Delta Air Lines, Inc. (DAL) – Monthly Stock Review

Publication Date: September 22, 2024

Company Overview

Delta Air Lines, Inc. (DAL), headquartered in Atlanta, is a prominent player in the global aviation industry, specializing in scheduled air transportation for both passengers and cargo. Established in 1924, Delta operates a diverse range of services, including online ticket sales, aircraft maintenance, and vacation packages, alongside its core airline segment. With around 1,273 aircraft in its fleet, Delta has built a robust domestic network, with key operational hubs in cities like Minneapolis-St. Paul and Detroit, as well as servicing international destinations such as Amsterdam, London, and Tokyo.

As part of the resilient airline industry, currently recommended as a buy, Delta’s stock reflects the potential for growth as travel demand recovers following recent global disruptions. The airline industry has reported a total revenue of approximately $60.12 billion, highlighting its significant business activity. Analysts have set a high target price for stocks in this sector at $85.00, underscoring the promising outlook for investment opportunities in airline stocks as conditions continue to improve.

Stock Performance and Sentiment

Delta Air Lines has a total of 645,419,008 shares outstanding, with a short interest of 5.35% from the company’s float, indicating a moderate level of bearish sentiment among investors. With the current stock price at $46.94, this represents a potential upside of approximately 81% to reach the target high price of $85.00 and around 28% to meet the more conservative target mean price of $60.18.

The financial analysis presents a range of price targets, with a low of $45.32 and a median target of $59.50, supported by 18 analyst opinions. The overall consensus leans towards a positive investment outlook, marked by a recommendation score of 1.7, suggesting that analysts expect the stock to outperform its current valuation. Additionally, trading dynamics show that Delta maintains a strong market presence with its current stock price considerably above its 52-week low of $30.60 and recent trading well above its fifty-day moving average of $42.3752, indicating positive market momentum and investor confidence.

Financial Overview

While Delta’s substantial revenue figure of $60.12 billion reflects its operational capacity, the absence of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) data means a complete assessment of profitability is pending. Investors are encouraged to consider the implications of the various target prices against the revenue figures to evaluate growth potential. Analysts remain bullish on Delta’s future performance, contributing to the sentiment that the stock is a viable investment opportunity in a recovering travel market.

In summary, Delta Air Lines, Inc. shows promising potential in the aviation sector as demand rebounds, backed by solid revenue figures and an optimistic outlook from market analysts. With a well-positioned stock price relative to its operational capabilities, investors may find Delta a compelling option in the current financial landscape.

Metric	Value
Market Cap	$30.3b
Total Debt	$25.9b
Total Cash	$4.2b
Shares Outstanding	645.4m
Float Shares	638.0m