Delek US (NYSE:DK) Given New $44.00 Price Target at TD Cowen

Key Points

• TD Cowen cut its price target on Delek US from $60 to $44 and maintains a "hold" rating, with the firm’s objective implying roughly an 8% upside; the consensus analyst target is about $44.15 and the average rating is "Hold".
• Quarterly results surprised on EPS: Delek US reported $0.44 EPS (beating the -$0.19 estimate by $0.63) but missed revenue expectations ($2.43B vs. $2.55B), and the stock traded up to $40.72 (≈+2.7%).
• Insider selling and leverage are notable risks: Insiders sold 172,095 shares (~$7.26M) in the past 90 days, insiders own 3.56% of shares, and the company carries high leverage (debt-to-equity ~5.89) with a negative net margin and ROE.

Delek US (NYSE:DK - Get Free Report) had its price target reduced by research analysts at TD Cowen from $60.00 to $44.00 in a report released on Monday,Benzinga reports. The firm currently has a "hold" rating on the oil and gas company's stock. TD Cowen's price objective suggests a potential upside of 8.06% from the company's previous close.

Other analysts have also recently issued reports about the stock. Wall Street Zen upgraded shares of Delek US from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. The Goldman Sachs Group upgraded shares of Delek US from a "neutral" rating to a "buy" rating and raised their price target for the company from $43.00 to $55.00 in a report on Friday, April 10th. Weiss Ratings restated a "sell (d-)" rating on shares of Delek US in a report on Wednesday, January 21st. Morgan Stanley increased their price objective on shares of Delek US from $38.00 to $40.00 and gave the company an "equal weight" rating in a research report on Friday. Finally, Piper Sandler decreased their price objective on shares of Delek US from $47.00 to $40.00 and set a "neutral" rating for the company in a research report on Thursday, January 8th. Five equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $44.15.

Delek US Stock Up 2.7%

Shares of NYSE:DK traded up $1.06 during trading on Monday, reaching $40.72. The stock had a trading volume of 728,611 shares, compared to its average volume of 1,514,011. Delek US has a one year low of $12.80 and a one year high of $48.32. The company has a market capitalization of $2.44 billion, a P/E ratio of -116.26, a PEG ratio of 0.97 and a beta of 0.68. The company has a current ratio of 0.82, a quick ratio of 0.53 and a debt-to-equity ratio of 5.89. The firm's 50-day simple moving average is $40.97 and its 200 day simple moving average is $36.45.

Delek US (NYSE:DK - Get Free Report) last released its quarterly earnings results on Friday, February 27th. The oil and gas company reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of ($0.19) by $0.63. Delek US had a negative net margin of 0.21% and a negative return on equity of 13.55%. The business had revenue of $2.43 billion for the quarter, compared to analysts' expectations of $2.55 billion. During the same period last year, the business earned ($2.54) EPS. The company's revenue was up 2.3% compared to the same quarter last year. As a group, research analysts expect that Delek US will post 1.38 EPS for the current fiscal year.

Insider Activity at Delek US

In other Delek US news, EVP Joseph Israel sold 38,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $40.65, for a total transaction of $1,544,700.00. Following the completion of the transaction, the executive vice president directly owned 55,623 shares of the company's stock, valued at approximately $2,261,074.95. This trade represents a 40.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Avigal Soreq sold 50,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $41.08, for a total transaction of $2,054,000.00. Following the transaction, the chief executive officer directly owned 251,678 shares of the company's stock, valued at $10,338,932.24. This represents a 16.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 172,095 shares of company stock worth $7,257,409 in the last ninety days. 3.56% of the stock is owned by company insiders.

Hedge Funds Weigh In On Delek US

Institutional investors have recently bought and sold shares of the business. Brown Brothers Harriman & Co. purchased a new position in Delek US during the 3rd quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd increased its holdings in shares of Delek US by 95.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 884 shares of the oil and gas company's stock valued at $26,000 after purchasing an additional 432 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of Delek US by 173.4% during the 4th quarter. EverSource Wealth Advisors LLC now owns 968 shares of the oil and gas company's stock valued at $29,000 after purchasing an additional 614 shares in the last quarter. Torren Management LLC purchased a new position in shares of Delek US during the 4th quarter valued at approximately $40,000. Finally, Focus Partners Wealth purchased a new position in shares of Delek US during the 3rd quarter valued at approximately $44,000. 97.01% of the stock is owned by hedge funds and other institutional investors.

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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