Delta Air Lines (NYSE:DAL) Sets New 1-Year High – Here’s What Happened

Delta Air Lines, Inc. (NYSE:DAL) reached a new 52-week high during trading on Monday . The stock traded as high as $86.64 and last traded at $86.7960, with a volume of 138361 shares changing hands. The stock had previously closed at $83.06.

Key Stories Impacting Delta Air Lines

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

• Positive Sentiment: The U.S. Department of Transportation closed its investigation into Delta’s handling of the 2024 global IT outage without seeking penalties, removing a potential overhang and reducing legal risk for the airline. US closes probe into 2024 Delta Air Lines meltdown sparked by CrowdStrike outage
• Positive Sentiment: Delta secured a new $2.65 billion undrawn revolving credit facility, which improves liquidity and supports the company’s financial flexibility if travel conditions weaken. Delta Air Lines (DAL) Stock Could Be 20% Below Fair Value After Liquidity Boost
• Positive Sentiment: Several market-watch articles continue to highlight Delta as an undervalued long-term stock, reflecting ongoing analyst and investor optimism about earnings prospects and valuation. Delta Air Lines (DAL) Might Drop Safran SA, Reports Bloomberg
• Neutral Sentiment: Bloomberg reported Delta may replace Safran as the supplier for new business-class suites on key transcontinental routes after delays, but this is more of an operational sourcing issue than an immediate earnings driver. Delta Air Lines (DAL) Might Drop Safran SA, Reports Bloomberg
• Neutral Sentiment: Delta’s recent share gains have been supported by broader airline optimism tied to easing geopolitical concerns and stronger industry sentiment, though the latest move in the stock has been modest. Delta Air Lines (DAL) Advances But Underperforms Market: Key Facts
• Negative Sentiment: Airline coverage noted that some Middle East route disruptions remain in place amid regional security concerns, which could continue to weigh on international operations if the situation worsens. Low-cost airline cancels all flights to country until October, refunds available

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Rothschild & Co Redburn cut their price objective on Delta Air Lines from $72.00 to $70.00 and set a “buy” rating for the company in a report on Thursday, March 5th. Zacks Research raised Delta Air Lines from a “strong sell” rating to a “hold” rating in a report on Wednesday, April 15th. UBS Group increased their price objective on Delta Air Lines from $95.00 to $98.00 and gave the company a “buy” rating in a report on Tuesday, May 26th. Argus increased their price objective on Delta Air Lines from $80.00 to $85.00 and gave the company a “buy” rating in a report on Thursday, April 9th. Finally, TD Cowen increased their price objective on Delta Air Lines from $84.00 to $92.00 and gave the company a “buy” rating in a report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Delta Air Lines has an average rating of “Moderate Buy” and a consensus target price of $80.85.

Delta Air Lines Trading Down 1.2%

The business has a 50 day moving average of $73.69 and a two-hundred day moving average of $69.89. The company has a current ratio of 0.42, a quick ratio of 0.36 and a debt-to-equity ratio of 0.54. The firm has a market cap of $54.59 billion, a P/E ratio of 12.11, a PEG ratio of 1.19 and a beta of 1.30.

Delta Air Lines (NYSE:DAL) last posted its earnings results on Wednesday, April 8th. The transportation company reported $0.64 earnings per share for the quarter, topping analysts’ consensus estimates of $0.61 by $0.03. Delta Air Lines had a return on equity of 20.28% and a net margin of 6.87%.The company had revenue of $14.20 billion during the quarter, compared to the consensus estimate of $14.05 billion. During the same quarter last year, the firm earned $0.46 earnings per share. The company’s revenue was up 9.4% on a year-over-year basis. Analysts predict that Delta Air Lines, Inc. will post 5.37 earnings per share for the current year.

Delta Air Lines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Thursday, May 14th were issued a dividend of $0.1875 per share. The ex-dividend date of this dividend was Thursday, May 14th. This represents a $0.75 dividend on an annualized basis and a dividend yield of 0.9%. Delta Air Lines’s dividend payout ratio (DPR) is currently 10.93%.

Insider Transactions at Delta Air Lines

In other news, EVP Allison C. Ausband sold 5,000 shares of Delta Air Lines stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $79.00, for a total transaction of $395,000.00. Following the completion of the sale, the executive vice president owned 133,854 shares of the company’s stock, valued at approximately $10,574,466. This trade represents a 3.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Alain Bellemare sold 25,000 shares of Delta Air Lines stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $81.44, for a total value of $2,036,000.00. Following the sale, the executive vice president directly owned 95,025 shares of the company’s stock, valued at $7,738,836. This represents a 20.83% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 149,635 shares of company stock valued at $10,833,855. 0.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Delta Air Lines

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Parallel Advisors LLC lifted its holdings in shares of Delta Air Lines by 10.1% during the first quarter. Parallel Advisors LLC now owns 13,180 shares of the transportation company’s stock worth $876,000 after buying an additional 1,206 shares in the last quarter. NewEdge Advisors LLC increased its position in shares of Delta Air Lines by 102.3% in the first quarter. NewEdge Advisors LLC now owns 105,966 shares of the transportation company’s stock worth $7,045,000 after purchasing an additional 53,581 shares during the period. Cozad Asset Management Inc. increased its position in shares of Delta Air Lines by 0.6% in the first quarter. Cozad Asset Management Inc. now owns 165,103 shares of the transportation company’s stock worth $10,976,000 after purchasing an additional 965 shares during the period. Compass Capital Management Inc. increased its position in shares of Delta Air Lines by 1.5% in the first quarter. Compass Capital Management Inc. now owns 128,663 shares of the transportation company’s stock worth $8,554,000 after purchasing an additional 1,844 shares during the period. Finally, Arete Wealth Advisors LLC increased its position in shares of Delta Air Lines by 375.0% in the first quarter. Arete Wealth Advisors LLC now owns 15,058 shares of the transportation company’s stock worth $1,001,000 after purchasing an additional 11,888 shares during the period. Institutional investors and hedge funds own 69.93% of the company’s stock.

About Delta Air Lines

Delta Air Lines is a major U.S.-based global airline that provides scheduled passenger and cargo air transportation, aircraft maintenance and repair services, and related travel products. Its operations include mainline domestic and international passenger services, a branded regional network operating under the Delta Connection name, dedicated air cargo carriage, and in-house maintenance, repair and overhaul through Delta TechOps. Delta offers a range of cabin products for different customer segments, including premium business-class service on long-haul routes and tiered economy offerings on domestic and international flights, and it markets customer loyalty benefits through the SkyMiles frequent-flyer program.

The carrier operates a mixed fleet of narrow- and wide-body aircraft from multiple U.S.