Delta Air Lines (NYSE:DAL) Shares Gap Down - Here's Why

Delta Air Lines, Inc. (NYSE:DAL - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $43.60, but opened at $42.33. Delta Air Lines shares last traded at $41.30, with a volume of 3,561,434 shares trading hands.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on DAL shares. The Goldman Sachs Group reduced their price objective on Delta Air Lines from $83.00 to $60.00 and set a "buy" rating on the stock in a research note on Wednesday. Barclays decreased their price target on shares of Delta Air Lines from $90.00 to $80.00 and set an "overweight" rating on the stock in a research note on Tuesday, March 11th. Jefferies Financial Group reissued a "hold" rating and issued a $46.00 price objective (down from $85.00) on shares of Delta Air Lines in a research note on Tuesday. StockNews.com downgraded shares of Delta Air Lines from a "buy" rating to a "hold" rating in a report on Tuesday, March 25th. Finally, Citigroup lowered their price target on shares of Delta Air Lines from $80.00 to $72.00 and set a "buy" rating for the company in a report on Tuesday, March 18th. Two analysts have rated the stock with a hold rating, twelve have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, Delta Air Lines presently has an average rating of "Buy" and a consensus target price of $71.49.

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Delta Air Lines Price Performance

The stock's 50 day moving average price is $56.92 and its 200-day moving average price is $58.12. The company has a quick ratio of 0.32, a current ratio of 0.37 and a debt-to-equity ratio of 0.92. The stock has a market capitalization of $25.02 billion, a PE ratio of 7.26, a price-to-earnings-growth ratio of 0.75 and a beta of 1.34.

Delta Air Lines (NYSE:DAL - Get Free Report) last released its quarterly earnings data on Friday, January 10th. The transportation company reported $1.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.09. The company had revenue of $15.56 billion during the quarter, compared to analysts' expectations of $14.20 billion. Delta Air Lines had a net margin of 5.61% and a return on equity of 30.41%. The firm's quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the company earned $1.28 EPS. As a group, equities analysts forecast that Delta Air Lines, Inc. will post 7.63 EPS for the current year.

Delta Air Lines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, March 20th. Stockholders of record on Thursday, February 27th were given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.55%. The ex-dividend date was Thursday, February 27th. Delta Air Lines's payout ratio is 11.26%.

Insider Activity at Delta Air Lines

In other news, CEO Edward H. Bastian sold 91,710 shares of the business's stock in a transaction dated Wednesday, January 22nd. The shares were sold at an average price of $69.85, for a total value of $6,405,943.50. Following the completion of the sale, the chief executive officer now owns 439,819 shares in the company, valued at approximately $30,721,357.15. The trade was a 17.25 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP William C. Carroll sold 6,783 shares of the company's stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $65.94, for a total transaction of $447,271.02. Following the completion of the sale, the senior vice president now directly owns 10,016 shares of the company's stock, valued at $660,455.04. The trade was a 40.38 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 162,886 shares of company stock worth $11,116,463 over the last three months. 0.96% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Delta Air Lines

Institutional investors have recently added to or reduced their stakes in the stock. New Wave Wealth Advisors LLC purchased a new position in shares of Delta Air Lines in the 4th quarter worth approximately $27,000. Hemington Wealth Management boosted its stake in Delta Air Lines by 48.1% in the fourth quarter. Hemington Wealth Management now owns 474 shares of the transportation company's stock valued at $28,000 after acquiring an additional 154 shares in the last quarter. Roxbury Financial LLC purchased a new position in Delta Air Lines in the fourth quarter worth $29,000. Crews Bank & Trust acquired a new position in shares of Delta Air Lines during the fourth quarter worth $30,000. Finally, Kayne Anderson Rudnick Investment Management LLC lifted its holdings in shares of Delta Air Lines by 414.4% during the 4th quarter. Kayne Anderson Rudnick Investment Management LLC now owns 535 shares of the transportation company's stock valued at $32,000 after purchasing an additional 431 shares during the last quarter. Institutional investors own 69.93% of the company's stock.

Delta Air Lines Company Profile

Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo.