Delta Insider Bostock Is Buying

Major airlines have been strong performers over the last year or so, as bulls have been reviewing not only fairly good results but also the potential advantages of industry consolidation as US Airways (LCC) merges with American Airlines. Between early August 2012 and the end of July 2013, Delta (DAL) was up more than 120%, US Airways rose 69%, and United Continental (UAL) increased a little more than 80%. However -- perhaps perked up by the public suggestion that this consolidation would result in higher prices -- federal regulators sued in an attempt to prevent the merger earlier this month, sending airline stocks down on the day.

Delta is still down since the beginning of the month, but we recently recorded a member of the company's board of directors, Roy Bostock, directly purchasing 10,000 shares of the stock at prices just below $20 per share. Studies generally show a small outperformance effect for stocks bought by insiders, which increases somewhat when multiple insiders have been buying; in fact, another Delta insider had bought shares in late July....545 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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