- Team Buffett's new stake in airline stocks surprised many.
- Short sellers have been betting against airline stocks recently.
- One airline has seen a particularly sharp rise in short interest.
News that Berkshire Hathaway Inc. has bought into the airline stocks came as a surprise to many investors and Warren Buffett watchers, given Buffett's well-known aversion to the industry. Perhaps it came as a surprise to short sellers as well, who increased bets against several of these stocks between the October 14 and October 31 settlement dates. That is especially true for Delta Air Lines, Inc. DAL.
Oh, Delta
Back in mid-October, Delta offered an earnings beat for the third quarter. The share price ended the two-week short interest period more than 4 percent higher, while the S&P 500 was down fractionally. In the past week, shares are up more than 7 percent, yet they are still more than 5 percent lower year-to-date.
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