Is it a Good Move to Invest in Delta Air Lines (DAL)?

Investment management company Miller Value Partners recently released its Q2, 2022 investment letter, a copy of which can be downloaded here. The firm faced notable challenges due to continued volatility in the last couple of years. In the second quarter, Miller Opportunity fund was down by -29.3%, extending its first half return to -31.08% net of fees. Over the last 10 years, the fund generated an annualized return of 11.83%. Take a look at the fund’s top 5 holdings to know their best picks for 2022.

In the Q2 2022 investment letter, the firm analyzed and explained the reasons for its underperformance. The letter talks about Delta Air Lines, Inc. (NYSE:DAL), an airline company that operates internationally. As per the letter, Delta Air Lines, Inc. (NYSE:DAL) is trading below the industry valuation matrix. Delta Air Lines, Inc. (NYSE:DAL) is based in Atlanta, Georgia, and has a market capitalization of $19.646 billion. The stock of Delta Air Lines, Inc. (NYSE:DAL) closed at $30.64 per share on 26^th July 2022. Delta Air Lines, Inc. (NYSE:DAL)  had a 3.37% return for the past month while its 12-month return plunged to -25.81%.

Here is what Miller Value Partners specifically said about Delta Air Lines, Inc. (NYSE:DAL)  in its Q2 2022 investor’s letter:

“Delta (NYSE:DAL) trades below 4x next year’s EV/EBITDAR, the favored industry valuation metric that incorporates aircraft leases and debt balances. That’s only happened one other time in the past 20+ years, in June 2016. Delta gained 50% in the following 12 months from that point.”

Pixabay/Public Domain

Although Miller Value Partners is invested in Delta Air Lines, Inc. (NYSE:DAL) the stock isn’t on the list of 30 Most Popular Stocks Among Hedge Funds. At the end of the first quarter, Delta Air Lines, Inc. (NYSE:DAL) was in 55 hedge fund portfolios, up from 47 in Q4, 2021. Delta Air Lines, Inc. (NYSE:DAL) shares lost 24.62% of their value over the last 52 weeks.

In February, we published Miller Value Partners’ views on Delta Air Lines, Inc. (NYSE:DAL) in another article. If you want to read more investor letters from hedge funds and other leading investors, check out our hedge fund investor letters 2022 page.

Disclosure: None. This article is originally published at Insider Monkey.