Delta Air Lines, Inc. (NYSE:DAL) Sees Large Increase in Short Interest

Delta Air Lines, Inc. (NYSE:DAL) was the recipient of a significant growth in short interest during the month of March. As of March 31st, there was short interest totaling 23,974,789 shares, a growth of 45.2% from the March 15th total of 16,512,785 shares. Based on an average daily volume of 15,219,046 shares, the days-to-cover ratio is presently 1.6 days. Approximately 3.7% of the shares of the stock are sold short.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on DAL. Jefferies Financial Group lifted their target price on Delta Air Lines from $78.00 to $81.00 and gave the stock a “buy” rating in a report on Monday. BMO Capital Markets reaffirmed an “outperform” rating on shares of Delta Air Lines in a report on Wednesday, January 14th. Bank of America reduced their target price on Delta Air Lines from $80.00 to $78.00 and set a “buy” rating on the stock in a report on Wednesday, April 1st. Sanford C. Bernstein reissued an “outperform” rating and set a $81.00 price objective on shares of Delta Air Lines in a research note on Wednesday, January 14th. Finally, Rothschild & Co Redburn reduced their price objective on Delta Air Lines from $72.00 to $70.00 and set a “buy” rating on the stock in a research note on Thursday, March 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Delta Air Lines presently has a consensus rating of “Moderate Buy” and an average target price of $79.26.

Key Delta Air Lines News

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

• Positive Sentiment: Q1 beat and premium‑revenue strength — Delta’s April quarter topped estimates and management highlighted strong demand for premium seats and loyalty products, supporting margins and growth expectations; several brokers (including Jefferies and UBS) have raised price targets. Read More. Read More.
• Positive Sentiment: Momentum and valuation narrative — retail and sell‑side coverage highlight Delta as an “underrated” winner with strong free cash flow and a rally over the past year, supporting further upside if demand persists. Read More.
• Positive Sentiment: Fuel‑cost tailwinds possible — market commentary (including comments from major asset managers) suggests oil could fall materially if geopolitical tensions ease, which would lower jet‑fuel expense and boost airline margins. Read More.
• Neutral Sentiment: Industry M&A chatter — merger rumors between United and American are driving sector rotation; Delta may benefit indirectly as a strong standalone operator, but the story mainly affects peer valuations and sector multiples. Read More.
• Neutral Sentiment: Connectivity changes could create ancillary opportunities — reports about changes to sponsored in‑flight Wi‑Fi and potential satellite partnerships point to new ancillary revenue, but timing and scale are uncertain. Read More.
• Negative Sentiment: Insider selling — EVP John Laughter sold 15,000 shares (~$1.07M) in mid‑April and has reduced his overall stake, which can rattle sentiment even if sales are for diversification or liquidity. Read More.
• Negative Sentiment: Scaling back sustainability targets — Bloomberg/MSN report Delta trimmed sustainable aviation fuel and net‑zero goals, a move that may unsettle ESG‑focused investors and could carry reputational/regulatory risk. Read More.
• Negative Sentiment: Political pressure to cut fares — a lawmaker urged airlines to lower prices if fuel costs fall, which could constrain Delta’s pricing power and ancillary fee revenue if regulators or lawmakers push for fare relief. Read More.

Insider Transactions at Delta Air Lines

In other news, CEO Edward H. Bastian sold 100,000 shares of Delta Air Lines stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $70.26, for a total value of $7,026,000.00. Following the sale, the chief executive officer directly owned 1,363,448 shares of the company’s stock, valued at approximately $95,795,856.48. The trade was a 6.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP John E. Laughter sold 15,000 shares of Delta Air Lines stock in a transaction dated Tuesday, April 14th. The stock was 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 trade represents a 21.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 393,031 shares of company stock valued at $27,982,406. 0.88% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. Capital International Investors boosted its position in shares of Delta Air Lines by 4.4% during the fourth quarter. Capital International Investors now owns 24,211,101 shares of the transportation company’s stock valued at $1,680,249,000 after buying an additional 1,012,265 shares during the period. State Street Corp boosted its position in shares of Delta Air Lines by 0.7% during the fourth quarter. State Street Corp now owns 23,163,644 shares of the transportation company’s stock valued at $1,607,557,000 after buying an additional 165,729 shares during the period. Geode Capital Management LLC boosted its position in shares of Delta Air Lines by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 17,413,841 shares of the transportation company’s stock valued at $1,215,766,000 after buying an additional 202,865 shares during the period. Wellington Management Group LLP boosted its position in shares of Delta Air Lines by 137.4% during the fourth quarter. Wellington Management Group LLP now owns 13,811,787 shares of the transportation company’s stock valued at $958,538,000 after buying an additional 7,994,004 shares during the period. Finally, Morgan Stanley boosted its position in shares of Delta Air Lines by 0.5% during the fourth quarter. Morgan Stanley now owns 12,310,804 shares of the transportation company’s stock valued at $854,370,000 after buying an additional 56,455 shares during the period. Hedge funds and other institutional investors own 69.93% of the company’s stock.

Delta Air Lines Trading Down 2.6%

NYSE DAL traded down $1.87 during trading hours on Thursday, hitting $70.12. 6,012,179 shares of the company were exchanged, compared to its average volume of 11,273,392. The stock has a 50-day moving average price of $66.60 and a 200 day moving average price of $65.13. The company has a quick ratio of 0.36, a current ratio of 0.42 and a debt-to-equity ratio of 0.54. Delta Air Lines has a 52 week low of $38.80 and a 52 week high of $76.39. The stock has a market cap of $46.07 billion, a PE ratio of 10.21, a price-to-earnings-growth ratio of 1.05 and a beta of 1.31.

Delta Air Lines (NYSE:DAL) last issued its quarterly earnings data on Wednesday, April 8th. The transportation company reported $0.64 earnings per share for the quarter, topping the consensus estimate 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 analysts’ expectations of $14.05 billion. During the same period in the previous year, the firm posted $0.46 earnings per share. The firm’s revenue for the quarter was up 9.4% on a year-over-year basis. Analysts forecast that Delta Air Lines will post 7.63 earnings per share for the current fiscal year.

Delta Air Lines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 19th. Shareholders of record on Thursday, February 26th were given a dividend of $0.1875 per share. This represents a $0.75 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Thursday, February 26th. Delta Air Lines’s payout ratio is 10.93%.

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.