Delta Air Lines (NYSE:DAL) Rating Lowered to “Strong Sell” at Zacks Research

Delta Air Lines (NYSE:DAL) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Monday, Zacks reports.

A number of other research analysts also recently commented on the stock. BMO Capital Markets cut their target price on shares of Delta Air Lines from $105.00 to $100.00 and set an “outperform” rating on the stock in a research report on Monday. Raymond James Financial cut their price objective 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, August 24th. Benchmark reissued a “buy” rating on shares of Delta Air Lines in a research note on Wednesday, July 8th. Argus set a $105.00 target price on Delta Air Lines in a research report on Tuesday, July 14th. Finally, Citigroup raised their target price on shares of Delta Air Lines from $106.00 to $110.00 and gave the company a “buy” rating in a research note on Sunday, July 12th. Twenty-three investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $100.40.

Delta Air Lines Trading Up 1.0%

DAL opened at $84.87 on Monday. The company has a quick ratio of 0.35, a current ratio of 0.42 and a debt-to-equity ratio of 0.48. The stock’s fifty day moving average is $83.98 and its two-hundred day moving average is $78.77. The company has a market capitalization of $55.81 billion, a P/E ratio of 14.07, a PEG ratio of 1.21 and a beta of 1.29. Delta Air Lines has a 52 week low of $55.03 and a 52 week high of $95.68.

Delta Air Lines (NYSE:DAL) last issued 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. The business had revenue of $17.67 billion during the quarter, compared to analysts’ expectations of $17.43 billion. Delta Air Lines had a return on equity of 17.52% and a net margin of 5.79%.The business’s revenue for the quarter was up 18.7% compared to the same quarter last year. During the same period in the prior year, the business earned $2.10 EPS. Analysts forecast that Delta Air Lines will post 5.99 earnings per share for the current year.

Insider Buying and Selling at Delta Air Lines

In related news, 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 completion of the sale, the chief executive officer owned 1,363,448 shares of the company’s stock, valued at $126,527,974.40. The trade was a 13.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Michael P. Huerta sold 3,100 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $94.11, for a total transaction of $291,741.00. Following the completion of the transaction, the director owned 32,525 shares in the company, valued at approximately $3,060,927.75. This trade represents a 8.70% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 356,726 shares of company stock worth $33,081,037. 0.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DAL. Capital International Investors raised its position in Delta Air Lines by 4.4% during the fourth quarter. Capital International Investors now owns 24,211,101 shares of the transportation company’s stock valued at $1,680,249,000 after acquiring an additional 1,012,265 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in Delta Air Lines in the 2nd quarter worth approximately $1,182,646,000. Capital World Investors boosted its position in Delta Air Lines by 0.6% in the 4th quarter. Capital World Investors now owns 8,395,096 shares of the transportation company’s stock worth $582,620,000 after purchasing an additional 46,341 shares in the last quarter. Allianz Asset Management GmbH grew its stake in shares of Delta Air Lines by 55.0% during the 4th quarter. Allianz Asset Management GmbH now owns 4,327,719 shares of the transportation company’s stock worth $300,344,000 after purchasing an additional 1,536,138 shares during the period. Finally, Pacer Advisors Inc. grew its stake in shares of Delta Air Lines by 50.9% during the 1st quarter. Pacer Advisors Inc. now owns 4,033,595 shares of the transportation company’s stock worth $268,153,000 after purchasing an additional 1,360,195 shares during the period. 69.93% of the stock is currently owned by institutional investors and hedge funds.

Delta Air Lines News Summary

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

• Positive Sentiment: Delta is expanding its transatlantic network with new nonstop routes from Detroit and Boston, along with extended seasonal service. The additions may support capacity growth and revenue as international travel demand remains strong. Delta Expands Europe Network With New Routes From Detroit and Boston
• Positive Sentiment: Analysts expect a double-digit increase in profit in Delta’s next quarterly report, suggesting continued earnings momentum ahead of the company’s scheduled results next month. What to Expect From Delta Air Lines’ Next Quarterly Earnings Report
• Neutral Sentiment: Delta recently advanced while the broader market declined, closing at $84.88. The move indicates relative strength, although the report offered limited new fundamental information. Delta Air Lines Advances While Market Declines
• Negative Sentiment: Zacks Research downgraded Delta from “hold” to “strong sell,” creating a fresh negative catalyst and potentially weighing on investor sentiment.
• Negative Sentiment: Elon Musk criticized Delta’s decision not to adopt Starlink, warning that the airline could lose customers as United Airlines expands satellite-based onboard Wi-Fi. The controversy raises competitive concerns about Delta’s passenger connectivity offering. DAL Stock in Focus: Elon Musk Takes Aim at Delta Over Starlink
• Negative Sentiment: BMO Capital lowered its price target to $100 from $105, citing pressure that included higher fuel costs, although it maintained an “outperform” rating. The reduced target and fuel-cost risk contributed to recent weakness in DAL shares. Delta Stock Dinged by Bear Note and Higher Fuel Costs

Delta Air Lines Company Profile

Delta Air Lines, Inc is a major U.S. airline that provides scheduled passenger and air freight transportation. The company serves destinations throughout the United States and connects customers to international markets across Europe, Asia, Latin America, Canada, Africa and the Caribbean through its own operations and regional airline partners.

Delta offers multiple classes of passenger service, including premium cabins and its main cabin, along with travel-related products such as vacation packages and loyalty benefits through the SkyMiles program.