Delta Air Lines (NYSE:DAL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Thursday.
According to Zacks, “Delta's efforts to reward its shareholders through dividends and buybacks are impressive. Similar to 2018, we expect the company to hike its quarterly dividend in 2019. Delta's employee-friendly approach is an added positive. Furthermore, its fleet modernization efforts are praiseworthy. We are, however, disappointed by Delta's decision to trim fourth-quarter 2018 unit revenue view. Detailed results should be available on Jan 15. According to the company, the decision to trim guidance was due to the slower-than-expected improvement in close-in yield in late December. In fact, this was the second time that Delta had trimmed its fourth-quarter unit revenue forecast in a short span of time. Nonetheless, fuel cost is likely to be less of a hindrance in the fourth quarter compared to the other quarters of 2018. Delta expects fuel costs per gallon in the $2.38-$2.43 range, mirroring a 10 cent decrease from the earlier prediction.”
Other research analysts also recently issued research reports about the company. Susquehanna Bancshares started coverage on Delta Air Lines in a report on Wednesday, November 28th. They issued a “positive” rating and a $69.00 price target for the company. Bank of America reduced their price target on Delta Air Lines from $67.00 to $62.00 and set a “buy” rating for the company in a report on Wednesday, October 10th. Imperial Capital reissued an “outperform” rating and issued a $78.00 price target (up previously from $71.00) on shares of Delta Air Lines in a report on Thursday, September 27th. Deutsche Bank raised Delta Air Lines from a “hold” rating to a “buy” rating and increased their price target for the company from $53.00 to $60.00 in a report on Wednesday, October 17th. Finally, Citigroup started coverage on Delta Air Lines in a report on Wednesday, November 28th. They issued a “positive” rating and a $69.00 price target for the company. Three analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the company. Delta Air Lines has an average rating of “Buy” and an average target price of $68.22.
DAL stock opened at $48.56 on Thursday. The company has a quick ratio of 0.31, a current ratio of 0.37 and a debt-to-equity ratio of 0.59. Delta Air Lines has a 1 year low of $45.08 and a 1 year high of $61.32. The stock has a market capitalization of $33.23 billion, a PE ratio of 9.85, a P/E/G ratio of 0.50 and a beta of 1.13.
Delta Air Lines (NYSE:DAL) last posted its earnings results on Thursday, October 11th. The transportation company reported $1.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.74 by $0.06. Delta Air Lines had a return on equity of 27.72% and a net margin of 7.87%. The business had revenue of $11.95 billion during the quarter, compared to analyst estimates of $11.96 billion. During the same quarter last year, the firm earned $1.57 earnings per share. Equities analysts predict that Delta Air Lines will post 5.56 earnings per share for the current year.
In other Delta Air Lines news, CEO Edward H. Bastian sold 60,000 shares of the stock in a transaction that occurred on Thursday, December 27th. The stock was sold at an average price of $50.00, for a total transaction of $3,000,000.00. Following the transaction, the chief executive officer now owns 326,943 shares of the company’s stock, valued at approximately $16,347,150. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director George N. Mattson bought 4,000 shares of Delta Air Lines stock in a transaction on Monday, December 17th. The shares were purchased at an average cost of $52.87 per share, for a total transaction of $211,480.00. Following the acquisition, the director now owns 72,530 shares in the company, valued at $3,834,661.10. The disclosure for this purchase can be found here. Company insiders own 0.33% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Csenge Advisory Group acquired a new position in shares of Delta Air Lines in the 3rd quarter worth $42,000. Honkamp Krueger Financial Services Inc. acquired a new stake in shares of Delta Air Lines in the third quarter worth $116,000. Bell Rock Capital LLC acquired a new stake in shares of Delta Air Lines in the third quarter worth $122,000. Capital Advisors Ltd. LLC acquired a new stake in shares of Delta Air Lines in the third quarter worth $139,000. Finally, Point72 Hong Kong Ltd acquired a new stake in shares of Delta Air Lines in the second quarter worth $142,000. 87.59% of the stock is currently owned by institutional investors and hedge funds.
About Delta Air Lines
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 route network is centered on a system of hubs, international gateways, and airports in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St.
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