Delta stock: buy or sell
Updated on:
Jan 16th, 2021
1
Delta stock brief
- Delta Air Lines closed on Friday at $39.98 after dropping a -3.59% breaking a streak of 3 sessions in positive.
- On Thursday, Delta Air Lines released its Q4 financial report
- Evercore ISI, Morgan Stanley and Vertical Research posted strong bullish ratings for Delta Air Lines on Friday, with an average target of $56.00
- Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery.
Should I buy Delta Air Lines stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $DAL stock a buy?
In the current situation of Delta Air Lines there is not any eligible buy setup. This doesn't mean $DAL will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Delta Air Lines stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Just as when we have to buy shares, determining when is the best time to sell is not a whimsical decision, and we must adhere our own trading strategy. Our trading system selects very simple strategies to guide us on when is a good time to sell a stock. Be aware that these strategies should not be used for selling short Delta Air Lines stock
A golden rule is that you should never mantain a trade that yields higher than expected losses at the time of the buy. The timing to sell your stock should always be determined by the stop-loss (automatic or manual)
Is it time to sell Delta Air Lines stock?
Currently, Delta Air Lines stock doesn't match any of our preferred sell setups, so if you own Delta Air Lines stock and your operation is in profit probably is not time to sell now
Delta Air Lines ratings
In the last 30 days, 5 brokerage ratings were published for Delta Air Lines. General sentiment is bullish, with 3 out of 5 posting positive forecasts
| Brokerage firm | Rating |
|---|---|
| Jan 11th, 2021 | |
| Cowen | |
| Jan 14th, 2021 | |
| 140166 | Buy → Neutral |
| Jan 15th, 2021 | |
| Evercore ISI | Buy |
| Morgan Stanley | Buy |
| Vertical Research | Neutral → |
Delta Air Lines stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Since the price surpassed the upper band on Thursday, the price has corrected downwards by 6.24%. Since the price broke down the lower band on January 4, the price bounced by 4.30%. The price is trading near to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a buy signal, as price can trade in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 in early December after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Friday was 49.92. Delta Air Lines shares sank a 6.92% since then
Delta Air Lines stock price history
Delta Air Lines went public on May 3rd, 2007 at $19.32 per share1. Since then, DAL stock surged by 106.94%, with an average of 8.23% per year. If you had invested thousand dollars in Delta Air Lines stock on May 2007, it would be valued $2,069.36 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Delta Air Lines stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions post their price forecasts based on the stock price action and the company fundamental data. Most of these forecasts follow the release of new financial data by the company, and usually. If you are a small trader you don't have to trade based on these projections.
There are 5 price predictions posted for Delta Air Lines that average $51.40. That is a 28.56% than the current price ($39.98).
| Brokerage firm | Price target |
|---|---|
| Jan 11th, 2021 | |
| Cowen | $44.00 |
| Jan 14th, 2021 | |
| 140166 | $42.00 → $45.00 |
| Jan 15th, 2021 | |
| Evercore ISI | $51.00 → $55.00 |
| Morgan Stanley | $51.00 → $55.00 |
| Vertical Research | $58.00 |
Earnings and financials
Delta Air Lines, Inc. ($DAL) posted earnings of $-2.53 per share on Thursday, matching the Wall St consensus estimate of $-2.51 per share. Turnover resulted of $4.0 billion compared to $3.6 billion estimated by analysts.
In contrast, the EPS for the same quarter last year was $1.70, so reported EPS is a reduction of -248.82%. Revenue dropped a -65.27% on an annualized basis in the , from $114.4B to $39.7B last quarter.Delta ($DAL) is hosting the earnings call next April.
Delta Air Lines performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Delta Air Lines ($DAL) | -4.20% | 27.30% | 48.10% |
Important note:
The thoughts expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not know the particular conditions of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are provided for education motives onlyDelta summary
| Friday, January 15th, 2021 | |
|---|---|
| Open | $41.67 |
| Close | $39.98 |
| Day range | $39.96 - $41.67 |
| Previous close | $41.47 |
| Session gain | -3.59% |
| Average true range | $1.43 |
| 50d mov avg | $39.35 |
| 100d mov avg | $35.39 |
| 200d mov avg | $30.72 |
| Earnings date | April 21st, 2021 |