Atlanta, Georgia-based Delta Air Lines Inc. (DAL) is a leading airline providing scheduled air transportation for passengers and cargo. With a market value of $38.7 billion, the company also provides aircraft maintenance, repair, and overhaul (MRO) services.
Companies valued at $10 billion or more are generally classified as “large-cap stocks,” and DAL fits the label perfectly, with a market cap in excess of that range, indicating its size, influence, and dominance in the aerospace industry. The company is focusing on fleet modernization, highlighted by recent orders for larger aircraft to expand its global and high-yield capacity.
The airline is down 22.4% from its 52-week high of $76.39 on February 11. DAL shares have fallen 15.2% over the past three months, with the Nasdaq Composite ($NASX) down 4.1% over the same period.
Additionally, on a YTD basis, DAL shares are down 14.6% compared to the NASX’s 2.3% decline. In the long term, DAL has gained 17.8% over the past 52 weeks, lagging behind the NASX’s 29.9% gain over the same time frame.
Confirming this recent bearish trend, DAL has been trading below its 200-day moving average since early March and has remained below its 50-day moving average since mid-February with little change.
On March 5, CEO Ed Bastian announced a series of leadership changes aimed at advancing DAL’s vision of becoming the world’s leading airline for the next generation of customers and employees. Peter Carter was named president, while Dan Jankey was named chief operating officer following the retirement of John Latter, longtime chief operating officer and president of Delta Take-Ups, effective April 30. In addition, Eric Snell has been named Chief Financial Officer and Ranjan Goswami has been named Chief Marketing and Product Officer.
DAL is ahead of its rival, American Airlines Group Inc. ( AAL ), which has declined 11.1% over the past 52 weeks and 27.5% on a YTD basis.
Despite DAL’s recent poor performance, analysts are very optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 24 analysts that cover it, and an average price target of $82.44 suggests a 39.1% premium to its current price level.
As of the date of publication, Niharika Jain held no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
