Peter Carter, Delta Air Lines' (DAL 0.27%) executive VP of external affairs, executed a sale of 17,550 shares on July 16, 2025, for a total consideration of approximately $1.0 million in an open market transaction.
Transaction summary
| Metric | Value |
|---|---|
| Shares traded | 17,550 |
| Transaction value | $1.0 million (SEC Form 4, filed July 16, 2025) |
| Post-transaction shares | 191,442 |
| Post-transaction value | $10.8 million (as of July 16, 2025) |
Key questions
How does the transaction size compare to the insider's historical trading?
The sale of 17,550 shares closely aligns with Carter's recent median trade size of approximately 17,747 shares, based on historical data, indicating no significant deviation from past activity.
What is the current market value of the insider's remaining holdings?
Following the transaction, the insider retains 191,442 shares, with an approximate market value of $10.8 million as of July 16, 2025.
What is the significance of the transaction relative to total insider ownership?
This transaction reduces the insider's holdings but leaves an estimated 0.03% ownership.
How does the transaction timing relate to share price performance?
The sale occurred with shares priced at $57.19, close to the current price of $56.29, following a 25.3% one-year total return, suggesting execution during a period of relative strength.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $36.75 billion |
| Revenue (TTM) | $61.64 billion |
| Net income (TTM) | $3.46 billion |
| Dividend yield | 0.82% |
Company snapshot
- Delta Air Lines generates revenue primarily through scheduled air passenger services, cargo transport, and ancillary offerings such as aircraft maintenance, engineering, and vacation packages.
- The company operates a network-based business model centered on domestic and international hubs, leveraging a large fleet and diversified distribution channels, including digital platforms and travel agencies.
- Primary customers are individual travelers and cargo shippers, and the company maintains a strong presence in both U.S. and international markets.
Delta Air Lines, Inc. is one of the world's largest airlines, operating a fleet of approximately 1,200 aircraft and serving major domestic and international hubs. The company combines a scale-driven network with diversified revenue streams, including passenger and cargo services as well as ancillary offerings. Delta's competitive advantage stems from its extensive route network and large fleet.
Foolish take
Peter Carter serves as Delta's chief external affairs officer and also its chief legal officer. He appears to have taken advantage of the company's recently strong stock performance to sell just over $1 million worth of stock.
While it's never good news to see an insider selling stock, every individual has their own financial circumstances that they need to attend to. Moreover, this sale comes a week after Delta reported a solid second quarter, which saw the airline resume providing full-year guidance, albeit at a lower level than it had forecast at the start of the year.
Delta declined to offer full-year guidance when it reported first-quarter earnings in April after the imposition of tariffs on U.S. trade partners damaged consumer confidence and hit bookings. However, the travel environment has stabilized since then. "The environment has been stable since resetting to a lower growth rate earlier this year," CEO Ed Bastian recently noted.
Delta and other airlines have made capacity adjustments in line with a weaker market, which Bastian expects will result in flat earnings year over year in the third quarter, accompanied by low-single-digit percentage revenue growth.
The full-year guidance for free cash flow in the $3 billion to $4 billion range makes the stock look cheap (based on the company's current market cap of $36.75 billion) and makes this insider selling seem somewhat surprising.
Glossary
Insider: An executive, director, or major shareholder with access to non-public company information.
Open market transaction: The purchase or sale of securities on a public exchange, not through private agreements.
SEC Form 4: A regulatory filing disclosing insider trades of company stock.
Post-transaction: The state of holdings or values after a specific trade or transaction has occurred.
Ownership percentage: The proportion of a company’s total shares held by an individual or entity.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Median trade size: The middle value of all trade sizes in a data set, used to show typical transaction volume.
Ancillary offerings: Additional services or products offered alongside a company’s main business, such as maintenance or vacation packages.
Network-based business model: A strategy relying on interconnected hubs and routes to maximize efficiency and coverage.
Distribution channels: The various methods a company uses to deliver products or services to customers.
TTM: The 12-month period ending with the most recent quarterly report.
