Delek US (NYSE:DK) Shares Down 8.4% - Here's Why

Key Points

• Delek US shares fell 8.4% to about $60.65 in mid-day trading, with volume below the stock’s average session volume.
• Despite the decline, the company reported strong quarterly results, earning $5.48 per share versus $2.67 expected and generating $4.09 billion in revenue, up 47.9% year over year.
• Analyst sentiment is mixed: the consensus rating remains “Hold” with a $51.92 price target, while insiders have sold roughly $1.83 million worth of shares over the past 90 days; Delek also maintains a quarterly dividend of $0.255 per share.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report) shares dropped 8.4% on Wednesday . The company traded as low as $60.56 and last traded at $60.6460. 884,120 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 1,387,118 shares. The stock had previously closed at $66.20.

Wall Street Analysts Forecast Growth

DK has been the topic of several recent research reports. 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. The Goldman Sachs Group upped their price target on shares of Delek US from $58.00 to $73.00 and gave the company a "buy" rating in a research report on Friday, July 17th. TD Cowen lifted their price objective on Delek US from $58.00 to $76.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. Mizuho boosted their target price on Delek US from $54.00 to $60.00 and gave the company an "outperform" rating in a research note on Wednesday, May 27th. Finally, Wall Street Zen lowered Delek US from a "strong-buy" rating to a "buy" rating in a research note on Saturday. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $51.92.

Delek US Stock Performance

The company has a 50 day moving average of $53.34 and a two-hundred day moving average of $44.22. The company has a debt-to-equity ratio of 10.51, a current ratio of 0.76 and a quick ratio of 0.49. The company has a market capitalization of $3.72 billion, a PE ratio of -66.66, a PEG ratio of 1.74 and a beta of 0.57.

Delek US (NYSE:DK - Get Free Report) last issued its earnings results on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share for the quarter, topping analysts' consensus estimates of $2.67 by $2.81. Delek US had a positive return on equity of 22.90% and a negative net margin of 0.48%.The business had revenue of $4.09 billion during the quarter, compared to analyst estimates of $3.44 billion. During the same quarter in the previous year, the firm earned ($0.56) EPS. Delek US's revenue was up 47.9% on a year-over-year basis. As a group, equities research analysts predict that Delek US Holdings, Inc. will post 8.32 earnings per share for the current year.

Delek US Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 10th. Investors of record on Monday, August 3rd will be issued a $0.255 dividend. The ex-dividend date of this dividend is Monday, August 3rd. This represents a $1.02 dividend on an annualized basis and a yield of 1.7%. Delek US's dividend payout ratio is presently -112.09%.

Insider Activity

In other news, EVP Robert G. Wright sold 10,720 shares of the stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $47.07, for a total value of $504,590.40. Following the completion of the sale, the executive vice president directly owned 48,148 shares in the company, valued at $2,266,326.36. This represents a 18.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Vicky Sutil sold 3,061 shares of the company's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $46.00, for a total transaction of $140,806.00. Following the sale, the director directly owned 31,239 shares of the company's stock, valued at approximately $1,436,994. This represents a 8.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 39,270 shares of company stock worth $1,828,718. Insiders own 3.56% of the company's stock.

Institutional Trading of Delek US

Several hedge funds have recently made changes to their positions in DK. ION Fund Management Ltd acquired a new position in Delek US in the fourth quarter valued at about $52,427,000. Norges Bank purchased a new position in shares of Delek US during the fourth quarter worth about $48,374,000. Arrowstreet Capital Limited Partnership grew its stake in Delek US by 6,300.8% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,306,269 shares of the oil and gas company's stock worth $42,153,000 after buying an additional 1,285,861 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Delek US by 1,516.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 996,059 shares of the oil and gas company's stock valued at $29,544,000 after buying an additional 934,448 shares during the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund grew its position in shares of Delek US by 1,173.2% during the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 954,900 shares of the oil and gas company's stock worth $28,322,000 after acquiring an additional 879,900 shares during the last quarter. Hedge funds and other institutional investors own 97.01% of the company's stock.

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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