When is it too late for Delta Air Lines Inc. (NYSE:DAL) investors to make a purchase?
The stock price has already risen by about 40% in the past seven days.
It makes sense, then, to ask if DAL has already taken into account the demand for holidays in its price.
The answer is a big fat NO. At least, that was what the management said to us today.
Delta Air Lines announced very solid holiday bookings when it released its fourth-quarter guidance on Thursday.
What is the reason for Delta Air Lines’ stock decline today?
Delta Air Lines shares are falling this morning as the airline missed its profit and revenue targets for its third quarter. The full earnings announcement from Delta Air Lines can be read at the link below.
Investors aren’t used to seeing a leader in the industry like DAL show weakness. However, the airline has attributed the 45-cent drop in earnings adjusted to the CrowdStrike global outage during its most recent quarter.
The New York listed firm also wants to be compensated for its $380 million loss in revenue. This could lead to a non-recurring, significant benefit for the firm in one of their upcoming quarters.
The current weaknesses could be temporary, and they may become strengths in the future.
Delta Air Lines’ stock yields a current dividend of 1.18 percent, which makes it more attractive to buy, especially for people who are worried about upcoming economic downturns.
Delta Air Lines is not a costly company to invest in.
Delta Air Lines has cut routes in order to reduce overcapacity, and increase its revenue per seat mile.
The shares offer a great deal of value regardless of their multiple applications, whether it is the well-known price to earnings ratio, or enterprise value relative to EBITDA which accounts for more than $19 billion of adjusted net debt.
Insider sentiment is positive on DAL’s shares. Insiders of corporations have bought more Delta Air Lines stock in the last quarter than they did a year earlier. Director Willie Chiang purchased 10,000 airline shares in July for just over half a mil.
Analysts at Susquehanna reiterated earlier this week their “overweight rating” on Delta Air Lines, increasing their price target for the NYSE listed firm to $59 The analysts at Susquehanna reiterated their “overweight” rating on Delta Air Lines stock earlier this week, raising their price target for the NYSE-listed firm to $59.
Does this post reflect holiday sales in Delta Air Lines stock price? This post may change as new information becomes available
