Delta Air Lines, Inc. (NYSE: DAL) shares rose in early trading today on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.
Meanwhile, in early trading today the Dow Jones Industrial Average DJIA, +0.19% rose 40 points, or 0.2%, to 19,929 while the S&P 500 SPX, +0.31% added 5 points to 2,275, a rise of 0.2%. The Nasdaq Composite Index COMP, +0.53% climbed 19 points, or 0.3%, to 5,567.
Delta Air Lines, Inc. (NYSE: DAL) had its price target increased by equities researchers at Cowen and Company from $57.00 to $60.00. With a rating of Outperform on the shares, Delta Air Lines, Inc. has a 52-week high of $52.76. The one-year price target of $0.40 is less than the opening price of $50.79, resulting a number of other analysts to comment on the stock in recent days.
Yesterday Delta Air Lines, Inc. (NYSE: DAL) shares last traded at $51.42, a jump of $0.53 from the previous closing price. Opening at $50.79, they ranged from $50.78 and $51.48 throughout the day.
Delta Air Lines, Inc. (NYSE: DAL) now has a market cap of 38.05B.
Delta Air Lines, Inc. (NYSE: DAL) Average Daily Trading Volume
The stock’s average daily volume is 9,199,300 shares out of a total float 731,726,000 and some 888,916 shares crossed the trading desk yesterday, 118 percent below the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you’re researching.
Delta Air Lines, Inc. (NYSE: DAL) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Delta Air Lines, Inc. (NYSE: DAL) have ranged from $32.60 – 52.76, and the stock now has a 50-day MA of $49.84 and 200-day MA of $41.99. Today’s last price is 2.54%% lower than the 52 week high of $52.76.
Earnings growth is an important factor to look at when buying stocks and investors identify companies that have been successful at growing their earnings by at least 25% over the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.