The company sees revenue returning to pre-pandemic levels
Delta Air Lines, Inc. (NYSE:DAL) is down 3.5% at $40.23 at last check, despite the company's upbeat quarterly outlook. Delta expects its second-quarter adjusted revenue to come in at pre-pandemic levels, as more customers return to travel. And though over 2,500 flights had to be canceled during the Memorial Day weekend, due to weather and Covid-19 cases among staff, the airline also lifted its operating margin outlook for the current quarter to 13%-14% -- marking upside from its initial low-end estimate.
DAL has been choppy since a post-earning surge failed at a familiar ceiling near the $46 mark. The security was able to find its footing near the $36 level, however, while the 40-day moving average emerged as support to contain yesterday's negative price action. The equity is up 4.7% so far in 2022, but down 13.9% in the past 12 months.
Analysts have been incredibly bullish on DAL, with all but one of the 14 in coverage calling it a "strong buy." Plus, the 12-month consensus price target of $53.94 is a 32.1% premium to current levels.
Options traders, on the other hand, have rarely been more bearish. While call volume is still outpacing put volume overall, the stock sports a 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands higher than all other readings from the past year.