Delta Air Lines (NYSE:DAL) Shares Gap Up – Here’s Why
by Renee Jackson · The Cerbat GemDelta Air Lines, Inc. (NYSE:DAL – Get Free Report)’s stock price gapped up prior to trading on Friday . The stock had previously closed at $69.89, but opened at $74.42. Delta Air Lines shares last traded at $74.1960, with a volume of 2,232,315 shares trading hands.
Delta Air Lines News Roundup
Here are the key news stories impacting Delta Air Lines this week:
- Positive Sentiment: Oil price relief and Strait of Hormuz reopening reduce near‑term jet‑fuel risk, lifting travel stocks and improving sentiment for Delta. Airline stocks jump as oil eases, Strait of Hormuz reopening boosts sentiment
- Positive Sentiment: Zacks upgraded DAL from “strong sell” to “hold” this morning — a modest vote of confidence that can support momentum after the Q1 beat. Zacks.com
- Positive Sentiment: Delta reported a Q1 revenue and EPS beat and several brokers have raised price targets, which underpins upside expectations and helps explain buying interest. MarketBeat DAL coverage
- Neutral Sentiment: Industry M&A chatter (possible tie‑ups among large U.S. carriers) is shifting sector dynamics; Delta could be a relative beneficiary, but outcomes are uncertain and the news mainly affects peers. United and Royal Caribbean Lead the S&P 500 Today. Travel Stocks Surge as Oil Prices Plunge.
- Neutral Sentiment: Longer‑term ancillary revenue opportunities (e.g., satellite Wi‑Fi partnerships) were discussed; potential upside exists but timing and execution remain unclear. Amazon Kuiper Wi‑Fi report
- Negative Sentiment: Sector risk: Spirit Airlines’ rising bankruptcy/liquidation concerns rattled the group and could pressure airline multiples and sentiment if contagion fears persist. Spirit Airlines bankruptcy fears
- Negative Sentiment: Insider selling: EVP John Laughter sold ~15,000 shares (SEC filing), which can spook some investors even if sales are for diversification/liquidity. SEC insider sale filing
- Negative Sentiment: Bloomberg/MSN report that Delta scaled back some sustainable aviation fuel and net‑zero targets could concern ESG‑focused investors and attract regulatory/PR scrutiny. Delta scales back sustainability targets
Analyst Ratings Changes
DAL has been the subject of several research analyst reports. BMO Capital Markets restated an “outperform” rating on shares of Delta Air Lines in a research report on Wednesday, January 14th. Dbs Bank upgraded shares of Delta Air Lines to a “moderate buy” rating in a research report on Monday, January 19th. UBS Group upped their price target on shares of Delta Air Lines from $84.00 to $86.00 and gave the company a “buy” rating in a research report on Thursday, April 9th. Citigroup upped their price target on shares of Delta Air Lines from $77.00 to $79.00 and gave the company a “buy” rating in a research report on Thursday, April 9th. Finally, Sanford C. Bernstein restated an “outperform” rating and issued a $81.00 price target on shares of Delta Air Lines in a research report on Wednesday, January 14th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $79.26.
View Our Latest Research Report on Delta Air Lines
Delta Air Lines Trading Up 3.8%
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 company has a market cap of $47.66 billion, a PE ratio of 10.58, a P/E/G ratio of 1.06 and a beta of 1.31. The business’s 50-day simple moving average is $66.60 and its 200-day simple moving average is $65.16.
Delta Air Lines (NYSE:DAL – Get Free Report) last released its earnings results on Wednesday, April 8th. The transportation company reported $0.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.61 by $0.03. Delta Air Lines had a net margin of 6.87% and a return on equity of 20.28%. The company had revenue of $14.20 billion during the quarter, compared to the consensus estimate of $14.05 billion. During the same quarter in the prior year, the firm earned $0.46 EPS. The company’s revenue was up 9.4% compared to the same quarter last year. As a group, analysts expect that Delta Air Lines, Inc. will post 7.63 EPS for the current fiscal year.
Delta Air Lines Announces Dividend
The business also recently announced a quarterly dividend, which was paid on Thursday, March 19th. Shareholders of record on Thursday, February 26th were given a $0.1875 dividend. The ex-dividend date was Thursday, February 26th. This represents a $0.75 dividend on an annualized basis and a yield of 1.0%. Delta Air Lines’s dividend payout ratio is presently 10.93%.
Insider Buying and Selling
In other Delta Air Lines news, EVP John E. Laughter sold 15,000 shares of the stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $71.61, for a total value of $1,074,150.00. Following the completion of the sale, the executive vice president owned 54,369 shares in the company, valued at $3,893,364.09. This represents a 21.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Edward H. Bastian sold 100,000 shares of the stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $70.26, for a total transaction of $7,026,000.00. Following the completion of the sale, the chief executive officer owned 1,363,448 shares of the company’s stock, valued at approximately $95,795,856.48. The trade was a 6.83% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 353,611 shares of company stock worth $25,182,798. Insiders own 0.88% of the company’s stock.
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently modified their holdings of the business. AlphaQuest LLC raised its holdings in shares of Delta Air Lines by 90.6% during the 3rd quarter. AlphaQuest LLC now owns 444 shares of the transportation company’s stock valued at $25,000 after purchasing an additional 211 shares in the last quarter. Accredited Wealth Management LLC raised its holdings in shares of Delta Air Lines by 1,983.3% during the 3rd quarter. Accredited Wealth Management LLC now owns 500 shares of the transportation company’s stock valued at $28,000 after purchasing an additional 476 shares in the last quarter. Lloyd Advisory Services LLC. bought a new position in shares of Delta Air Lines during the 4th quarter valued at $31,000. SWAN Capital LLC raised its holdings in shares of Delta Air Lines by 1,016.0% during the 3rd quarter. SWAN Capital LLC now owns 558 shares of the transportation company’s stock valued at $32,000 after purchasing an additional 508 shares in the last quarter. Finally, Camelot Portfolios LLC bought a new position in shares of Delta Air Lines during the 4th quarter valued at $34,000. Institutional investors 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.