Delta Air Lines Stock Buy Hold or Sell Recommendation

DAL Stock  USD 47.87  0.56  1.18%   
Considering the 90-day investment horizon and your highly speculative risk level, our recommendation regarding Delta Air Lines is 'Strong Hold'. Macroaxis provides Delta Air buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding DAL positions. The advice algorithm takes into account all of Delta Air's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Delta Air's buy or sell advice are summarized below:
Real Value
48.99
Target Price
53.94
Hype Value
48.03
Market Value
47.87
Naive Value
49.17
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Delta Air Lines given historical horizon and risk tolerance towards Delta Air. When Macroaxis issues a 'buy' or 'sell' recommendation for Delta Air Lines, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Delta Air Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Delta and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Delta Air Lines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

Execute Delta Air Buy or Sell Advice

The Delta recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Delta Air Lines. Macroaxis does not own or have any residual interests in Delta Air Lines or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Delta Air's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Delta AirBuy Delta Air
Strong Hold

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Delta Air Lines has a Risk Adjusted Performance of 0.0771, Jensen Alpha of 0.0364, Total Risk Alpha of (0.21), Sortino Ratio of 0.0479 and Treynor Ratio of 0.1468
Our investment recommendation tool can be used to complement Delta Air trade advice provided by experts. It analyzes the company's potential to grow against your specific risk preferences and investment horizon. To make sure Delta Air is not overpriced, please confirm all Delta Air Lines fundamentals, including its shares owned by institutions, gross profit, debt to equity, as well as the relationship between the price to book and cash and equivalents . Given that Delta Air Lines has a price to book of 2.74 X, we urge you to verify Delta Air Lines market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Delta Air Trading Alerts and Improvement Suggestions

The company has 27.28 B in debt with debt to equity (D/E) ratio of 6.96, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Delta Air Lines has a current ratio of 0.56, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Delta Air until it has trouble settling it off, either with new capital or with free cash flow. So, Delta Air's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Delta Air Lines sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Delta to invest in growth at high rates of return. When we think about Delta Air's use of debt, we should always consider it together with cash and equity.
Delta Air Lines has a strong financial position based on the latest SEC filings
About 70.0% of Delta Air shares are held by institutions such as insurance companies
On 18th of March 2024 Delta Air paid $ 0.1 per share dividend to its current shareholders
Latest headline from investing.com: Hut 8 Mining Corp retains Sell rating and stock target on growth strategy

Delta Air Returns Distribution Density

The distribution of Delta Air's historical returns is an attempt to chart the uncertainty of Delta Air's future price movements. The chart of the probability distribution of Delta Air daily returns describes the distribution of returns around its average expected value. We use Delta Air Lines price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Delta Air returns is essential to provide solid investment advice for Delta Air.
Mean Return
0.25
Value At Risk
-2.15
Potential Upside
3.34
Standard Deviation
2.02
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Delta Air historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Delta Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Delta Air is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Delta Air Lines backward and forwards among themselves. Delta Air's institutional investor refers to the entity that pools money to purchase Delta Air's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Fmr Inc2023-12-31
7.4 M
Citadel Advisors Llc2023-09-30
6.9 M
Gmt Capital Corp2023-12-31
6.8 M
Royal London Asset Management Ltd2023-12-31
6.5 M
Gallagher Fiduciary Advisors, Llc2023-12-31
5.5 M
Northern Trust Corp2023-12-31
4.9 M
Par Capital Management Inc2023-12-31
4.5 M
Us Global Investors Inc2023-12-31
4.4 M
Amvescap Plc.2023-12-31
4.3 M
Vanguard Group Inc2023-12-31
72 M
Blackrock Inc2023-12-31
40 M
Note, although Delta Air's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Delta Air Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash982M6.3B(1.5B)(5.1B)(78M)(74.1M)
Free Cash Flow3.5B(5.7B)16M(2M)1.1B1.2B
Depreciation2.6B2.3B2.0B2.1B2.3B1.3B
Other Non Cash Items(615M)4.7B62M392M(33M)(31.4M)
Dividends Paid731M909M980M260M(128M)(121.6M)
Capital Expenditures4.9B1.9B3.2B6.4B5.3B5.6B
Net Income4.8B(12.4B)280M1.3B4.6B4.8B
End Period Cash Flow3.7B10.1B8.6B3.5B3.4B2.7B
Change To Inventory(139M)354M(318M)(158M)121M127.1M
Investments206M(5.8B)(897M)(6.9B)(7.3B)(7.0B)
Change Receivables(775M)1.2B(981M)(728M)(655.2M)(622.4M)
Net Borrowings487M17.5B(3.9B)(4.5B)(5.1B)(4.9B)
Change To Netincome858M(2.6B)172M1.6B1.9B1.9B

