Delta Air Lines (NYSE:DAL) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Delta Air Lines, Inc. (NYSE:DAL) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $50.70, but opened at $56.20. Delta Air Lines shares last traded at $57.29, with a volume of 18,298,246 shares changing hands.

The transportation company reported $2.10 EPS for the quarter, beating the consensus estimate of $2.01 by $0.09. The company had revenue of $15,507,000 billion for the quarter, compared to analyst estimates of $16.16 billion. Delta Air Lines had a net margin of 5.91% and a return on equity of 28.18%. The firm’s revenue was down .1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.36 earnings per share.

Delta Air Lines Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, July 31st will be given a $0.1875 dividend. This represents a $0.75 dividend on an annualized basis and a yield of 1.32%. This is a positive change from Delta Air Lines’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Thursday, July 31st. Delta Air Lines’s dividend payout ratio (DPR) is 10.64%.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on DAL. Jefferies Financial Group reiterated a “hold” rating and issued a $46.00 price objective (down from $85.00) on shares of Delta Air Lines in a research report on Tuesday, April 1st. Bank of America lowered their price objective on shares of Delta Air Lines from $65.00 to $56.00 and set a “buy” rating on the stock in a research report on Thursday, April 3rd. The Goldman Sachs Group lowered their price objective on shares of Delta Air Lines from $83.00 to $60.00 and set a “buy” rating on the stock in a research report on Wednesday, April 2nd. TD Cowen lifted their price objective on shares of Delta Air Lines from $45.00 to $50.00 and gave the company a “buy” rating in a research report on Thursday, April 10th. Finally, Susquehanna reduced their target price on Delta Air Lines from $80.00 to $50.00 and set a “positive” rating for the company in a report on Monday, April 7th. Three equities research analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $61.42.

Institutional Trading of Delta Air Lines

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wealth Preservation Advisors LLC purchased a new stake in Delta Air Lines in the 1st quarter valued at about $31,000. Kayne Anderson Rudnick Investment Management LLC grew its holdings in Delta Air Lines by 414.4% in the 4th quarter. Kayne Anderson Rudnick Investment Management LLC now owns 535 shares of the transportation company’s stock valued at $32,000 after buying an additional 431 shares during the period. Zions Bancorporation National Association UT purchased a new stake in Delta Air Lines in the 1st quarter valued at about $33,000. Graney & King LLC purchased a new stake in Delta Air Lines in the 4th quarter valued at about $34,000. Finally, Continuum Advisory LLC grew its holdings in Delta Air Lines by 44.2% in the 4th quarter. Continuum Advisory LLC now owns 584 shares of the transportation company’s stock valued at $35,000 after buying an additional 179 shares during the period. Hedge funds and other institutional investors own 69.93% of the company’s stock.

Delta Air Lines Stock Up 12.1%

The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.33 and a current ratio of 0.38. The company has a market cap of $37.12 billion, a PE ratio of 10.08, a PEG ratio of 2.37 and a beta of 1.49. The firm has a fifty day simple moving average of $49.18 and a 200 day simple moving average of $52.78.

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.