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

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

Several other analysts have also issued reports on DAL. UBS Group boosted their target price on Delta Air Lines from $99.00 to $105.00 and gave the company a “buy” rating in a research note on Thursday, September 24th. Rothschild & Co Redburn lifted their price objective on Delta Air Lines from $104.00 to $105.00 and gave the stock a “buy” rating in a report on Friday, September 18th. Sanford C. Bernstein restated an “outperform” rating and issued a $106.00 price objective on shares of Delta Air Lines in a research note on Monday, July 13th. BMO Capital Markets dropped their price objective on shares of Delta Air Lines from $105.00 to $100.00 and set an “outperform” rating on the stock in a report on Monday. Finally, Wells Fargo & Company increased their target price on shares of Delta Air Lines from $75.00 to $105.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 30th. Twenty-three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Delta Air Lines has an average rating of “Moderate Buy” and an average price target of $100.40.

Delta Air Lines Stock Up 1.0%

DAL stock opened at $84.87 on Monday. The stock’s fifty day simple moving average is $83.98 and its two-hundred day simple moving average is $78.77. 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 has a 1-year low of $55.03 and a 1-year high of $95.68. The stock has a market cap of $55.81 billion, a P/E ratio of 14.07, a P/E/G ratio of 1.21 and a beta of 1.29.

Delta Air Lines (NYSE:DAL) last announced its earnings results on Thursday, July 9th. The transportation company reported $1.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.49 by $0.07. The firm had revenue of $17.67 billion during the quarter, compared to analyst estimates 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 was up 18.7% compared to the same quarter last year. During the same period last year, the firm posted $2.10 EPS. Analysts expect that Delta Air Lines will post 5.99 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Alain Bellemare sold 35,000 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $92.72, for a total transaction of $3,245,200.00. Following the completion of the transaction, the executive vice president directly owned 95,025 shares in the company, valued at $8,810,718. The trade was a 26.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Steven M. Sear sold 40,460 shares of the company’s stock in a transaction dated 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 completion of the transaction, the executive vice president owned 104,404 shares in the company, valued at $9,766,994.20. This represents a 27.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 356,726 shares of company stock worth $33,081,037. Company insiders own 0.80% of the company’s stock.

Institutional Trading of Delta Air Lines

A number of large investors have recently modified their holdings of DAL. QRG Capital Management Inc. increased its position in shares of Delta Air Lines by 13.8% in the second quarter. QRG Capital Management Inc. now owns 175,873 shares of the transportation company’s stock worth $16,730,000 after purchasing an additional 21,329 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its position in Delta Air Lines by 1.6% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 30,318 shares of the transportation company’s stock valued at $2,840,000 after purchasing an additional 474 shares during the last quarter. Altar Rock LLC bought a new stake in Delta Air Lines during the second quarter valued at approximately $243,000. Junto Capital Management LP purchased a new position in Delta Air Lines in the 2nd quarter worth approximately $21,254,000. Finally, Sequoia Financial Advisors LLC grew its stake in 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 worth $5,328,000 after buying an additional 2,647 shares in the last quarter. Institutional investors own 69.93% of the company’s stock.

Key Stories Impacting Delta Air Lines

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

• Positive Sentiment: Delta is expanding its Europe network with new nonstop routes from Detroit and Boston and extended seasonal service. The move positions the airline to capture continued demand for transatlantic travel and could support international revenue growth. Delta Expands Europe Network With New Routes From Detroit and Boston
• Positive Sentiment: Analysts expect a double-digit increase in Delta’s profit in the next quarterly report, suggesting continued earnings momentum and providing a supportive catalyst ahead of the company’s results. What to Expect From Delta Air Lines’ Next Quarterly Earnings Report
• Neutral Sentiment: Delta advanced while the broader market declined, indicating relative strength during the latest session, although the report provided limited new fundamental information. Delta Air Lines Advances While Market Declines
• Negative Sentiment: Elon Musk criticized Delta’s decision not to adopt Starlink’s inflight Wi-Fi, warning that the airline could lose customers as United Airlines expands its connected fleet. The comments raise competitive and customer-experience concerns, though the financial impact remains uncertain. Elon Musk Warns Delta Could Lose Customers Over Starlink Decision
• Negative Sentiment: Higher oil prices are renewing pressure on airline profit expectations because fuel is a major operating expense. Separately, a Delta flight diverted to Porto after smoke was reported in the cabin, adding a short-term operational and reputational risk. Delta Faces Fuel-Cost and Flight-Diversion Concerns
• Negative Sentiment: BMO Capital lowered its price target to $100 from $105 while maintaining an Outperform rating. Seaport Research Partners also cut its target to $95, reflecting more cautious expectations even though both targets remain above the recent share price. BMO Adjusts Delta Price Target

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.