Is Delta Air Lines (DAL) The Most Crowded Hedge Fund Stock That is Targeted by Short Sellers?

We recently published a list of 15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers. In this article, we are going to take a look at where Delta Air Lines, Inc. (NYSE:DAL) stands against other most crowded hedge fund stocks that are targeted by short sellers.

Hedge funds piling into a stock is a signal of conviction. After all, if institutional investors are backing a company, there has to be a good reason for it, right?

Things get interesting when the same stock ends up with a high short interest. Where some investors back the company to become successful, others bet on its downfall. This contradiction is often eagerly tracked by investors, as it can potentially lead to explosive moves to either side.

Consider, for instance, a scenario where a stock with a high short interest and a high hedge fund holding starts going up. As everyone rushes to buy more of the already popular stock, short sellers rush to close their positions, triggering a strong bull rally.

We decided to shortlist stocks that were the most likely candidates for such a rally. To come up with our list of 15 most crowded hedge fund stocks that are targeted by short sellers, we only considered stocks with a market cap of at least $1 billion and a short interest of at least 3%. We then ranked these stocks by the number of hedge funds that have the stock in their portfolio.

Delta Air Lines, Inc. (NYSE:DAL)

Number of Hedge Fund Holders: 84

Short Interest:  3.39%

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

Overall, DAL ranks 6th on our list of most crowded hedge fund stocks that are targeted by short sellers. While we acknowledge the potential of DAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DAL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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