On February 8, 2023, Redburn Partners upgraded their outlook for Delta Air Lines from Neutral to Buy.

Analyst Price Forecast Suggests 31.90% Upside

As of February 9, 2023, the average one-year price target for Delta Air Lines is $52.02. The forecasts range from a low of $40.40 to a high of $85.05. The average price target represents an increase of 31.90% from its latest reported closing price of $39.44.

The projected annual revenue for Delta Air Lines is $51,579MM, an increase of 1.97%. The projected annual EPS is $4.85, an increase of 134.74%.

Delta Air Lines Declares $0.40 Dividend

On February 6, 2020 the company declared a regular quarterly dividend of $0.40 per share ($1.61 annualized). Shareholders of record as of February 19, 2020 received the payment on March 12, 2020. Previously, the company paid $0.40 per share.

At the current share price of $39.44 / share, the stock’s dividend yield is 4.08%. Looking back five years and taking a sample every week, the average dividend yield has been 2.59%, the lowest has been 2.17%, and the highest has been 3.04%. The standard deviation of yields is 0.23 (n=96).

The current dividend yield is 6.58 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.00. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

What are large shareholders doing?

Primecap Management holds 22,369K shares representing 3.50% ownership of the company. In it’s prior filing, the firm reported owning 21,302K shares, representing an increase of 4.77%. The firm increased its portfolio allocation in DAL by 10.11% over the last quarter.

Capital World Investors holds 22,189K shares representing 3.47% ownership of the company. In it’s prior filing, the firm reported owning 22,144K shares, representing an increase of 0.20%. The firm increased its portfolio allocation in DAL by 2.57% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 19,079K shares representing 2.98% ownership of the company. In it’s prior filing, the firm reported owning 18,883K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in DAL by 2.01% over the last quarter.

VIMSX – Vanguard Mid-Cap Index Fund Investor Shares holds 14,772K shares representing 2.31% ownership of the company. In it’s prior filing, the firm reported owning 14,757K shares, representing an increase of 0.10%. The firm increased its portfolio allocation in DAL by 1.38% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 14,534K shares representing 2.27% ownership of the company. In it’s prior filing, the firm reported owning 14,191K shares, representing an increase of 2.37%. The firm increased its portfolio allocation in DAL by 2.59% over the last quarter.

What is the Fund Sentiment?

There are 1561 funds or institutions reporting positions in Delta Air Lines. This is an increase of 15 owner(s) or 0.97% in the last quarter. Average portfolio weight of all funds dedicated to DAL is 0.23%, an increase of 7.93%. Total shares owned by institutions decreased in the last three months by 1.16% to 492,922K shares. The put/call ratio of DAL is 1.06, indicating a bearish outlook.

Delta Air Lines Background Information
(This description is provided by the company.)

Delta Air Lines is the U.S. global airline leader in safety, innovation, reliability and customer experience. Powered by its employees around the world, Delta has for a decade led the airline industry in operational excellence while maintaining its reputation for award-winning customer service.

This article originally appeared on Fintel

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