This Insider Has Just Sold Shares In Delta Air Lines

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$3.8m worth of stock at a price of US$56.33 per share. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.

See our latest analysis for Delta Air Lines

Delta Air Lines Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, Glen Hauenstein, for US$4.9m worth of shares, at about US$49.05 per share. That means that even when the share price was below the current price of US$58.46, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 31% of Glen Hauenstein's holding.

Over the last year we saw more insider selling of Delta Air Lines shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Delta Air Lines

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Delta Air Lines insiders own about US$137m worth of shares (which is 0.4% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Delta Air Lines Tell Us?

Insiders haven't bought Delta Air Lines stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Delta Air Lines is growing earnings. 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. At Simply Wall St, we found 2 warning signs for Delta Air Lines that deserve your attention before buying any shares.

Of course Delta Air Lines may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.