Delek US (NYSE:DK) Sets New 52-Week High - Still a Buy?

Key Points

• Delek US shares hit a new 52-week high, trading as high as $54.17 and recently around $52.52, reflecting strong recent momentum in the stock.
• Analyst sentiment is mixed but generally constructive: several firms raised price targets, and the current consensus rating is Hold with an average target of $46.08.
• The company recently reported better-than-expected quarterly earnings, posting $0.08 EPS versus a consensus loss estimate and revenue of $2.65 billion, while also paying a quarterly dividend of $0.255 per share.

Shares of Delek US Holdings, Inc. (NYSE:DK - Get Free Report) reached a new 52-week high during trading on Monday . The company traded as high as $54.17 and last traded at $52.5190, with a volume of 1138065 shares. The stock had previously closed at $52.61.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on DK. Morgan Stanley increased their target price on shares of Delek US from $41.00 to $45.00 and gave the company an "equal weight" rating in a report on Friday, June 12th. Raymond James Financial boosted their price target on Delek US from $47.00 to $54.00 and gave the stock an "outperform" rating in a research note on Wednesday, March 25th. Citigroup raised their price objective on Delek US from $33.00 to $44.00 and gave the company a "neutral" rating in a research note on Monday, April 13th. Mizuho lifted their price objective on Delek US from $54.00 to $60.00 and gave the stock an "outperform" rating in a report on Wednesday, May 27th. Finally, Weiss Ratings downgraded Delek US from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $46.08.

Delek US Price 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 50-day moving average of $45.56 and a 200-day moving average of $39.29. The stock has a market capitalization of $3.27 billion, a price-to-earnings ratio of -58.68, a P/E/G ratio of 0.32 and a beta of 0.58.

Delek US (NYSE:DK - Get Free Report) last announced its earnings results on Wednesday, April 29th. The oil and gas company reported $0.08 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 firm had revenue of $2.65 billion for the quarter, compared to analysts' expectations of $2.33 billion. During the same quarter in the prior year, the firm earned ($2.32) EPS. Delek US's quarterly revenue was up .4% on a year-over-year basis. As a group, equities research analysts expect that Delek US Holdings, Inc. will post 5.58 earnings per share for the current fiscal year.

Delek US Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, May 8th. Shareholders of record on Friday, May 1st were issued a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Friday, May 1st. Delek US's dividend payout ratio is -112.09%.

Insider Activity at Delek US

In other news, Director William J. Finnerty sold 5,000 shares of Delek US stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $51.50, for a total transaction of $257,500.00. Following the completion of the sale, the director directly owned 34,805 shares in the company, valued at $1,792,457.50. The trade was a 12.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Robert G. Wright sold 10,720 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $47.07, for a total transaction of $504,590.40. Following the completion of the transaction, the executive vice president directly owned 48,148 shares of the company's stock, valued at approximately $2,266,326.36. This represents a 18.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 39,270 shares of company stock worth $1,828,718 over the last three months. Company insiders own 3.56% of the company's stock.

Institutional Inflows and Outflows

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