Freedom Broker Initiates Coverage on Delek US (NYSE:DK)

Key Points

• Freedom Broker initiated coverage of Delek US with a “hold” rating and an $86 price target, implying 13.54% upside from the previous close. MarketBeat’s consensus view is “Moderate Buy,” with an average target of $67.17.
• Delek US reported strong quarterly results, posting $5.48 in EPS versus the $2.67 consensus estimate and $4.09 billion in revenue, up 47.9% year over year.
• Insiders sold 163,377 shares worth approximately $11.1 million during the last quarter, while hedge funds and other institutions own 97.01% of the company’s outstanding stock.

Investment analysts at Freedom Broker started coverage on shares of Delek US (NYSE:DK - Get Free Report) in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage set a "hold" rating and a $86.00 price target on the oil and gas company's stock. Freedom Broker's price target suggests a potential upside of 13.54% from the stock's previous close.

Other equities research analysts also recently issued reports about the company. Citigroup restated a "neutral" rating on shares of Delek US in a research note on Thursday, August 6th. Weiss Ratings upgraded shares of Delek US from a "sell (d+)" rating to a "hold (c+)" rating in a research note on Thursday, August 6th. Mizuho raised their price objective on shares of Delek US from $60.00 to $66.00 and gave the stock an "outperform" rating in a report on Tuesday, August 11th. The Goldman Sachs Group boosted their target price on shares of Delek US from $73.00 to $83.00 and gave the company a "buy" rating in a research report on Tuesday, August 18th. Finally, Wells Fargo & Company upped their target price on shares of Delek US from $59.00 to $82.00 and gave the company an "overweight" rating in a report on Tuesday, September 1st. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $67.17.

Delek US Price Performance

NYSE DK opened at $75.75 on Wednesday. The business's fifty day moving average price is $70.22 and its 200-day moving average price is $55.58. The stock has a market capitalization of $4.64 billion, a price-to-earnings ratio of 21.28, a PEG ratio of 0.38 and a beta of 0.62. The company has a debt-to-equity ratio of 7.53, a current ratio of 0.76 and a quick ratio of 0.47. Delek US has a 1-year low of $25.85 and a 1-year high of $82.27.

Delek US (NYSE:DK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $5.48 EPS for the quarter, topping the consensus estimate of $2.67 by $2.81. The company had revenue of $4.09 billion during the quarter, compared to analyst estimates of $3.44 billion. Delek US had a return on equity of 109.03% and a net margin of 1.86%.Delek US's revenue was up 47.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.56) earnings per share. On average, equities analysts predict that Delek US will post 15.54 earnings per share for the current year.

Insider Activity

In related news, CEO Avigal Soreq sold 80,000 shares of the business's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $66.51, for a total transaction of $5,320,800.00. Following the completion of the transaction, the chief executive officer directly owned 231,486 shares in the company, valued at approximately $15,396,133.86. The trade was a 25.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Vicky Sutil sold 6,397 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $71.50, for a total transaction of $457,385.50. Following the completion of the sale, the director directly owned 26,407 shares of the company's stock, valued at $1,888,100.50. This represents a 19.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 163,377 shares of company stock worth $11,082,485. 3.56% of the stock is currently owned by corporate insiders.

Institutional Trading of Delek US

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Allworth Financial LP bought a new position in Delek US in the 2nd quarter worth $30,000. Integrated Wealth Concepts LLC bought a new stake in Delek US during the second quarter valued at about $61,000. Rockefeller Capital Management L.P. raised its holdings in Delek US by 1,327.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,955 shares of the oil and gas company's stock valued at $58,000 after acquiring an additional 1,818 shares during the period. Caitong International Asset Management Co. Ltd raised its holdings in Delek US by 350.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,037 shares of the oil and gas company's stock valued at $60,000 after acquiring an additional 1,585 shares during the period. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Delek US in the second quarter valued at about $127,000. 97.01% of the stock is owned by hedge funds and other institutional investors.

Delek US Company Profile

Delek US Holdings, Inc is an independent downstream energy company headquartered in Brentwood, Tennessee. The company operates petroleum refineries and related logistics assets, producing transportation fuels and other refined petroleum products for commercial and wholesale customers.

Delek's refining operations have included facilities in the U.S. Gulf Coast and Mid-Continent regions, with assets in Texas, Arkansas and Louisiana. Its products may include gasoline, diesel, jet fuel, asphalt and other refined products.

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