Delta Air Lines (NYSE:DAL) Shares Down 2.2% Following Weak Earnings

Delta Air Lines, Inc. (NYSE:DAL)’s share price fell 2.2% during mid-day trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $43.90 and last traded at $43.98. 4,917,467 shares traded hands during mid-day trading, a decline of 49% from the average session volume of 9,612,950 shares. The stock had previously closed at $44.99.

The transportation company reported $2.36 earnings per share for the quarter, missing the consensus estimate of $2.37 by ($0.01). The company had revenue of $15.41 billion for the quarter, compared to analysts’ expectations of $15.45 billion. Delta Air Lines had a net margin of 8.48% and a return on equity of 41.89%. The company’s revenue was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.68 earnings per share.

Delta Air Lines Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 20th. Stockholders of record on Tuesday, July 30th will be given a $0.15 dividend. The ex-dividend date of this dividend is Tuesday, July 30th. This represents a $0.60 annualized dividend and a dividend yield of 1.36%. This is a positive change from Delta Air Lines’s previous quarterly dividend of $0.10. Delta Air Lines’s dividend payout ratio is currently 5.14%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on DAL shares. UBS Group started coverage on Delta Air Lines in a research report on Wednesday, March 20th. They set a “buy” rating and a $59.00 price objective for the company. HSBC assumed coverage on Delta Air Lines in a research report on Monday, May 13th. They set a “buy” rating and a $72.80 price objective for the company. Deutsche Bank Aktiengesellschaft increased their target price on Delta Air Lines from $50.00 to $60.00 and gave the company a “buy” rating in a research note on Thursday, April 11th. TD Cowen increased their target price on Delta Air Lines from $55.00 to $61.00 and gave the company a “buy” rating in a research note on Tuesday, July 2nd. Finally, Morgan Stanley reiterated an “overweight” rating and set a $85.00 target price on shares of Delta Air Lines in a research note on Thursday, April 11th. One investment analyst has rated the stock with a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $60.36.

Insider Buying and Selling at Delta Air Lines

In other news, Director Willie Cw Chiang bought 10,000 shares of Delta Air Lines stock in a transaction dated Wednesday, May 1st. The shares were purchased at an average cost of $49.50 per share, with a total value of $495,000.00. Following the completion of the acquisition, the director now owns 10,000 shares of the company’s stock, valued at approximately $495,000. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In other news, EVP Joanne D. Smith sold 4,846 shares of Delta Air Lines stock in a transaction dated Wednesday, May 8th. The stock was sold at an average price of $52.30, for a total value of $253,445.80. Following the sale, the executive vice president now directly owns 112,421 shares of the company’s stock, valued at $5,879,618.30. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Willie Cw Chiang bought 10,000 shares of Delta Air Lines stock in a transaction dated Wednesday, May 1st. The stock was purchased at an average cost of $49.50 per share, for a total transaction of $495,000.00. Following the completion of the acquisition, the director now directly owns 10,000 shares of the company’s stock, valued at approximately $495,000. The disclosure for this purchase can be found here. Insiders have sold a total of 178,919 shares of company stock valued at $8,834,653 over the last ninety days. 0.96% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. American International Group Inc. grew its position in Delta Air Lines by 1.6% in the fourth quarter. American International Group Inc. now owns 181,107 shares of the transportation company’s stock worth $7,286,000 after acquiring an additional 2,783 shares in the last quarter. International Assets Investment Management LLC boosted its position in shares of Delta Air Lines by 132.3% during the fourth quarter. International Assets Investment Management LLC now owns 466,741 shares of the transportation company’s stock valued at $18,777,000 after buying an additional 265,852 shares during the period. Capital Advisors Inc. OK purchased a new position in shares of Delta Air Lines during the fourth quarter valued at approximately $4,241,000. Meeder Asset Management Inc. boosted its position in shares of Delta Air Lines by 325.5% during the fourth quarter. Meeder Asset Management Inc. now owns 77,647 shares of the transportation company’s stock valued at $3,124,000 after buying an additional 59,398 shares during the period. Finally, First Hawaiian Bank purchased a new position in shares of Delta Air Lines during the first quarter valued at approximately $749,000. Hedge funds and other institutional investors own 69.93% of the company’s stock.

Delta Air Lines Stock Down 2.3 %

The company has a 50-day simple moving average of $50.07 and a 200-day simple moving average of $45.48. The firm has a market cap of $28.37 billion, a PE ratio of 5.79, a price-to-earnings-growth ratio of 0.82 and a beta of 1.35. The company has a debt-to-equity ratio of 1.48, a current ratio of 0.41 and a quick ratio of 0.36.

Delta Air Lines Company Profile

Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo.