DAL is on the support level of a consolidationDAL is on the support level tested several times in the consolidation
Target price: 51
OYC trade ideas
$DAL with a Neutral outlook following its earnings #Stocks The PEAD projected a Neutral outlook for $DAL after a Positive over reaction following its earnings release placing the stock in drift B
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DAL Short Price is in bearish structure, retraced to correct the downward pressure, and moved down. Fundamentals: The gameplan to turn the company around is to attract customers via low prices and package deals (flight + hotel + cruise lines). However, the CEO does state all of this is dependent on the vaccine rollouts. The US is behind other nations when it comes to vaccine rollouts and some states such as NY also mentioned the shortage of supplies they were encountering. Also, the CEO acknowledges the first two quarters of the year will be difficult for the company and they will control their cash burn to turn around the third quarter.
DAL Keep ClimbingAirlines and other travel based companies definitely got hit the hardest from covid and are still slowly recovering where as other stocks have already recovered and more.
First signaled $18 entry which was a 2013 start of the uptrend and is a monthly level support zone. aka very strong level
Next Best entry placed at $27.60
Target $30.54
Next Target $34.59
Eventual Target $51.41
please don't dump on me Ed Bastian i love delta good airline, my first choice for flying
DAL SwingDAL along with the rest of the travel sector is catching some big buyers as the economy is shifting to its reopening phase. Look for some strong movements along the next couple of weeks as the chart is preparing for a big move too. Sitting directly under the 20EMA and a perfect bounce off the 50 - the stock also caught many buyers yesterday exactly off of the resistance, which is also a sign of strength.
U.S. airlines see recovery signs, United expects to end cash burU.S. airlines on Monday pointed to concrete signs of an industry recovery as a slowing COVID-19 pandemic helps leisure bookings, and United Airlines said it expects to halt its cash burn in March, sooner than forecast.
"I do think we're near the end of the virtual world," United Chief Executive Scott Kirby said at a J.P. Morgan conference.
In January, United said an average daily core cash burn of $19 million in the fourth quarter would likely continue in the beginning of 2021, with improvements dependent on a recovery in demand.
Now it expects core cash burn to be positive in March, Kirby said. That is expected to continue after March, assuming the current bookings trajectory remains in place, he said.
Chicago-based United, which had been among the most pessimistic of the airlines heading into the pandemic a year ago, is the first to say it could hit the industry's cash burn milestone.
Shares of United surged 9% to $61.49 in morning trading. The Dow Jones U.S. Airlines Index was up 5%.
Delta Air Lines, Southwest Airlines and JetBlue Airways each said first-quarter revenue would decline at the low end of projections or less than previously forecast as vaccine rollouts accelerate and more people plan vacations or visits to friends and relatives
Delta CEO Ed Bastian, speaking at the same conference, said there are "real glimmers of hope" and that he was "cautiously optimistic" that the airline could halt its cash burn this spring.
More than 1.3 million passengers were screened in U.S. airports on Friday and Sunday, according to Transportation Security Administration data, the highest number since the pandemic crushed air travel in 2020.
Delta, which said it will use cash for aircraft purchases in the second quarter, expects its first-quarter revenue decline to be at the low end of its forecast for a 60% to 65% decline from the same quarter in 2019, before the onset of the pandemic.
Southwest forecast lower cash burn in the first quarter on Monday and a lower decline in operating revenue for February and March than previously forecast.
JetBlue also forecast a slowing pace in its first-quarter revenue drop, projecting a decline of between 61% and 64%, compared with the same period in 2019. It had previously forecast a fall in revenue of 65% to 70%.
American Airlines, the most leveraged U.S. airline, also said on Monday that bookings had increased but did not provide concrete guidance. However, its CEO said the company is not looking to raise any more financing after a $10 billion debt deal last week.
Delta Air line ***Based on analysts offering 12 month price targets for DAL in the last 3 months.
