Delta Air Lines Inc. (NYSE:DAL) Undervalued? Fundamentals Hard To Beat?

Delta Air Lines Inc. (NYSE:DAL) shares fell to a low of $39.18 before closing at $40.24. Intraday shares traded counted 12.61 million, which was 25.84% higher than its 30-day average trading volume of 17.01M. DAL’s previous close was $38.94 while the outstanding shares total 635.00M. The firm has a beta of 1.46. The stock’s Relative Strength Index (RSI) is 52.61, with weekly volatility at 2.89% and ATR at 1.51. The DAL stock’s 52-week price range has touched low of $17.51 and a $62.48 high. The stock traded higher over the last trading session, gaining 3.34% on 12/23/20.

Investors have identified the Airlines company Delta Air Lines Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $25.93 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Delta Air Lines Inc. (DAL) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For DAL, the company has in raw cash 16.48 billion on their books with 5.04 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 25.03 billion total, with 19.73 billion as their total liabilities.

DAL were able to record -3.86 billion as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 14.62 billion. In cash movements, the company had a total of -2.51 billion as operating cash flow.

Potential earnings growth for Delta Air Lines Inc. (DAL)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Delta Air Lines Inc. recorded a total of 3.06 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -310.19% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 52.06%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 3.49 billion trying to sell their products during the last quarter, with the result yielding a gross income of -430.0 million. This allows shareholders to hold on to 635.00M with the recently reported earning now reading -8.47 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (-3.30 cents a share).

Having a look at the company’s valuation, the company is expected to record -0.17 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DAL sounds very interesting.

Is the stock of DAL attractive?

In related news, EVP & CFO, Jacobson Paul A sold 125,000 shares of the company’s stock in a transaction that recorded on Nov 09. The sale was performed at an average price of 35.84, for a total value of 4,480,000. As the sale deal closes, the EVP & Chief People Officer, Smith Joanne D now sold 13,532 shares of the company’s stock, valued at 498,045. Also, President, HAUENSTEIN GLEN W sold 51,955 shares of the company’s stock in a deal that was recorded on Nov 09. The shares were price at an average price of 36.90 per share, with a total market value of 1,917,243. Following this completion of acquisition, the Chief Executive Officer, Bastian Edward H now holds 65,000 shares of the company’s stock, valued at 2,182,700. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.

11 out of 23 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on Delta Air Lines Inc.. 1 analysts has assigned a Sell rating on the DAL stock. The 12-month mean consensus price target for the company’s shares has been set at $42.81.

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