Delta Air Lines Target of Unusually High Options Trading (NYSE:DAL)

Delta Air Lines, Inc. (NYSE:DAL) was the target of some unusual options trading on Friday. Traders bought 51,609 call options on the stock. This represents an increase of approximately 82% compared to the average volume of 28,314 call options.

Insider Buying and Selling at Delta Air Lines

In related news, EVP Alain Bellemare sold 35,000 shares of Delta Air Lines stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $92.72, for a total value of $3,245,200.00. Following the completion of the sale, the executive vice president owned 95,025 shares of the company’s stock, valued at approximately $8,810,718. This trade represents a 26.92% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, President Peter W. Carter sold 39,900 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $92.98, for a total transaction of $3,709,902.00. Following the sale, the president directly owned 424,704 shares in the company, valued at approximately $39,488,977.92. This trade represents a 8.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 356,726 shares of company stock valued at $33,081,037 in the last quarter. Insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On Delta Air Lines

Hedge funds and other institutional investors have recently bought and sold shares of the stock. iA Global Asset Management Inc. increased its holdings in Delta Air Lines by 53.2% during the 4th quarter. iA Global Asset Management Inc. now owns 92,142 shares of the transportation company’s stock valued at $6,395,000 after purchasing an additional 32,014 shares during the period. Tredje AP fonden raised its position in Delta Air Lines by 1,563.4% during the 4th quarter. Tredje AP fonden now owns 466,797 shares of the transportation company’s stock valued at $32,396,000 after purchasing an additional 438,735 shares during the last quarter. Leonteq Securities AG purchased a new stake in Delta Air Lines in the 4th quarter worth approximately $2,728,000. Cerity Partners LLC lifted its holdings in Delta Air Lines by 13.6% in the 4th quarter. Cerity Partners LLC now owns 425,654 shares of the transportation company’s stock worth $29,540,000 after buying an additional 51,041 shares during the period. Finally, Principal Financial Group Inc. grew its position in shares of Delta Air Lines by 2.5% in the 4th quarter. Principal Financial Group Inc. now owns 720,421 shares of the transportation company’s stock worth $49,997,000 after buying an additional 17,316 shares during the last quarter. Hedge funds and other institutional investors own 69.93% of the company’s stock.

Analyst Ratings Changes

DAL has been the topic of several recent research reports. BMO Capital Markets increased their target price on Delta Air Lines from $80.00 to $105.00 and gave the stock an “outperform” rating in a research report on Thursday, July 2nd. Morgan Stanley boosted their price objective on Delta Air Lines from $115.00 to $125.00 and gave the company an “overweight” rating in a research note on Friday, July 10th. Citigroup increased their price objective on Delta Air Lines from $106.00 to $110.00 and gave the stock a “buy” rating in a report on Sunday, July 12th. Benchmark restated a “buy” rating on shares of Delta Air Lines in a research note on Wednesday, July 8th. Finally, Barclays upped their price target on Delta Air Lines from $85.00 to $105.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Twenty-three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $99.84.

Delta Air Lines News Roundup

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

• Positive Sentiment: A U.S. appeals court vacated the Department of Transportation’s order terminating Delta’s joint venture and antitrust immunity with Grupo Aeroméxico. The ruling preserves the decade-old cross-border partnership, supporting network breadth, schedule coordination and potential revenue synergies. Delta Air Lines vs. Grupo Aeroméxico partnership article
• Positive Sentiment: Delta plans to resume daily nonstop service between New York and Tel Aviv on September 6. Restoring the route could improve international capacity utilization and revenue if travel demand remains firm. Delta to resume New York-Tel Aviv flights
• Positive Sentiment: Industry airfares have risen sharply, indicating a favorable pricing environment for carriers such as Delta. Higher fares could support revenue and margins, although capacity and demand will determine how durable the benefit is. Airfare pricing article
• Positive Sentiment: Delta’s valuation and analyst sentiment remain supportive: the company is described as a strong value stock and has a consensus “Moderate Buy” rating. Elevated call-option activity also signals increased near-term bullish speculation, though options flow is not a fundamental guarantee.
• Neutral Sentiment: Delta and United have resumed flights amid a broader shift in travel patterns; the key variables are whether demand holds and whether airlines can sustain pricing. Delta and United resume flights
• Negative Sentiment: American Airlines is restoring seatback screens to narrow its product and profitability gap with Delta, potentially increasing competitive pressure on Delta’s premium-service advantage. American Airlines restores screens
• Negative Sentiment: Recent trading showed DAL underperforming the broader market, suggesting investors may be taking profits or focusing on execution, competition and the sustainability of airline pricing despite the favorable partnership ruling.

Delta Air Lines Price Performance

Shares of NYSE DAL opened at $80.09 on Friday. The stock’s 50-day simple moving average is $87.73 and its two-hundred day simple moving average is $76.64. Delta Air Lines has a twelve month low of $55.03 and a twelve month high of $95.68. The firm has a market capitalization of $52.67 billion, a P/E ratio of 13.28, a P/E/G ratio of 1.10 and a beta of 1.31. The company has a quick ratio of 0.35, a current ratio of 0.42 and a debt-to-equity ratio of 0.48.

Delta Air Lines (NYSE:DAL) last issued its quarterly earnings results on Thursday, July 9th. The transportation company reported $1.56 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.49 by $0.07. Delta Air Lines had a return on equity of 17.52% and a net margin of 5.79%.The firm had revenue of $17.67 billion during the quarter, compared to the consensus estimate of $17.43 billion. During the same quarter last year, the company posted $2.10 EPS. The company’s revenue for the quarter was up 18.7% on a year-over-year basis. As a group, equities analysts anticipate that Delta Air Lines will post 6.23 EPS for the current fiscal year.

Delta Air Lines Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 30th. Shareholders of record on Thursday, July 9th were given a dividend of $0.215 per share. The ex-dividend date was Thursday, July 9th. This is a boost from Delta Air Lines’s previous quarterly dividend of $0.19. This represents a $0.86 annualized dividend and a yield of 1.1%. Delta Air Lines’s dividend payout ratio (DPR) is presently 14.26%.

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.