Paul Jacobson Buys Delta

The Executive VP and CFO buys 25,000 shares

Author's Avatar
Jul 27, 2016
Article's Main Image

Paul Jacobson (Insider Trades), Executive Vice President and CFO of Delta Air Lines Inc. (DAL), bought 25,000 shares of the company on July 25. The average price per share was $38.91, for a total transaction amount of $972,750. Delta Air Lines is a global airline company headquartered in Atlanta, Georgia. The company has a market cap of $28.87 billion.

The number and volume of insider buys decreased from five transactions of 29,000 shares in 2013, to three transactions totaling 5,000 shares in 2014. There were four insider buys totaling 18,415 shares in the following year. Jacobson’s aforementioned transaction is his sole insider buy with DAL since 2013 to date. Jacobson sold 107,000 shares of the company in 13 transactions during the same time frame. His earliest insider sell in November 2013 increased in value by about 40% since then. Another DAL insider, Executive Chairman of the Board, Richard Anderson (Insider Trades), sold 758,000 shares of the company on July 15. The average price per share price was $40.07. Month end price and the number of insider sells were directly related from 2013 to 2015. 02May2017155112.png 02May2017155112.png For more information about insider trades with DAL, click here.

The company reported a GAAP net income of $1.546 billion, or $2.03 per share, in the second quarter of 2016. Net income and earnings per share increased in comparison to the previous year’s second quarter, in which the company reported net income of $1.485 billion, and earnings of $1.83 per share. Total revenue for the second quarter decreased 2.4% to $10.447 billion in 2016, when compared to total revenue in the second quarter of 2015. Delta’s President, Glen Hauenstein, commented that the company’s goal is “positive unit revenues by year end,” which the company plans to achieve by “commercial levers, including an incremental one point reduction in [Delta’s] December quarter capacity levels.” Delta's annual revenue and annual net income increased by 3.93% and 54.06% since 2011. On July 7, Delta Air Lines announced that the U.S. Department of Transportation (DOT) granted the company the authority to resume daily nonstop service to Havana, Cuba, starting fall 2016. The routes are still subject to Cuban regulatory approval.

According to GuruFocus.com information, Delta Air Lines Inc. has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.

George Soros (Trades, Portfolio) sold all his shares of DAL, while Jim Simons (Trades, Portfolio) increased his stake in the company during the first quarter of 2016. Soros sold 1,984,351 shares of the company at an average price per share price of $46.68, after increasing his stake in DAL during the previous two quarters. The total estimated gain of the holding since the second quarter of 2015 is 1%. Simons increased his stake in DAL by 1975.08%, acquiring 1,173,200 shares of the company at an average price per share price of $46.68. The total estimated gain of the holding since the fourth quarter of 2015 is -18%. For more information about guru transactions with DAL, click here.

For more stock trades of gurus in real time, visit GuruFocus’ Real Time Picks, a Premium Feature. Not a Premium Member of GuruFocus? Try it free for 7 days here.