Delta Air Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Delta Air or Passenger Airlines sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Delta Air's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Delta stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.04
β
Beta against NYSE Composite1.66
σ
Overall volatility
2.09
Ir
Information ratio 0.06

Delta Air Volatility Alert

Delta Air Lines currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.04. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Delta Air's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Delta Air's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Delta Air Implied Volatility

Delta Air's implied volatility exposes the market's sentiment of Delta Air Lines stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Delta Air's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Delta Air stock will not fluctuate a lot when Delta Air's options are near their expiration.

Delta Air Fundamentals Vs Peers

Comparing Delta Air's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Delta Air's direct or indirect competition across all of the common fundamentals between Delta Air and the related equities. This way, we can detect undervalued stocks with similar characteristics as Delta Air or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Delta Air's fundamental indicators could also be used in its relative valuation, which is a method of valuing Delta Air by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Delta Air to competition
FundamentalsDelta AirPeer Average
Return On Equity0.52-0.31
Return On Asset0.0522-0.14
Profit Margin0.08 %(1.27) %
Operating Margin0.15 %(5.51) %
Current Valuation53.85 B16.62 B
Shares Outstanding643.32 M571.82 M
Shares Owned By Insiders0.34 %10.09 %
Shares Owned By Institutions70.46 %39.21 %
Number Of Shares Shorted16.1 M4.71 M
Price To Earning34.29 X28.72 X
Price To Book2.74 X9.51 X
Price To Sales0.52 X11.42 X
Revenue58.05 B9.43 B
Gross Profit9.68 B27.38 B
EBITDA7.58 B3.9 B
Net Income4.61 B570.98 M
Cash And Equivalents3.27 B2.7 B
Cash Per Share13.11 X5.01 X
Total Debt27.28 B5.32 B
Debt To Equity6.96 %48.70 %
Current Ratio0.57 X2.16 X
Book Value Per Share17.37 X1.93 K
Cash Flow From Operations6.46 B971.22 M
Short Ratio1.87 X4.00 X
Earnings Per Share7.17 X3.12 X
Price To Earnings To Growth39.29 X4.89 X
Target Price55.24
Number Of Employees103 K18.84 K
Beta1.43-0.15
Market Capitalization30.44 B19.03 B
Total Asset73.64 B29.47 B
Retained Earnings5.65 B9.33 B
Working Capital(16.15 B)1.48 B
Note: Purchase by David Taylor of 10000 shares of Delta Air [view details]

Delta Air Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Delta . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Delta Air Buy or Sell Advice

When is the right time to buy or sell Delta Air Lines? Buying financial instruments such as Delta Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total34.6B30.6B27.3B28.6B
Total Assets72.5B72.3B73.6B77.3B

Use Investing Ideas to Build Portfolios

In addition to having Delta Air in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Electronics Thematic Idea Now

Electronics
Electronics Theme
Companies manufacturing electronic appliances and goods. The Electronics theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Electronics Theme or any other thematic opportunities.
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When determining whether Delta Air Lines is a strong investment it is important to analyze Delta Air's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Delta Air's future performance. For an informed investment choice regarding Delta Stock, refer to the following important reports:
Check out Delta Air Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the Delta Air Lines information on this page should be used as a complementary analysis to other Delta Air's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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Is Delta Air's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Delta Air. If investors know Delta will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Delta Air listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.436
Dividend Share
0.3
Earnings Share
7.17
Revenue Per Share
90.842
Quarterly Revenue Growth
0.059
The market value of Delta Air Lines is measured differently than its book value, which is the value of Delta that is recorded on the company's balance sheet. Investors also form their own opinion of Delta Air's value that differs from its market value or its book value, called intrinsic value, which is Delta Air's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Delta Air's market value can be influenced by many factors that don't directly affect Delta Air's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Delta Air's value and its price as these two are different measures arrived at by different means. Investors typically determine if Delta Air is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Delta Air's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.