Recent insider trends for Delta Air Lines, Inc. (NYSE:DAL) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of DAL, the data has a lot to say about how the stock might perform going forward.
Institutions own 85.94% of Delta Air Lines, Inc. (DAL)’s shares. The total value of these holdings, in millions, is $29,964. Among active positions in the latest quarter, 438 holders increased their positions by a total of 49.17 million shares, 413 holders decreased the positions by a total of 69.79 million shares, and 107 holders held their positions. This works out to a net decrease in ownership of 20.63 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 99 holders initiated new positions by a total of 19.3 million shares and 93 holders exited their positions by a total of 14.86 million shares. This nets out to an increase of 4.45 million shares and is a bullish sign for DAL.
In the last three months, insiders executed a total of 6 trades. 3 of these were buys and 3 were sells. Insider ownership decreased by a total of 190651 shares, which suggests that DAL’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 23 buys and 36 sells, and ownership decreased by a net of 254868 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Delta Air Lines, Inc. (NYSE:DAL)’s short interest is 11.08 million shares, or 1.66% of the float. This represents a decrease of -20% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that DAL is a sell, which implies that DAL is expected to underperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Delta Air Lines, Inc. (NYSE:DAL) is overvalued.