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 note issued 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.”
A number of other brokerages also recently commented on DAL. Cowen and Company reissued an “outperform” rating and set a $55.00 price objective on shares of Delta Air Lines in a research report on Thursday, August 11th. JPMorgan Chase & Co. lowered their price objective on Delta Air Lines from $63.00 to $48.50 and set an “overweight” rating for the company in a research report on Wednesday, July 27th. Sanford C. Bernstein started coverage on Delta Air Lines in a research report on Tuesday, October 11th. They set a “market perform” rating and a $43.00 price objective for the company. Imperial Capital started coverage on Delta Air Lines in a research report on Wednesday, August 24th. They set an “in-line” rating and a $41.00 price objective for the company. Finally, Vetr downgraded Delta Air Lines from a “strong-buy” rating to a “hold” rating and set a $41.22 price objective for the company. in a research report on Thursday, October 6th. One research analyst has rated the stock with a sell rating, five have given a hold rating and fifteen have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average target price of $52.46.
Delta Air Lines (NYSE:DAL) opened at 39.35 on Tuesday. The stock’s 50 day moving average is $38.47 and its 200 day moving average is $40.14. Delta Air Lines has a 12-month low of $32.60 and a 12-month high of $52.77. The stock has a market capitalization of $29.83 billion, a price-to-earnings ratio of 6.41 and a beta of 0.95.
Delta Air Lines (NYSE:DAL) last announced its quarterly earnings data on Thursday, October 13th. The company reported $1.70 EPS for the quarter, topping the Zacks’ consensus estimate of $1.65 by $0.05. Delta Air Lines had a return on equity of 37.39% and a net margin of 11.92%. The business earned $10.48 billion during the quarter. During the same period in the prior year, the firm posted $1.74 earnings per share. The business’s quarterly revenue was down 5.6% compared to the same quarter last year. Equities research analysts forecast that Delta Air Lines will post $5.70 EPS for the current fiscal year.
In other news, EVP Steven M. Sear sold 4,670 shares of the company’s stock in a transaction that occurred on Tuesday, August 30th. The stock was sold at an average price of $37.18, for a total transaction of $173,630.60. Following the completion of the sale, the executive vice president now owns 52,173 shares in the company, valued at $1,939,792.14. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Paul A. Jacobson purchased 25,000 shares of the business’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 directly owns 328,631 shares of the company’s stock, valued at $12,787,032.21. The disclosure for this purchase can be found here. 0.75% of the stock is owned by insiders.
Several large investors have recently added to or reduced their stakes in the company. Geode Capital Management LLC boosted its stake in Delta Air Lines by 2.6% in the first quarter. Geode Capital Management LLC now owns 6,100,386 shares of the company’s stock valued at $296,438,000 after buying an additional 156,909 shares during the period. Riverhead Capital Management LLC boosted its stake in Delta Air Lines by 51.7% in the first quarter. Riverhead Capital Management LLC now owns 1,548,151 shares of the company’s stock valued at $75,365,000 after buying an additional 527,312 shares during the period. AXA boosted its stake in Delta Air Lines by 333.2% in the first quarter. AXA now owns 548,664 shares of the company’s stock valued at $26,709,000 after buying an additional 422,000 shares during the period. Pictet Asset Management Ltd. boosted its stake in Delta Air Lines by 2.6% in the first quarter. Pictet Asset Management Ltd. now owns 209,413 shares of the company’s stock valued at $10,102,000 after buying an additional 5,400 shares during the period. Finally, Primecap Management Co. CA boosted its stake in Delta Air Lines by 3.4% in the first quarter. Primecap Management Co. CA now owns 19,136,680 shares of the company’s stock valued at $931,574,000 after buying an additional 620,550 shares during the period. Institutional investors and hedge funds own 84.49% of the company’s stock.
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.
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