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- 1 DAL stock fell 5.14% in a week and 14.64% in a month but gained 25.53% YTD.
- 2 American pilots get a pay hike in new contracts causing airline stock to soar.
American Airlines stock soared as the pilots got a 46% pay boost per new 4-year contract, and Delta Airlines Inc. (NYSE: DAL) stock jumped 0.60%. The union representing 15,000 pilots reported that the new contract would boost 401(k) retirement plan contributions. Also, as the pandemic eases and people fly again, the industry hopes for gains.
Delta Airlines Inc. (DAL) Stock – Financial Analysis
The International Air Transport Association (IATA) suggested that the number of air passengers in 2024 will reach 4 Billion. The Business Research Company’s Airlines Global Market Report 2023 says the Global Airline Market will reach $708.40 Billion by 2027, with expanding CAGR of 8%.
Last quarter witnessed considerable insider selling at Delta Airlines Inc. Insiders sold $2.1 Million worth of shares during the time frame, with an average price of $31.58 each, lower than the current value. When an insider sells below the current price, it indicates that they consider lowering the price fair, ironically raising doubts about the higher current valuation.
Boeing Co. (NYSE: BA) gained 0.25% at $227.22, while United Airlines Holdings Inc. (NASDAQ: UAL) jumped 1.08% to $49.63.
Delta Airlines Inc. (NYSE: DAL) – Technical Analysis
DAL stock, at press time, is trading at $41.74, gaining 0.60%; previous close and open were at $41.49 and $41.69, respectively. The 52-week ranger is $27.20 to $49.81, indicating afterburners can take it to new highs. With an average volume of $10.49 Million shares, the market cap is $26.859 Billion.
The trailing twelve months (TTM) price-to-earnings (P/E) ratio is 9.02 suggesting an undervalued stock price. At the same time, the (TTM) earnings per share (EPS) is $4.63, showcasing financial strength. Analysts placed a 3.08 rating for “buy” and estimated a price target at $56.88 with a 36.2% upside.
Delta Airlines reported Q2 earnings on July 13, 2023, where the reported revenue of $14.613 Billion surpassed the expected value of $14.439 Billion by 1.20%. In comparison, the reported earnings of $2.68 per share also exceeded the estimated value of $2.401 by 11.61%.
Compared to the previous quarter, the revenue gained 12.69%, while EPS jumped by 86.11%. The subsequent earnings will be reported on October 17, 2023, where revenue could be around $14.446 Billion, while earnings to be $2.36 per share. The TTM revenue comes at $55.75 Billion, and the year-over-year (YoY) quarterly revenue growth is 12.70%.
Delta Airlines Inc. (DAL) Stock – Candle Exploration
DAL stock went through a nose dive with crucial support at $40.30 as a make-or-break point. If the stock price reverses from this point, the chances of an uptrend are there. If so, it must surpass immediate support at $46.06 to counter the drop. A strong momentum can be seen if the price actions travel across the selling zone.
If the nose dive continues below $40.60, the 200EMA would be the last line of defense or the last chance to increase the price before crashing. However, if the price reaches the buying zone, it should consolidate for base formation—how planes use runways before taking the skies.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
