Delta Air Lines, Inc. (DAL) Lowered to Strong Sell at Zacks Investment Research
Delta Air Lines, Inc. (NYSE:DAL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Shares of Delta Air Lines have struggled so far this year due to multiple headwinds. Consequently, the stock has underperformed its industry on a year-to-date basis. The carrier trimmed its current-quarter views for passenger unit revenue and operating margin earlier in the month. High fuel costs and soft yields have been cited as the reasons for the dull view. Meanwhile, high labor costs have been hurting the company for quite some time and the third quarter is likely to be no different. In fact, the negative sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for its current-quarter earnings has declined 7.8%, over the last 30 days. We are, however, appreciative of the company's efforts to enhance its shareholders’ wealth through dividends and share buybacks.”
A number of other analysts have also weighed in on DAL. Stifel Nicolaus reiterated a “buy” rating on shares of Delta Air Lines in a research note on Friday, May 26th. Vetr lowered shares of Delta Air Lines from a “strong-buy” rating to a “buy” rating and set a $55.68 price objective on the stock. in a research note on Thursday, June 1st. Atlantic Securities started coverage on shares of Delta Air Lines in a research note on Tuesday, June 20th. They issued an “overweight” rating and a $68.00 price objective on the stock. ValuEngine upgraded shares of Delta Air Lines from a “buy” rating to a “strong-buy” rating in a research note on Tuesday, June 20th. Finally, BidaskClub upgraded shares of Delta Air Lines from a “buy” rating to a “strong-buy” rating in a research note on Tuesday, June 27th. Two analysts have rated the stock with a sell rating, one has assigned a hold rating, fifteen have issued a buy rating and two have issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $61.97.
Shares of Delta Air Lines (DAL) traded up 0.29% on Wednesday, hitting $48.04. 5,535,044 shares of the stock traded hands. The company has a market cap of $34.97 billion, a PE ratio of 9.52 and a beta of 1.25. Delta Air Lines has a one year low of $37.48 and a one year high of $55.75. The stock has a 50 day moving average of $48.31 and a 200 day moving average of $49.10.
Delta Air Lines (NYSE:DAL) last released its quarterly earnings data on Thursday, July 13th. The transportation company reported $1.64 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.66 by ($0.02). The business had revenue of $10.79 billion during the quarter, compared to analyst estimates of $10.81 billion. Delta Air Lines had a return on equity of 28.33% and a net margin of 9.30%. The firm’s revenue was up 3.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.47 EPS. Equities analysts anticipate that Delta Air Lines will post $5.12 earnings per share for the current year.
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In other Delta Air Lines news, VP Craig M. Meynard sold 5,000 shares of the stock in a transaction on Friday, July 14th. The shares were sold at an average price of $55.26, for a total transaction of $276,300.00. Following the transaction, the vice president now directly owns 7,437 shares of the company’s stock, valued at $410,968.62. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, President Glen W. Hauenstein sold 67,000 shares of the stock in a transaction on Friday, July 14th. The shares were sold at an average price of $55.15, for a total transaction of $3,695,050.00. Following the transaction, the president now directly owns 239,418 shares in the company, valued at $13,203,902.70. The disclosure for this sale can be found here. Over the last ninety days, insiders have acquired 191,000 shares of company stock worth $287,440 and have sold 75,700 shares worth $4,171,150. Company insiders own 0.37% of the company’s stock.
Several large investors have recently bought and sold shares of DAL. BlackRock Inc. lifted its stake in shares of Delta Air Lines by 2,951.4% in the first quarter. BlackRock Inc. now owns 45,260,856 shares of the transportation company’s stock worth $2,080,189,000 after buying an additional 43,777,555 shares in the last quarter. Winslow Capital Management LLC lifted its stake in shares of Delta Air Lines by 5,815,030.8% in the first quarter. Winslow Capital Management LLC now owns 4,535,802 shares of the transportation company’s stock worth $208,465,000 after buying an additional 4,535,724 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Delta Air Lines by 85.6% in the first quarter. Dimensional Fund Advisors LP now owns 7,039,445 shares of the transportation company’s stock worth $323,542,000 after buying an additional 3,245,791 shares in the last quarter. Sound Shore Management Inc. CT purchased a new position in shares of Delta Air Lines in the second quarter worth about $158,224,000. Finally, TIAA CREF Investment Management LLC lifted its stake in shares of Delta Air Lines by 77.6% in the second quarter. TIAA CREF Investment Management LLC now owns 5,364,934 shares of the transportation company’s stock worth $288,312,000 after buying an additional 2,343,531 shares in the last quarter. 86.26% of the stock is currently owned by hedge funds and other institutional investors.
About Delta Air Lines
Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo throughout the United States and across the world. The Company’s segments include Airline and Refinery. The Company’s route network is centered around a system of hub, international gateway and airports that the Company operates in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St.
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