Delta Air Lines, Inc. (NYSE:DAL) is seeing heavy trading today, following the company's second-quarter earnings release. Delta posted better-than-expected earnings for the quarter, and increased its dividend by 15%. On the other hand, the company had to lower its full-year profit outlook because of rising fuel prices. DAL shares are reacting to the latter, though, last seen down 0.3% at $49.67.
Most airline stocks have struggled to break out in 2018, and DAL stock has been no different. On a long-term basis, the shares may appear more attractive. Despite being down 12% year-to-date, the equity is holding support from the 24-month moving average, which lands in the $48-$49 range, and has served as a floor for the shares since late 2016.
In the meantime, Delta is facing rising short interest levels. The number of shares held by these bears jumped almost 45% in the last two reporting periods to 21 million -- the highest total in almost two years. This accounts for 3.2% of DAL's float, equaling 3.4 times its average daily trading volume.
But analysts are very bullish on the airline stock. Only one of the 13 in coverage has anything less than a "buy" rating in place, and the average 12-month price target sits at $69.53 -- deep into record-high territory.