David Taylor, a director at
Delta Air Lines (DAL), recently bought 20,000 shares in two 10,000 share buys. The first buy cost just under $331,000, and the second buy came to $307,500.
The director was previously a buyer back in April, the last time shares also traded in the low $30 range before moving higher over the summer. Over the same time, several company executives were sellers when shares traded in the high-$30 to low-$40 range.
Overall, Delta insiders own 0.3 percent of shares.
The airliner is currently trading flat over the past year, following the recent seasonal market selloff. Plus, energy prices have been trending higher, which tends to impact the profit margin of any airline.
Operationally, things look much better. Revenues are up by 11 percent, and earnings jumping higher by nearly 60 percent.
Action to take: Delta’s improving fundamentals have pushed shares down to about 5 times forward earnings. Plus, the reinstated dividend has moved the yield to 1.2 percent.
That makes shares a buy here, likely with some mid-double-digit upside to the mid-$40 range where insiders tend to be sellers.
For traders, shares look oversold and ready to move higher into the holiday season. The January 2024 $35 calls, last going for about $1.15, could see high double-digit returns should shares see their seasonal trend higher in the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.