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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Delta Air Lines, Inc. (NYSE:DAL).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Check out our latest analysis for Delta Air Lines
The Last 12 Months Of Insider Transactions At Delta Air Lines
CEO & Director Edward Bastian made the biggest insider sale in the last 12 months. That single transaction was for US$1.9m worth of shares at a price of US$55.00 each. So we know that an insider sold shares at around the present share price of US$50.18. While their view may have changed since the sale, this is not a particularly positive fact. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price.
Happily, we note that in the last year insiders paid US$1.6m for 31.35k shares. On the other hand they divested 192.03k shares, for US$10m. Over the last year we saw more insider selling of Delta Air Lines shares, than buying. The average sell price was around US$54.32. It’s not particularly great to see insiders were selling shares around current prices. But we don’t put too much weight on the insider selling, since sellers could have personal reasons. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Delta Air Lines Have Bought Stock Recently
It’s good to see that Delta Air Lines insiders have made notable investments in the company’s shares. Specifically, George Mattson bought US$662k worth of shares in that time, and we didn’t record any sales whatsoever. This is a positive in our book as it implies some confidence.