Mizuho Reaffirms "Neutral" Rating for Delek US (NYSE:DK)

Key Points

• Mizuho reiterated its “Neutral” rating on Delek US and raised its price target from $66 to $83, implying approximately 9.9% upside from the stock’s $75.52 opening price.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $68.58, despite several firms assigning Buy or Outperform ratings and raising their targets.
• Delek US reported strong quarterly results, posting $5.48 in EPS versus the $2.67 consensus and $4.09 billion in revenue, up 47.9% year over year; however, insiders sold $11.1 million of shares over the past three months.

Delek US (NYSE:DK - Get Free Report)'s stock had its "neutral" rating reiterated by equities researchers at Mizuho in a research note issued on Thursday, MarketBeat reports. They presently have a $83.00 price objective on the oil and gas company's stock, up from their previous price objective of $66.00. Mizuho's price target indicates a potential upside of 9.90% from the stock's current price.

A number of other research analysts also recently issued reports on the company. Wells Fargo & Company boosted their price target on Delek US from $59.00 to $82.00 and gave the company an "overweight" rating in a report on Tuesday, September 1st. Raymond James Financial lifted their price objective on Delek US from $72.00 to $90.00 and gave the company an "outperform" rating in a research report on Monday, September 14th. The Goldman Sachs Group increased their target price on Delek US from $73.00 to $83.00 and gave the stock a "buy" rating in a research report on Tuesday, August 18th. TD Cowen raised their target price on Delek US from $76.00 to $90.00 and gave the company a "buy" rating in a research note on Monday, September 14th. Finally, Morgan Stanley lifted their price target on Delek US from $45.00 to $81.00 and gave the company an "equal weight" rating in a research report on Monday, September 14th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Delek US has a consensus rating of "Hold" and an average price target of $68.58.

Delek US Price Performance

Shares of Delek US stock opened at $75.52 on Thursday. The company has a debt-to-equity ratio of 7.53, a quick ratio of 0.47 and a current ratio of 0.76. The stock has a market capitalization of $4.62 billion, a price-to-earnings ratio of 21.21, a price-to-earnings-growth ratio of 0.38 and a beta of 0.62. The company has a fifty day moving average of $70.43 and a 200-day moving average of $55.79. Delek US has a 52-week low of $25.85 and a 52-week high of $82.27.

Delek US (NYSE:DK - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.67 by $2.81. Delek US had a return on equity of 109.03% and a net margin of 1.86%.The firm had revenue of $4.09 billion for the quarter, compared to analysts' expectations of $3.44 billion. During the same period last year, the firm earned ($0.56) earnings per share. The company's revenue for the quarter was up 47.9% compared to the same quarter last year. Equities research analysts expect that Delek US will post 15.54 EPS for the current year.

Insider Buying and Selling

In other Delek US news, EVP Reuven Spiegel sold 7,500 shares of the business's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $73.21, for a total value of $549,075.00. Following the sale, the executive vice president directly owned 28,935 shares of the company's stock, valued at approximately $2,118,331.35. The trade was a 20.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Amber Russell sold 5,392 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $75.50, for a total value of $407,096.00. Following the completion of the sale, the executive vice president directly owned 35,670 shares in the company, valued at approximately $2,693,085. This represents a 13.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 163,377 shares of company stock worth $11,082,485 over the last three months. Corporate insiders own 3.56% of the company's stock.

Hedge Funds Weigh In On Delek US

Several large investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in Delek US during the 2nd quarter valued at about $275,233,000. Arrowstreet Capital Limited Partnership raised its holdings in Delek US by 26.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,596,093 shares of the oil and gas company's stock worth $71,936,000 after buying an additional 335,892 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund lifted its stake in shares of Delek US by 19.0% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,136,720 shares of the oil and gas company's stock worth $51,232,000 after buying an additional 181,820 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of Delek US by 118.0% during the first quarter. Bank of America Corp DE now owns 846,204 shares of the oil and gas company's stock valued at $38,138,000 after buying an additional 458,004 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Delek US during the second quarter valued at approximately $22,987,000. Hedge funds and other institutional investors own 97.01% of the company's stock.

About Delek US

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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