Delek US (NYSE:DK) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down: Delek US opened at $39.96 after a $42.45 close and last traded near $38.33 on Friday with about 88,500 shares changing hands.
• Analyst views are mixed — MarketBeat shows a consensus "Hold" with a $44 target, but individual price targets diverge sharply (e.g., Wells Fargo $59 vs Morgan Stanley $38).
• Key fundamentals raise concerns: negative trailing P/E (-106) and expected -5.5 EPS for the year, high leverage (debt/equity 5.89), low liquidity ratios, a 2.7% dividend yield with a negative payout ratio, and material insider selling recently.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report) shares gapped down before the market opened on Friday . The stock had previously closed at $42.45, but opened at $39.96. Delek US shares last traded at $38.3330, with a volume of 88,503 shares.

Analysts Set New Price Targets

DK has been the subject of several analyst reports. Scotiabank raised Delek US to a "hold" rating in a research note on Friday, March 27th. Morgan Stanley cut their price target on Delek US from $40.00 to $38.00 and set an "equal weight" rating for the company in a research note on Tuesday, January 27th. Wall Street Zen raised Delek US from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. UBS Group boosted their price objective on shares of Delek US from $42.00 to $48.00 and gave the company a "neutral" rating in a research note on Friday, April 10th. Finally, Wells Fargo & Company raised their target price on shares of Delek US from $54.00 to $59.00 and gave the stock an "overweight" rating in a research note on Tuesday, March 31st. Five analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Delek US has a consensus rating of "Hold" and a consensus target price of $44.00.

Delek US Stock Performance

The stock has a 50 day moving average of $40.42 and a two-hundred day moving average of $36.13. The stock has a market capitalization of $2.22 billion, a PE ratio of -106.21, a P/E/G ratio of 0.89 and a beta of 0.68. The company has a debt-to-equity ratio of 5.89, a current ratio of 0.82 and a quick ratio of 0.53.

Delek US (NYSE:DK - Get Free Report) last released its earnings results on Friday, February 27th. The oil and gas company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of ($0.19) by $0.63. Delek US had a negative return on equity of 13.55% and a negative net margin of 0.21%.The company had revenue of $2.43 billion during the quarter, compared to the consensus estimate of $2.55 billion. During the same quarter last year, the company earned ($2.54) earnings per share. Delek US's quarterly revenue was up 2.3% compared to the same quarter last year. Research analysts expect that Delek US Holdings, Inc. will post -5.5 EPS for the current fiscal year.

Delek US Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 9th. Investors of record on Monday, March 2nd were issued a dividend of $0.255 per share. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $1.02 dividend on an annualized basis and a yield of 2.7%. Delek US's payout ratio is currently -291.43%.

Insider Activity at Delek US

In other news, EVP Denise Clark Mcwatters sold 11,988 shares of the business's stock in a transaction that occurred 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 sale, the executive vice president owned 74,196 shares of the company's stock, valued at $3,066,520.68. The trade was a 13.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Reuven Spiegel sold 20,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $42.84, for a total value of $856,800.00. Following the completion of the transaction, the executive vice president directly owned 48,530 shares of the company's stock, valued at $2,079,025.20. The trade was a 29.18% 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 in the last ninety days. Company insiders own 3.56% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. ION Fund Management Ltd acquired a new stake in Delek US during the 4th quarter valued at $52,427,000. Norges Bank acquired a new position in shares of Delek US in the fourth quarter worth $48,374,000. Arrowstreet Capital Limited Partnership lifted its position in shares of Delek US by 6,300.8% in the third 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 acquiring an additional 1,285,861 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Delek US by 1,516.7% during 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 acquiring an additional 934,448 shares during the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund raised its position in shares of Delek US by 1,173.2% in the fourth 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 buying 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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