15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers

6. Delta Air Lines, Inc. (NYSE:DAL)

Number of Hedge Fund Holders: 84

Short Interest:  3.39%

Delta Air Lines, Inc. offers scheduled air transportation for cargo and passengers. It generates its revenue through the Refinery and Airline segments. The company also provides repair, aircraft maintenance, engineering support, and overhaul services. Jefferies downgraded the stock last month from Buy to Hold. The firm is cautious as the consumer sentiment remains weak, and tariffs could continue to impact investor outlook negatively.

Delta Air Lines exceeded earnings expectations in Q1 financial results. But due to macroeconomic conditions, it lowered its full-year guidance. CEO Ed Bastian said that growth has come to a slowdown amid widespread economic uncertainty surrounding global trade.

CEO Ed Bastian mentioned:

“In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year to flat over last year, while actively managing costs and capital expenditures.”

As per the adjusted guidance, the firm expects revenue growth from -2% to +2% year-over-year for Q2. Operating margins are projected to be in the range between 11% to 14%. Low single-digit year-over-year growth is anticipated in costs for nonfuel units. To balance supply and demand, the company plans to decrease capacity growth in the latter half of the year.