Delek US Holdings, Inc. (NYSE:DK) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Delek US has a consensus analyst rating of "Hold" from 15 brokerages, with an average 12-month price target of $45.00. Analyst views are mixed, with two sells, eight holds, and five buys.
• The company recently reported stronger-than-expected quarterly results, posting EPS of $0.08 versus estimates for a loss, and revenue of $2.65 billion above expectations. Management also guided that analysts expect $5.01 EPS for the current fiscal year.
• Delek US continues to return cash to shareholders with a quarterly dividend of $0.255 per share, or $1.02 annualized, for a 2.2% yield. However, insiders have recently sold shares, and the stock has moved close to its 52-week high of $50.33.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report) has been given a consensus recommendation of "Hold" by the fifteen research firms that are presently covering the stock, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and five have given a buy rating to the company. The average 12 month target price among brokers that have covered the stock in the last year is $45.00.

A number of equities research analysts have recently issued reports on DK shares. Mizuho upped their target price on shares of Delek US from $54.00 to $60.00 and gave the company an "outperform" rating in a research note on Wednesday, May 27th. TD Cowen cut their target price on shares of Delek US from $60.00 to $44.00 and set a "hold" rating on the stock in a research note on Monday, April 27th. Zacks Research lowered shares of Delek US from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 28th. Morgan Stanley increased their target price on shares of Delek US from $41.00 to $45.00 and gave the stock an "equal weight" rating in a report on Friday. Finally, Wall Street Zen raised shares of Delek US from a "buy" rating to a "strong-buy" rating in a report on Monday, May 18th.

Delek US Stock Performance

Shares of Delek US stock opened at $47.26 on Monday. The firm has a market cap of $2.90 billion, a PE ratio of -51.94, a price-to-earnings-growth ratio of 0.32 and a beta of 0.60. The firm's 50-day simple moving average is $44.02 and its 200-day simple moving average is $38.26. 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 has a 1 year low of $19.81 and a 1 year high of $50.33.

Delek US (NYSE:DK - Get Free Report) last issued its earnings results on Wednesday, April 29th. The oil and gas company reported $0.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.42) by $1.50. The business had revenue of $2.65 billion for the quarter, compared to analyst estimates of $2.33 billion. Delek US had a negative net margin of 0.48% and a positive return on equity of 22.90%. The company's revenue for the quarter was up .4% on a year-over-year basis. During the same quarter in the prior year, the business posted ($2.32) EPS. Equities analysts forecast that Delek US will post 5.01 earnings per share for the current fiscal year.

Delek US Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 8th. Shareholders of record on Friday, May 1st were issued a dividend of $0.255 per share. This represents a $1.02 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend was Friday, May 1st. Delek US's dividend payout ratio is -112.09%.

Insider Activity at Delek US

In other Delek US news, Director Shlomo Zohar sold 7,343 shares of the stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $46.00, for a total transaction of $337,778.00. Following the sale, the director directly owned 6,646 shares of the company's stock, valued at approximately $305,716. This represents a 52.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Vicky Sutil sold 1,871 shares of the 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 sale, the director directly owned 29,368 shares in the company, valued at $1,409,664. This trade represents a 5.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 46,613 shares of company stock valued at $2,136,496 in the last ninety days. 3.56% of the stock is owned by insiders.

Institutional Trading of Delek US

A number of institutional investors and hedge funds have recently modified their holdings of the business. NewEdge Advisors LLC acquired a new stake in shares of Delek US during the first quarter worth $290,000. Converium Capital Inc. acquired a new stake in shares of Delek US during the first quarter worth $9,855,000. Bank of America Corp DE raised 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 worth $38,138,000 after purchasing an additional 458,004 shares during the period. California State Teachers Retirement System grew its position in shares of Delek US by 24.6% during the first quarter. California State Teachers Retirement System now owns 71,346 shares of the oil and gas company's stock worth $3,216,000 after acquiring an additional 14,068 shares during the last quarter. Finally, Empyrean Capital Partners LP bought a new position in shares of Delek US during the first quarter worth about $9,406,000. 97.01% of the stock is owned by institutional investors and hedge funds.

About Delek US

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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