Some Delta Air Lines, Inc. (NYSE:DAL) shareholders may be a little concerned to see that the Independent Director, David DeWalt, recently sold a substantial US$2.9m worth of stock at a price of US$90.85 per share. That diminished their holding by a very significant 59%, which arguably implies a strong desire to reallocate capital.
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 even when the share price was below the current price of US$91.98, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 52% of Glen Hauenstein's stake.
Delta Air Lines insiders didn't buy any shares over 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!
View our latest analysis for Delta Air Lines
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Insider Ownership Of Delta Air Lines
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Delta Air Lines insiders own 0.5% of the company, worth about US$326m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Delta Air Lines Insider Transactions Indicate?
Insiders sold Delta Air Lines shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.