Delta Air Lines Sees Unusually High Options Volume (NYSE:DAL)

Key Points

• Options activity surged: Traders bought 51,609 Delta call options, 82% above the stock’s average daily call volume.
• Shares declined 1.1% to $80.27, despite the company beating quarterly earnings and revenue estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $99.84.
• Insiders sold heavily: Executives sold 356,726 shares worth approximately $33.1 million over the past three months, while Delta increased its quarterly dividend to $0.215 per share.

Delta Air Lines, Inc. (NYSE:DAL - Get Free Report) saw unusually large options trading activity on Friday. Traders bought 51,609 call options on the stock. This is an increase of 82% compared to the average daily volume of 28,314 call options.

Insider Buying and Selling at Delta Air Lines

In other news, EVP Steven M. Sear sold 40,460 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $93.55, for a total value of $3,785,033.00. Following the sale, the executive vice president owned 104,404 shares of the company's stock, valued at approximately $9,766,994.20. This represents a 27.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Edward H. Bastian sold 206,510 shares of Delta Air Lines stock in a transaction dated 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 transaction, the chief executive officer directly 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 356,726 shares of company stock valued at $33,081,037. Insiders own 0.80% of the company's stock.

Institutional Investors Weigh In On Delta Air Lines

A number of institutional investors have recently added to or reduced their stakes in DAL. Arlington Trust Co LLC lifted its position in shares of Delta Air Lines by 11.7% during the second quarter. Arlington Trust Co LLC now owns 1,238 shares of the transportation company's stock valued at $116,000 after buying an additional 130 shares during the last quarter. Guardian Wealth Advisors LLC NC lifted its position in Delta Air Lines by 3.5% during the second quarter. Guardian Wealth Advisors LLC NC now owns 3,900 shares of the transportation company's stock valued at $365,000 after acquiring an additional 131 shares during the last quarter. IFM Investors Pty Ltd boosted its stake in Delta Air Lines by 0.5% in the fourth quarter. IFM Investors Pty Ltd now owns 28,167 shares of the transportation company's stock valued at $1,955,000 after acquiring an additional 144 shares in the last quarter. Utah Retirement Systems grew its holdings in Delta Air Lines by 0.3% in the fourth quarter. Utah Retirement Systems now owns 52,620 shares of the transportation company's stock worth $3,652,000 after purchasing an additional 144 shares during the last quarter. Finally, HBK Sorce Advisory LLC increased its position in shares of Delta Air Lines by 2.6% during the fourth quarter. HBK Sorce Advisory LLC now owns 6,022 shares of the transportation company's stock worth $454,000 after purchasing an additional 151 shares in the last quarter. Institutional investors own 69.93% of the company's stock.

Delta Air Lines Stock Down 1.1%

NYSE:DAL traded down $0.87 during mid-day trading on Friday, reaching $80.27. The company's stock had a trading volume of 2,172,191 shares, compared to its average volume of 8,844,018. The company has a quick ratio of 0.35, a current ratio of 0.42 and a debt-to-equity ratio of 0.48. Delta Air Lines has a 1 year low of $55.03 and a 1 year high of $95.68. The stock has a fifty day moving average of $87.81 and a 200-day moving average of $76.61. The firm has a market capitalization of $52.79 billion, a PE ratio of 13.31, a price-to-earnings-growth ratio of 1.15 and a beta of 1.31.

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

Delta Air Lines Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, July 30th. Stockholders of record on Thursday, July 9th were given a $0.215 dividend. This represents a $0.86 annualized dividend and a dividend yield of 1.1%. 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. Delta Air Lines's dividend payout ratio is presently 14.26%.

Analyst Ratings Changes

DAL has been the subject of a number of research analyst reports. The Goldman Sachs Group reissued a "buy" rating on shares of Delta Air Lines in a research note on Monday, August 3rd. Susquehanna increased their target price on Delta Air Lines from $78.00 to $108.00 and gave the stock a "positive" rating in a research note on Tuesday, July 7th. Bank of America boosted their target price on shares of Delta Air Lines from $93.00 to $100.00 and gave the company a "buy" rating in a research note on Wednesday, July 1st. Raymond James Financial cut their price target on shares of Delta Air Lines from $104.00 to $98.00 and set an "outperform" rating on the stock in a report on Monday. Finally, Citigroup raised their price target on shares of Delta Air Lines from $106.00 to $110.00 and gave the stock a "buy" rating in a research note on Sunday, July 12th. 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, Delta Air Lines presently has a consensus rating of "Moderate Buy" and an average target price of $99.84.

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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