Stock Traders Purchase High Volume of Call Options on Delta Air Lines (NYSE:DAL)

Delta Air Lines, Inc. (NYSE:DAL) saw unusually large options trading on Monday. Traders purchased 118,927 call options on the stock. This is an increase of approximately 316% compared to the average daily volume of 28,568 call options.

Delta Air Lines Stock Down 0.1%

DAL traded down $0.06 during trading hours on Monday, hitting $79.85. 5,319,963 shares of the company’s stock were exchanged, compared to its average volume of 8,651,009. Delta Air Lines has a 12-month low of $55.03 and a 12-month high of $95.68. The firm has a 50 day moving average of $85.20 and a 200 day moving average of $77.27. The firm has a market cap of $52.51 billion, a P/E ratio of 13.24, a price-to-earnings-growth ratio of 1.10 and a beta of 1.29. The company has a current ratio of 0.42, a quick ratio of 0.35 and a debt-to-equity ratio of 0.48.

Delta Air Lines (NYSE:DAL) last issued 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 company had revenue of $17.67 billion during the quarter, compared to analysts’ expectations of $17.43 billion. Delta Air Lines had a net margin of 5.79% and a return on equity of 17.52%. The firm’s revenue was up 18.7% compared to the same quarter last year. During the same quarter last year, the company posted $2.10 EPS. Analysts predict that Delta Air Lines will post 6.23 EPS for the current fiscal year.

Delta Air Lines Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 30th. Stockholders of record on Thursday, July 9th were given a dividend of $0.215 per share. This is a boost from Delta Air Lines’s previous quarterly dividend of $0.19. This represents a $0.86 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Thursday, July 9th. Delta Air Lines’s dividend payout ratio is presently 14.26%.

Insider Buying and Selling

In other news, EVP Steven Sear sold 40,460 shares of the company’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $93.55, for a total value of $3,785,033.00. Following the transaction, the executive vice president owned 104,404 shares of the company’s stock, valued at $9,766,994.20. This represents a 27.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Michael Huerta sold 3,100 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $94.11, for a total value of $291,741.00. Following the transaction, the director owned 32,525 shares of the company’s stock, valued at approximately $3,060,927.75. This represents a 8.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 356,726 shares of company stock valued at $33,081,037. 0.80% of the stock is currently owned by company insiders.

Institutional Trading of Delta Air Lines

A number of large investors have recently made changes to their positions in the company. Junto Capital Management LP purchased a new position in Delta Air Lines in the second quarter worth approximately $21,254,000. Sequoia Financial Advisors LLC raised its holdings in shares of Delta Air Lines by 4.9% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 56,887 shares of the transportation company’s stock valued at $5,328,000 after purchasing an additional 2,647 shares in the last quarter. National Pension Service raised its holdings in shares of Delta Air Lines by 20.3% in the 2nd quarter. National Pension Service now owns 66,813 shares of the transportation company’s stock valued at $6,258,000 after purchasing an additional 11,279 shares in the last quarter. RFG Advisory LLC lifted its position in shares of Delta Air Lines by 25.8% during the 2nd quarter. RFG Advisory LLC now owns 5,310 shares of the transportation company’s stock worth $497,000 after purchasing an additional 1,088 shares during the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in Delta Air Lines by 24.8% during the 2nd quarter. NewEdge Advisors LLC now owns 132,293 shares of the transportation company’s stock worth $12,391,000 after buying an additional 26,327 shares during the last quarter. 69.93% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

DAL has been the topic of a number of research analyst reports. JPMorgan Chase & Co. boosted their price target on shares of Delta Air Lines from $85.00 to $114.00 and gave the company an “overweight” rating in a research note on Monday, July 13th. Morgan Stanley lifted their target price on shares of Delta Air Lines from $115.00 to $125.00 and gave the company an “overweight” rating in a report on Friday, July 10th. UBS Group cut their target price on Delta Air Lines from $112.00 to $99.00 and set a “buy” rating on the stock in a research report on Thursday. Susquehanna upped their price target 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. Finally, TD Cowen lowered their price target on Delta Air Lines from $112.00 to $105.00 and set a “buy” rating for the company in a research report on Monday, August 24th. Twenty-three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $98.84.

About Delta Air Lines

Delta Air Lines, Inc is a major U.S. airline that provides scheduled passenger air transportation throughout the United States and to destinations across North America, Latin America, Europe, Asia, Africa and the Middle East. The company also offers air cargo services and operates a loyalty program, SkyMiles, along with related travel and customer services.

Headquartered in Atlanta, Georgia, Delta operates a network of domestic and international routes through hubs and focus cities that include Atlanta, Boston, Detroit, Los Angeles, Minneapolis–Saint Paul, New York, Salt Lake City and Seattle.