Delta Air Lines Inc. (DAL) Downgraded to Sell at Zacks Investment Research
Delta Air Lines Inc. (NYSE:DAL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Delta reported better-than-expected earnings per share but weaker-than-expected revenues in the third quarter of 2016. However, both metrics declined on a year-over-year basis. The power outage suffered by the company in August hurt results significantly. The company continues to struggle with unit revenue issues. Passenger unit revenues declined 6.8% in the third quarter. The metric is projected to decrease in the band of 3–5% in the fourth quarter. Passenger mile yield fell 5.3% in the third quarter. However, the capacity growth guidance for 2017 is encouraging. Capacity is projected to expand 1% next year, in line with the projection for the fourth quarter. We are also impressed by Delta’s efforts to enhance its shareholders‘ wealth through dividends and share buybacks. During the third quarter, the carrier returned $650 million to its shareholders.”
Several other research analysts have also commented on DAL. Cowen and Company decreased their target price on Delta Air Lines from $60.00 to $55.00 and set an “outperform” rating for the company in a research report on Wednesday, July 6th. Credit Suisse Group AG lifted their target price on Delta Air Lines from $48.00 to $51.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 6th. Deutsche Bank AG upgraded Delta Air Lines from a “hold” rating to a “buy” rating and set a $48.00 price objective for the company in a research report on Tuesday, July 12th. Evercore ISI lowered Delta Air Lines from a “buy” rating to a “hold” rating and reduced their price objective for the company from $60.00 to $50.00 in a research report on Friday, July 15th. Finally, Evercore Partners Inc. restated a “hold” rating on shares of Delta Air Lines in a research report on Friday, July 15th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and fifteen have issued a buy rating to the stock. Delta Air Lines currently has an average rating of “Buy” and an average target price of $52.46.
Shares of Delta Air Lines (NYSE:DAL) opened at 39.35 on Tuesday. Delta Air Lines has a 12-month low of $32.60 and a 12-month high of $52.77. The firm has a 50-day moving average price of $38.47 and a 200 day moving average price of $40.14. The firm has a market cap of $29.83 billion, a price-to-earnings ratio of 6.41 and a beta of 0.95.
Delta Air Lines (NYSE:DAL) last issued its earnings results on Thursday, October 13th. The company reported $1.70 EPS for the quarter, topping the consensus estimate of $1.65 by $0.05. The company earned $10.48 billion during the quarter. Delta Air Lines had a return on equity of 37.39% and a net margin of 11.92%. Delta Air Lines’s revenue was down 5.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.74 EPS. On average, equities research analysts anticipate that Delta Air Lines will post $5.70 earnings per share for the current fiscal year.
In other news, CFO Paul A. Jacobson acquired 25,000 shares of the company’s stock in a transaction dated Monday, July 25th. The shares were bought at an average price of $38.91 per share, with a total value of $972,750.00. Following the purchase, the chief financial officer now owns 328,631 shares of the company’s stock, valued at $12,787,032.21. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Steven M. Sear sold 4,671 shares of the business’s stock in a transaction on Wednesday, October 5th. The stock was sold at an average price of $40.16, for a total value of $187,587.36. Following the completion of the sale, the insider now directly owns 52,174 shares in the company, valued at approximately $2,095,307.84. The disclosure for this sale can be found here. 0.75% of the stock is owned by insiders.
Several hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in Delta Air Lines by 3.1% in the second quarter. Vanguard Group Inc. now owns 45,834,437 shares of the company’s stock worth $1,669,748,000 after buying an additional 1,365,714 shares in the last quarter. State Street Corp increased its stake in Delta Air Lines by 0.3% in the second quarter. State Street Corp now owns 25,597,606 shares of the company’s stock worth $932,516,000 after buying an additional 88,774 shares in the last quarter. Primecap Management Co. CA increased its stake in Delta Air Lines by 1.8% in the second quarter. Primecap Management Co. CA now owns 19,473,230 shares of the company’s stock worth $709,410,000 after buying an additional 336,550 shares in the last quarter. Bank of New York Mellon Corp increased its stake in Delta Air Lines by 10.8% in the second quarter. Bank of New York Mellon Corp now owns 12,936,824 shares of the company’s stock worth $471,288,000 after buying an additional 1,258,270 shares in the last quarter. Finally, Alliancebernstein L.P. increased its stake in Delta Air Lines by 10.7% in the second quarter. Alliancebernstein L.P. now owns 12,072,992 shares of the company’s stock worth $439,819,000 after buying an additional 1,164,497 shares in the last quarter. 84.49% of the stock is currently owned by institutional investors.
About Delta Air Lines
Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company’s operates through segments, including Airline Segment and Refinery Segment. The Airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and other ancillary airline services.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Delta Air Lines Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Delta Air Lines Inc. and related companies with MarketBeat.com's FREE daily email newsletter.