Delta Stock Price Slides 2% As Buffett's Berkshire Unloads Shares

Shares of Delta Air Lines (NYSE:DAL) trade around 2.5% lower in New York today after it was reported that Warren Buffett’s Berkshire Hathaway (NYSE:BRK) sold 18% of its stake in the airline.

Fundamental analysis: Buffett unloads, revenue expected to plummet

According to SEC filings, Berkshire reduced its stake in Delta by 18% for $314 million, selling the stock in the price range of $22.96 and $26.04 per share. Delta stock price currently trades just below the $22 mark.

The sale came in just around the same time as Delta’s CEO Ed Bastian warned that his company needs $60 million a day to get through,& as revenue is expected to collapse by 90% in the second-quarter.

In addition to offloading Delta’s shares, Berkshire also sold around 2.3 million shares of Southwest Airlines for around $74 million on Thursday.

Berkshire Hathaway now owns 59 million shares of Delta. Still, CEO Bastian is upbeat despite the first quarter of 2020, which was “unlike any quarter in Delta’s history”.

Technical analysis: Bears have the new multi-year lows in sight

Despite the bounce that occured in the Delta stock price two weeks ago, shares of the carrier rotated lower again to trade near 6-year lows around the $20 handle, despite the price of $60 per share in February.

You can see in the chart that the price action stopped at the ascending trend line (the red line), which connects the lower highs from the last decade. If broken, the major support block is located around the $15 handle, while the bulls will be targeting $32.50 on any attempt to correct higher.

Summary

Shares of Delta have slid 2% today after reports over the weekend that Buffett’s Berkshire sold 18% of its stake in the carrier for $314 million. Delta stock price now trades around the $20 handle again as the sellers eye a trip towards $15 in the coming days and weeks.