The average price target is $48.77 with a high estimate of $58 and a low estimate of $40
Analyst Firms Making Recommendations
B OF A GLBL RES
COWEN & COMPANY
DEUTSCHE BK SEC
JEFFERIES & CO.
JP MORGAN SECUR
MORGAN STANLEY
RAYMOND JAMES
SEAPORT GLOBAL
STIFEL NICOLAUS
VERTICAL RESEAR
WOLFE RESEARCH
Analyst
$48.77
*** Insiders are buying five times than selling !!! AAl no trading al all !!!
Insider Ownership Percentage: 0.63%
Insider Buying (Last 12 Months): $46,108,962.00
Insider Selling (Last 12 Months): $203,118,704.06
*** no shorts interest to mention.
***Assets a bit more than liabilities which is better than American Airline.
Period Ending: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Assets 72051 64532 60266 53671
Total Liabilities 70698 49174 46579 41141
Total Equity 1353 15358 13687 12530
***Strong institutional ownership is an indication that hedge funds, large money managers
and endowments believe a company will outperform the market over the long term.
Well, Delta airline is ranked # 3 beating AAl
73.1% of Alaska Air Group shares are owned by institutional investors
-60.9% of United Airlines shares are owned by institutional investors
-59.5% of Delta Air Lines shares are owned by institutional investors
--44.4% of American Airlines Group shares are owned by institutional investors
Period Ending: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Revenue 17095 47007 44438 41138
Gross Profit 4615 25872 23248 23006
Operating Income -12469 6618 5264 5966
Net Income -12385 4767 3935 3205
✈️ Delta Air Lines: Pre-Covid levels in sight ✈️Scanning through higher time frame charts, NYSE:DAL caught my attention. The stock has been beaten down with the whole industry due to the Covid pandemic. Shares sold off heavily in February and March 2020, dropping about 70% from pre-Covid levels. Bottom was established on 14 May las year at $17.51. Since then though, the stock has been in a relatively clean up-trend, with higher lows and higher highs clearly established along the way.
In addition, last week's close confirmed a continuation pattern by breaking out from a bull flag. Probabilistically speaking, this is a very potent setup, especially as the flag formed over a period of two months.
Be cautious of resistance around $45 as this level served as multi-year support in 2017 and 2018 and has not yet been tested from the downside after it was broken in March last year. I expect prices to at least stall at this level before we get a continuation to the upside. Next reference point is the $55-57 zone, which is the unfilled gap from last week of February 2020. I expect this gap to act as resistance, however if it starts filling up, prices might move through it quickly.
So the technical view is clear. How about fundamentals?
Delta was the first major airline to report Q4 earnings earlier this year. There was definitely more optimism compared to several large competitors. But I'm conscious that might have been due to the holiday travel spike and the fact they reported to shortly after. Anyhow, sentiment and market perception seems to be more positive than competitors who reported later or are yet to report.
There has been lots of talk about the middle seat policy. The policy was widely rolled out almost a year ago in order to prevent Covid transmissions through social distancing measures. However as other airlines have started to unblock the middle seat rule, this policy is mostly perceived as a demand indicator. And the fact that Delta extended the middle seat rule on 8 February can be viewed as lack of demand. However they did only extend for 1 month, which is less than previous extensions. This suggest that we're getting close to a point where demand will be strong enough to warrant unblocking the middle seat. And when that happens, expect it to serve as a strong catalyst for he stock price.
In the end of January, the company announced that they're bringing back 400 pilots. Granted, this is only a small portion of it's 12,000 pilots. But still it's well ahead of when Delta originally estimated they would be able to convert pilots back to full flying status. And it shows their confidence in the projected recovery going into summer season.
📝 Summary 📝
I'm confident to recommend a buy position in Delta Air Lines based on both technical and fundamental reasons described above. Stay mindful of the $45 and $55 resistance levels and watch out for updates on the middle seat policy.
