Delek US Holdings, Inc. Declares Quarterly Dividend of $0.26 (NYSE:DK)

Key Points

• Delek US Holdings declared a quarterly dividend of $0.255 per share, payable on August 10 to shareholders of record on August 3, with an annualized yield of about 1.6%.
• The company’s dividend history is mixed: it has raised its dividend in each of the last two years, but its current payout ratio is -48.1%, indicating earnings do not currently cover the dividend.
• Delek US reported a strong latest quarter, posting $0.08 EPS versus an expected loss of $1.42 and revenue of $2.65 billion, while analysts now forecast $6.39 EPS for the current fiscal year.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report) declared a quarterly dividend on Thursday, July 23rd. Investors of record on Monday, August 3rd will be given a dividend of 0.255 per share by the oil and gas company on Monday, August 10th. This represents a c) annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Monday, August 3rd.

Delek US has increased its dividend by an average of 0.0%annually over the last three years and has increased its dividend annually for the last 2 consecutive years. Delek US has a dividend payout ratio of -48.1% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Delek US to earn $2.59 per share next year, which means the company should continue to be able to cover its $1.02 annual dividend with an expected future payout ratio of 39.4%.

Delek US Stock Performance

Shares of DK stock opened at $64.74 on Friday. The stock has a fifty day moving average price of $49.94 and a 200 day moving average price of $42.22. The stock has a market cap of $3.97 billion, a PE ratio of -71.14, a P/E/G ratio of 0.35 and a beta of 0.58. Delek US has a 1 year low of $19.81 and a 1 year high of $68.93. The company has a debt-to-equity ratio of 10.51, a quick ratio of 0.49 and a current ratio of 0.76.

Delek US (NYSE:DK - Get Free Report) last posted its earnings results on Wednesday, April 29th. The oil and gas company reported $0.08 earnings per share for the quarter, beating the consensus estimate of ($1.42) by $1.50. Delek US had a positive return on equity of 22.90% and a negative net margin of 0.48%.The company had revenue of $2.65 billion for the quarter, compared to analyst estimates of $2.33 billion. During the same quarter in the prior year, the company earned ($2.32) earnings per share. Delek US's revenue was up .4% compared to the same quarter last year. Sell-side analysts forecast that Delek US will post 6.39 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director William J. Finnerty sold 5,000 shares of Delek US stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $51.50, for a total value of $257,500.00. Following the completion of the transaction, the director directly owned 34,805 shares in the company, valued at approximately $1,792,457.50. This trade represents a 12.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Vicky Sutil sold 1,871 shares of Delek US stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $48.00, for a total transaction of $89,808.00. Following the completion of the transaction, the director directly owned 29,368 shares of the company's stock, valued at approximately $1,409,664. This represents a 5.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 39,270 shares of company stock valued at $1,828,718 over the last three months. Company insiders own 3.56% of the company's stock.

Hedge Funds Weigh In On Delek US

A number of hedge funds and other institutional investors have recently bought and sold shares of DK. ION Fund Management Ltd bought a new position in shares of Delek US during the fourth quarter worth about $52,427,000. Norges Bank bought a new stake in shares of Delek US in the 4th quarter worth $48,374,000. Arrowstreet Capital Limited Partnership raised its position in Delek US by 6,300.8% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,306,269 shares of the oil and gas company's stock worth $42,153,000 after acquiring an additional 1,285,861 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Delek US by 1,516.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 996,059 shares of the oil and gas company's stock worth $29,544,000 after buying an additional 934,448 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund lifted its holdings in shares of Delek US by 1,173.2% during the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 954,900 shares of the oil and gas company's stock valued at $28,322,000 after purchasing an additional 879,900 shares during the last quarter. 97.01% of the stock is currently owned by institutional investors and hedge funds.

Delek US Company Profile

Delek US Holdings, Inc NYSE: DK is an independent downstream energy company engaged in the refining, logistics, and marketing of petroleum products. Headquartered in Brentwood, Tennessee, the company operates a network of inland refineries, storage terminals and pipelines, and convenience store locations. Delek US focuses on converting crude oil into a variety of finished products, including gasoline, diesel, jet fuel, asphalt and renewable fuels, serving wholesale and retail customers across the United States.

In its refining segment, Delek US owns and operates four inland refineries located in Texas and Arkansas.

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