The shares of Delta Airlines (DAL) are roaring back today, last seen up 5.7% to trade at $32.99, after oil prices pivoted lower. More specifically, West Texas Intermediate (WTI) crude prices fell more than 10% this afternoon, giving consumer-related and travel stocks a much-needed boost. Surging oil prices have been a cause for concern on Wall Street over the last few weeks, especially after the U.S. banned Russian oil imports following its invasion of Ukraine, stoking fears of a global economic slowdown.
Now eyeing its best single-day percentage jump since December, Delta Airlines stock is bouncing off the $29 area – its lowest level since November 2020. The security shed 12.8% on Monday, after another one of its rallies was turned down at the $46 mark in mid-February. Year-over-year, DAL is down 30.6%.
The brokerage bunch remains optimistic towards Delta Airlines stock. In fact, 11 of the 13 analysts in question call the equity a “strong buy,” while just two say “hold.” What’s more, the 12-month consensus target price of $51.44 is a 55.8% premium to current levels.
The options pits echo that optimism. Short-term options traders have been more call-biased than usual, per the stock’s Schaeffer’s put/call open interest ratio (SOIR) of 0.41, which sits in the low 3rd percentile of the security’s annual range.