue was up 18.7% compared to the same quarter last year. On average, analysts forecast that Delta Air Lines, Inc. will post 6.23 earnings per share for the current year.

Delta Air Lines Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 30th. Investors of record on Thursday, July 9th were given a dividend of $0.215 per share. The ex-dividend date of this dividend was Thursday, July 9th. This is a positive change from Delta Air Lines's previous quarterly dividend of $0.19. This represents a $0.86 annualized dividend and a yield of 1.1%. Delta Air Lines's payout ratio is presently 14.26%.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on DAL shares. Benchmark reaffirmed a "buy" rating on shares of Delta Air Lines in a research note on Wednesday, July 8th. Wells Fargo & Company raised their price objective on shares of Delta Air Lines from $75.00 to $105.00 and gave the company an "overweight" rating in a research report on Tuesday, June 30th. Morgan Stanley lifted their price objective on shares of Delta Air Lines from $115.00 to $125.00 and gave the stock an "overweight" rating in a research note on Friday, July 10th. Sanford C. Bernstein reissued an "outperform" rating and set a $106.00 target price on shares of Delta Air Lines in a research note on Monday, July 13th. Finally, Weiss Ratings raised Delta Air Lines from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, July 21st. Twenty-three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $99.84.

More Delta Air Lines News

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

• Positive Sentiment: Delta announced a long-term strategic collaboration with Hyatt Hotels that will connect the Delta SkyMiles and World of Hyatt loyalty programs. Eligible elite members are expected to earn points across both programs, potentially increasing customer engagement, premium travel demand and valuable loyalty-related revenue. Hyatt Announces Long-Term Strategic Collaboration with Delta Air Lines
• Neutral Sentiment: Analyst opinions on Delta are described as mixed, indicating disagreement over the stock’s valuation and earnings outlook. This may limit buying interest until investors receive clearer evidence of improving profitability and demand trends. Analysts’ Opinions Are Mixed on Delta Air Lines
• Neutral Sentiment: United Airlines plans to suspend service on a route until March 2027 and offer refunds. The capacity reduction could modestly benefit Delta if it serves the same market, although the report does not establish a direct impact on Delta’s network. United Airlines to Exit Market Until March 2027
• Negative Sentiment: Democratic senators urged Delta to remain neutral in a union-organizing effort. Increased political attention or unionization could raise labor costs, reduce operating flexibility or create the risk of disruption, adding pressure to the stock’s outlook. Democratic Senators Urge Delta to Remain Neutral in Union Organizing Effort

About Delta Air Lines

Delta Air Lines, Inc is a major U.S. airline that provides scheduled passenger air transportation throughout the United States and to destinations across North America, Latin America, Europe, Asia, Africa and the Middle East. The company also offers air cargo services and operates a loyalty program, SkyMiles, along with related travel and customer services.

Headquartered in Atlanta, Georgia, Delta operates a network of domestic and international routes through hubs and focus cities that include Atlanta, Boston, Detroit, Los Angeles, Minneapolis–Saint Paul, New York, Salt Lake City and Seattle.

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