Delta Air Lines Inc. (DAL) Downgraded by Zacks Investment Research
Delta Air Lines Inc. (NYSE:DAL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Delta reported better-than-expected earnings per share but weaker-than-expected revenues in the third quarter of 2016. However, both metrics declined on a year-over-year basis. The power outage suffered by the company in August hurt results significantly. The company continues to struggle with unit revenue issues. Passenger unit revenues declined 6.8% in the third quarter. The metric is projected to decrease in the band of 3–5% in the fourth quarter. Passenger mile yield fell 5.3% in the third quarter. However, the capacity growth guidance for 2017 is encouraging. Capacity is projected to expand 1% next year, in line with the projection for the fourth quarter. We are also impressed by Delta’s efforts to enhance its shareholders‘ wealth through dividends and share buybacks. During the third quarter, the carrier returned $650 million to its shareholders.”
A number of other analysts also recently commented on the company. Argus increased their price target on Delta Air Lines to $48.00 in a research report on Monday. Imperial Capital increased their price target on Delta Air Lines from $41.00 to $44.00 and gave the company an “in-line” rating in a research report on Friday. Vetr downgraded Delta Air Lines from a “buy” rating to a “hold” rating and set a $40.40 price target for the company. in a research report on Thursday, October 13th. Sanford C. Bernstein assumed coverage on Delta Air Lines in a research report on Tuesday, October 11th. They set a “market perform” rating and a $43.00 price target for the company. Finally, Bank of America Corp. set a $60.00 price target on Delta Air Lines and gave the company a “buy” rating in a research report on Tuesday, October 4th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and fifteen have issued a buy rating to the stock. Delta Air Lines currently has an average rating of “Buy” and an average price target of $52.46.
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Delta Air Lines (NYSE:DAL) opened at 39.80 on Tuesday. The firm has a market capitalization of $30.17 billion, a PE ratio of 6.48 and a beta of 0.95. Delta Air Lines has a one year low of $32.60 and a one year high of $52.77. The firm has a 50-day moving average price of $38.47 and a 200 day moving average price of $40.14.
Delta Air Lines (NYSE:DAL) last issued its quarterly earnings results on Thursday, October 13th. The company reported $1.70 EPS for the quarter, beating the Zacks’ consensus estimate of $1.65 by $0.05. The company earned $10.48 billion during the quarter. Delta Air Lines had a return on equity of 37.39% and a net margin of 11.92%. The business’s revenue was down 5.6% compared to the same quarter last year. During the same period in the previous year, the business posted $1.74 earnings per share. Analysts anticipate that Delta Air Lines will post $5.70 EPS for the current fiscal year.
In other Delta Air Lines news, EVP Steven M. Sear sold 4,670 shares of the firm’s stock in a transaction dated Tuesday, August 30th. The stock was sold at an average price of $37.18, for a total transaction of $173,630.60. Following the sale, the executive vice president now owns 52,173 shares in the company, valued at $1,939,792.14. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Steven M. Sear sold 4,671 shares of the firm’s stock in a transaction dated Wednesday, October 5th. The shares were sold at an average price of $40.16, for a total value of $187,587.36. Following the sale, the insider now owns 52,174 shares in the company, valued at approximately $2,095,307.84. The disclosure for this sale can be found here. Company insiders own 0.75% of the company’s stock.
Large investors have recently added to or reduced their stakes in the stock. Public Employees Retirement Association of Colorado increased its position in Delta Air Lines by 30.0% in the second quarter. Public Employees Retirement Association of Colorado now owns 1,217,335 shares of the company’s stock valued at $44,348,000 after buying an additional 281,253 shares in the last quarter. Anchor Bolt Capital LP increased its position in Delta Air Lines by 11.6% in the first quarter. Anchor Bolt Capital LP now owns 3,508,770 shares of the company’s stock valued at $170,807,000 after buying an additional 365,249 shares in the last quarter. Strs Ohio increased its position in Delta Air Lines by 38.8% in the second quarter. Strs Ohio now owns 1,975,080 shares of the company’s stock valued at $71,952,000 after buying an additional 551,720 shares in the last quarter. Goldentree Asset Management LP increased its position in Delta Air Lines by 29.5% in the first quarter. Goldentree Asset Management LP now owns 468,465 shares of the company’s stock valued at $22,805,000 after buying an additional 106,645 shares in the last quarter. Finally, First Pacific Advisors LLC increased its position in Delta Air Lines by 45.7% in the second quarter. First Pacific Advisors LLC now owns 117,800 shares of the company’s stock valued at $4,291,000 after buying an additional 36,950 shares in the last quarter. Institutional investors and hedge funds own 84.49% of the company’s stock.
About Delta Air Lines
Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company’s operates through segments, including Airline Segment and Refinery Segment. The Airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and other ancillary airline services.
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