Delta Air Lines (NYSE:DAL) Hits New 12-Month High – Should You Buy?

Delta Air Lines, Inc. (NYSE:DAL) shares reached a new 52-week high during trading on Thursday . The company traded as high as $83.76 and last traded at $81.6640, with a volume of 11963399 shares. The stock had previously closed at $79.39.

Key Stories Impacting Delta Air Lines

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

• Positive Sentiment: TD Cowen and UBS both raised their price targets on Delta, reinforcing confidence that the airline’s earnings outlook and valuation can improve. Delta (DAL) Stock Is Up, What You Need To Know
• Positive Sentiment: UBS lifted its target to $98 and kept a buy rating, citing a more constructive sector outlook; other recent analyst notes also leaned positive for airline profits and stock performance. Why Some Experts Say Airline Profits—and Stocks—Are About To Take Off
• Positive Sentiment: Falling oil prices are easing jet-fuel cost pressure across the airline group, which is helping airline stocks rally broadly. Airline stocks rally as oil retreat eases fuel cost pressure
• Neutral Sentiment: Delta’s executive vice president Allison Ausband disclosed recent stock sales. Insider selling can create some caution, but the transactions were relatively modest compared with Delta’s market value. Delta Air Lines (NYSE:DAL) EVP Allison Ausband Sells 5,000 Shares
• Neutral Sentiment: Delta is also working to improve operations after a rise in flight cancellations, which could matter for summer travel demand, but this is more of an execution issue than an immediate catalyst. Delta’s Flight Cancellations Have Mounted, and It’s Staffing Up to Improve

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. UBS Group boosted their price target on Delta Air Lines from $95.00 to $98.00 and gave the company a “buy” rating in a research report on Tuesday. BNP Paribas Exane dropped their price target on Delta Air Lines from $85.00 to $81.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 21st. Zacks Research upgraded Delta Air Lines from a “strong sell” rating to a “hold” rating in a research report on Wednesday, April 15th. Rothschild & Co Redburn dropped their price target on Delta Air Lines from $72.00 to $70.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. Finally, Weiss Ratings cut Delta Air Lines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, March 6th. One equities 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. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $79.89.

Delta Air Lines Price Performance

The company has a 50-day moving average of $69.43 and a 200-day moving average of $67.72. The stock has a market cap of $53.65 billion, a price-to-earnings ratio of 11.90, a PEG ratio of 1.15 and a beta of 1.25. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.36 and a current ratio of 0.42.

Delta Air Lines (NYSE:DAL) last announced its quarterly earnings data on Wednesday, April 8th. The transportation company reported $0.64 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.03. Delta Air Lines had a return on equity of 20.28% and a net margin of 6.87%.The company had revenue of $14.20 billion for the quarter, compared to analyst estimates of $14.05 billion. During the same quarter in the previous year, the company earned $0.46 EPS. The firm’s revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities research analysts predict that Delta Air Lines, Inc. will post 5.26 earnings per share for the current year.

Delta Air Lines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Thursday, May 14th will be issued a $0.1875 dividend. This represents a $0.75 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, May 14th. Delta Air Lines’s payout ratio is currently 10.93%.

Insider Buying and Selling at Delta Air Lines

In other Delta Air Lines news, EVP Allison C. Ausband sold 9,710 shares of Delta Air Lines stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $76.00, for a total value of $737,960.00. Following the sale, the executive vice president owned 138,854 shares of the company’s stock, valued at approximately $10,552,904. The trade was a 6.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP John E. Laughter sold 15,000 shares of Delta Air Lines 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 directly owned 54,369 shares in the company, valued at $3,893,364.09. This represents a 21.62% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 119,635 shares of company stock valued at $8,402,855. 0.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Delta Air Lines

A number of institutional investors have recently added to or reduced their stakes in the business. AlphaQuest LLC boosted its stake 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 worth $25,000 after acquiring an additional 211 shares in the last quarter. Accredited Wealth Management LLC boosted its stake 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 worth $28,000 after acquiring an additional 476 shares in the last quarter. Lloyd Advisory Services LLC. purchased a new stake in shares of Delta Air Lines during the 4th quarter worth approximately $31,000. SWAN Capital LLC boosted its stake 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 worth $32,000 after acquiring an additional 508 shares in the last quarter. Finally, Camelot Portfolios LLC purchased a new stake in shares of Delta Air Lines during the 4th quarter worth approximately $34,000. Hedge funds and other 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.