Delek US (NYSE:DK) Sets New 12-Month High - What's Next?

Key Points

• Shares hit a new 52-week high — DK traded as high as $49.17 (last at $48.18) even though analysts' consensus rating is "Hold" with an average target of $44.23.
• Quarterly results beat expectations — Delek US reported EPS of $0.08 versus a consensus of ($1.42) and revenue of $2.65 billion versus $2.33 billion, with a positive return on equity of 22.9%.
• Dividend announced and insiders selling — the company declared a $0.255 quarterly dividend (annualized $1.02, ~2.1% yield; ex-dividend May 1) while insiders sold 172,095 shares (~$7.26M) over the past three months.

Shares of Delek US Holdings, Inc. (NYSE:DK - Get Free Report) reached a new 52-week high on Tuesday . The stock traded as high as $49.17 and last traded at $48.1810, with a volume of 156599 shares traded. The stock had previously closed at $48.04.

Analysts Set New Price Targets

Several research analysts have weighed in on DK shares. TD Cowen cut their price objective on Delek US from $60.00 to $44.00 and set a "hold" rating on the stock in a research report on Monday, April 27th. Zacks Research upgraded Delek US from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, April 29th. Morgan Stanley set a $41.00 target price on Delek US in a research note on Monday. Citigroup boosted their target price on Delek US from $33.00 to $44.00 and gave the company a "neutral" rating in a research note on Monday, April 13th. Finally, JPMorgan Chase & Co. lowered their target price on Delek US from $42.00 to $38.00 and set a "neutral" rating on the stock in a research note on Thursday, January 15th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $44.23.

Delek US Stock Performance

The company has a debt-to-equity ratio of 10.51, a quick ratio of 0.49 and a current ratio of 0.76. The company has a market capitalization of $3.02 billion, a P/E ratio of -54.08, a price-to-earnings-growth ratio of 0.43 and a beta of 0.63. The business has a 50 day moving average of $41.70 and a 200-day moving average of $36.73.

Delek US (NYSE:DK - Get Free Report) last released its quarterly earnings data 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. 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 period in the previous year, the company posted ($2.32) EPS. The firm's revenue for the quarter was up .4% compared to the same quarter last year. On average, sell-side analysts predict that Delek US Holdings, Inc. will post 3.66 EPS for the current fiscal year.

Delek US Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 8th. Stockholders of record on Friday, May 1st will be issued a dividend of $0.255 per share. The ex-dividend date of this dividend is Friday, May 1st. This represents a $1.02 annualized dividend and a dividend yield of 2.1%. Delek US's payout ratio is presently -112.09%.

Insiders Place Their Bets

In other news, EVP Reuven Spiegel sold 20,000 shares of the firm's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $42.84, for a total transaction of $856,800.00. Following the sale, the executive vice president owned 48,530 shares in the company, valued at approximately $2,079,025.20. This trade represents a 29.18% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Denise Clark Mcwatters sold 11,988 shares of the company's stock in a transaction on Friday, March 13th. The stock was sold at an average price of $41.33, for a total transaction of $495,464.04. Following the completion of the transaction, the executive vice president owned 74,196 shares of the company's stock, valued at $3,066,520.68. This trade represents a 13.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 172,095 shares of company stock valued at $7,257,409 over the last three months. Corporate 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 modified their holdings of the company. Brown Brothers Harriman & Co. purchased a new position in shares of Delek US during the 3rd quarter valued at about $27,000. Caitong International Asset Management Co. Ltd raised 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 buying an additional 432 shares in the last quarter. EverSource Wealth Advisors LLC raised 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 buying 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 about $40,000. Finally, Focus Partners Wealth purchased a new position in shares of Delek US during the 3rd quarter valued at about $44,000. 97.01% of the stock is currently 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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