Delek US (NYSE:DK) Shares Gap Down - Here's What Happened

Key Points

• Delek US shares opened sharply lower, gapping down from a prior close of $47.22 to an open of $44.35 and trading around $44.47, a decline of about 5.7%.
• Recent analyst activity has been mixed: some firms raised targets or ratings, but Zacks downgraded the stock, leaving Delek US with a consensus rating of Hold and an average price target of $45.00.
• The company beat expectations in its latest earnings report, posting $0.08 EPS versus an expected loss and revenue of $2.65 billion, while also paying a quarterly dividend of $0.255 per share.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $47.22, but opened at $44.35. Delek US shares last traded at $44.4740, with a volume of 49,640 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on DK shares. Wall Street Zen raised shares of Delek US from a "buy" rating to a "strong-buy" rating in a research report on Monday, May 18th. Mizuho lifted their target price on shares of Delek US from $54.00 to $60.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 27th. Zacks Research downgraded shares of Delek US from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 28th. Wells Fargo & Company lifted their target price on shares of Delek US from $54.00 to $59.00 and gave the stock an "overweight" rating in a research report on Tuesday, March 31st. Finally, UBS Group lifted their target price on shares of Delek US from $42.00 to $48.00 and gave the stock a "neutral" rating in a research report on Friday, April 10th. Five research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Delek US has an average rating of "Hold" and a consensus price target of $45.00.

Delek US Stock Down 5.7%

The company's 50 day moving average price is $44.02 and its two-hundred day moving average price is $38.26. The firm has a market cap of $2.73 billion, a PE ratio of -49.03, a PEG ratio of 0.32 and a beta of 0.60. The company has a current ratio of 0.76, a quick ratio of 0.49 and a debt-to-equity ratio of 10.51.

Delek US (NYSE:DK - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The oil and gas company reported $0.08 earnings per share for the quarter, topping the consensus estimate of ($1.42) by $1.50. The business had revenue of $2.65 billion for the quarter, compared to analysts' expectations of $2.33 billion. Delek US had a negative net margin of 0.48% and a positive return on equity of 22.90%. The company's revenue was up .4% compared to the same quarter last year. During the same quarter last year, the company posted ($2.32) EPS. On average, equities research analysts expect that Delek US Holdings, Inc. will post 5.01 EPS for the current fiscal year.

Delek US Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, May 8th. Stockholders of record on Friday, May 1st were paid a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Friday, May 1st. Delek US's dividend payout ratio (DPR) is currently -112.09%.

Insider Buying and Selling

In related news, Director Laurie Z. Tolson sold 4,921 shares of the company's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $46.30, for a total value of $227,842.30. Following the completion of the transaction, the director owned 18,226 shares of the company's stock, valued at approximately $843,863.80. This represents a 21.26% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Reuven Spiegel sold 10,000 shares of the company's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $44.36, for a total transaction of $443,600.00. Following the completion of the transaction, the executive vice president directly owned 48,372 shares of the company's stock, valued at $2,145,781.92. This represents a 17.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 46,613 shares of company stock worth $2,136,496 in the last three months. Corporate insiders own 3.56% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of DK. ION Fund Management Ltd bought a new position in Delek US in the 4th quarter worth $52,427,000. Norges Bank bought a new position in shares of Delek US during the 4th quarter valued at about $48,374,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of 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 valued at $42,153,000 after purchasing an additional 1,285,861 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in shares of Delek US by 1,516.7% during the 4th 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 purchasing an additional 934,448 shares during the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund boosted its holdings in shares of Delek US by 1,173.2% during the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 954,900 shares of the oil and gas company's stock valued at $28,322,000 after purchasing an additional 879,900 shares during the last quarter. 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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