Have Delta Air Lines Insiders Been Selling Stock?
Some Delta Air Lines, Inc. (NYSE:DAL) shareholders may be a little concerned to see that the CEO & Director, Edward Bastian, recently sold a substantial US$4.1m worth of stock at a price of US$82.00 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.7%.
Delta Air Lines Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Strategic Advisor, Glen Hauenstein, for US$22m worth of shares, at about US$75.27 per share. That means that an insider was selling shares at slightly below the current price (US$83.28). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 52% of Glen Hauenstein's stake.
Insiders in Delta Air Lines didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Delta Air Lines
I will like Delta Air Lines better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Delta Air Lines insiders own about US$285m worth of shares (which is 0.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Delta Air Lines Tell Us?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Delta Air Lines.
But note: Delta Air Lines may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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