Let’s reassess the active stocks with an eye toward DAL stock. Just how should we respond to Thursday’s drubbing? Is the mighty fruit now destined to decay? Or is this a mere bruising and nothing more? On 06 December, shares of Delta Air Lines, Inc. (NYSE:DAL) closed higher after a volatile session. The shares accumulated 1.14 points or 2 percent at $58.08 with a heavy trade volume of 8.994 million shares. After opening the session at $56.63, the shares went as high as $58.23 and as low as $56.51, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $39.8 billion and now has 686 million shares outstanding. Delta Air Lines, Inc. (DAL) stock has gained 3.62 percent of market value in 21 trading days.
DAL stock has a trailing 3-year beta of 0.9, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.17 a share in the trailing twelve months. The stock’s value has surged 3.71 percent year to date (YTD) against a rise of 10.86 percent in 12 month’s time. The company’s shares still trade -5.28 percent away from its 1-year high of $61.32 and 19.7 percent up from 52-week low of $48.52. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
Delta Air Lines, Inc. (DAL) will probably climb 17.44 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $95-month high price target. This represents a whopping 63.57 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $67, which represents a return potential of 15.36 percent when compared to the closing price of the stock of $58.08 on Thursday, December 06. The lowest price target for the stock is $60 — slightly more than 3.31 percent from DAL’s current share price.
History has shown that shares in Delta Air Lines, Inc. have gone up on 25 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. Investors will get their next glimpse of DAL’s Q4 earnings on January 22. Analysts are forecasting revenue to climb 6.7 percent to $10.9B in the fiscal fourth quarter, while earnings are seen soaring by nearly 31.25 percent to $1.26 per share. It earned $1.8 per share, better than the $1.74, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $12B, better than the $11.9B analysts expected. Earnings are estimated to increase by -11 percent this year, 16.8 percent next year and continue to increase by 16.02 percent annually for the next 5 years.
Let’s take a look at some insider activity at Delta Air Lines, Inc. (NYSE:DAL) and see the pattern. The earliest insider trade took place on 08/31/2018. Easter William H Iii parted with a total of 3 thousand shares of company at average share price of $58.47. The total for the sales was set at $175.41 thousand. After this transaction, the Director account balance stood at 45.04 thousand shares. The stock lost -2.62 percent since that insider sale. On 08/20/2018, Smith Joanne D, EVP & Chief HR Officer, sold 4.35 thousand shares at a price per share of $57.5. This removed 250.3 thousand shares from the insider’s fortune and the stock saw a -0.97 percent retreat in value since the news became public. This transaction left 90.97 thousand shares in the EVP & Chief HR Officer account.
On 08/15/2018, CEO Bastian Edward H performed a sale transaction worth $1.93 million. This sale at $55 each has eliminated 35 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 3.53 percent increase since the transaction was reported. The insider now is left with 266.94 thousand shares remaining in the account. Meynard Craig M, who performs the VP and Chief Acctg Officer job, sold 1.79 thousand shares for $97.38 thousand. The disposal occurred on 07/27/2018 was priced at $54.31 per share. The share price soared 4.84 percent since the reporting date. Meynard Craig M now left with a stake of 7.17 thousand DAL stock worth $416.43 thousand after the insider selling.
The stock is currently hovering around the first support level of $56.98. Below this, the next support is placed in the zone of $55.89. Till the time, the DAL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 55.77 on daily chart, which may remain a cause for concern. If the price breaks below $55.89 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $58.7 mark may result into a pull-back move towards $59.33 level.
Shares of Delta Air Lines, Inc. (DAL) are trading at a P/E ratio of 10.32 times earnings reported for the past 12 months. The industry DAL operates in has an average P/E of 13.56. Its P/E ratio went as low as 2.24X and as high as 63.07 over the 5-year span.Further, it is sporting a 0.91 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1. 53.6 percent is the gross profit margin for Delta Air Lines, Inc. and operating margin sits at 12.2 percent. Along with this, the net profit margin is 7.9 percent.