Delek US (NYSE:DK) Hits New 52-Week High - Should You Buy?

Key Points

• Delek US shares hit a new 52-week high on Monday, trading as high as $50.10 as the stock rose about 3.3% intraday. The move came alongside stronger-than-average attention on the name.
• The company’s latest earnings beat expectations, with EPS of $0.08 versus an expected loss of $1.42 and revenue of $2.65 billion topping estimates. Analysts now forecast full-year EPS of 4.96.
• Despite the stock’s rally, Wall Street’s view remains mixed: Delek US has a consensus Hold rating and an average price target of $44.69, below the current trading level. Recent insider selling and a high debt-to-equity ratio also stand out as potential concerns.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report) reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $50.10 and last traded at $50.18, with a volume of 82278 shares trading hands. The stock had previously closed at $48.28.

Analyst Upgrades and Downgrades

DK has been the subject of several analyst reports. Scotiabank raised shares of Delek US to a "hold" rating in a report on Friday, March 27th. Citigroup increased their target price on Delek US from $33.00 to $44.00 and gave the stock a "neutral" rating in a research report on Monday, April 13th. Wall Street Zen upgraded Delek US from a "buy" rating to a "strong-buy" rating in a research report on Monday, May 18th. Wells Fargo & Company boosted their price objective on Delek US from $54.00 to $59.00 and gave the company an "overweight" rating in a research note on Tuesday, March 31st. Finally, TD Cowen dropped their price objective on Delek US from $60.00 to $44.00 and set a "hold" rating on the stock in a report on Monday, April 27th. Five research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Delek US presently has a consensus rating of "Hold" and an average price target of $44.69.

Delek US Stock Up 3.3%

The company has a quick ratio of 0.49, a current ratio of 0.76 and a debt-to-equity ratio of 10.51. The company has a market cap of $3.06 billion, a PE ratio of -54.80, a P/E/G ratio of 0.33 and a beta of 0.60. The stock has a 50-day moving average of $43.85 and a 200-day moving average of $37.97.

Delek US (NYSE:DK - Get Free Report) last posted its earnings results on Wednesday, April 29th. The oil and gas company reported $0.08 EPS for the quarter, topping 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 business had revenue of $2.65 billion during the quarter, compared to analysts' expectations of $2.33 billion. During the same period in the previous year, the business earned ($2.32) earnings per share. The firm's revenue was up .4% on a year-over-year basis. Sell-side analysts predict that Delek US Holdings, Inc. will post 4.96 earnings per share for the current fiscal year.

Delek US Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 8th. Stockholders 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 2.0%. The ex-dividend date of this dividend was Friday, May 1st. Delek US's payout ratio is currently -112.09%.

Insiders Place Their Bets

In related news, EVP Robert G. Wright sold 10,720 shares of the stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $47.07, for a total value of $504,590.40. Following the transaction, the executive vice president owned 48,148 shares of the company's stock, valued at $2,266,326.36. This represents a 18.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Denise Clark Mcwatters sold 11,988 shares of the firm's stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $41.33, for a total value of $495,464.04. Following the sale, the executive vice president owned 74,196 shares in the company, valued at $3,066,520.68. The trade was a 13.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 58,601 shares of company stock valued at $2,631,960 over the last quarter. Insiders own 3.56% of the company's stock.

Institutional Trading of Delek US

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

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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