Delek US (NYSE:DK) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Better-than-expected quarter: Delek US reported Q results of $0.08 EPS vs. an expected ($0.60) and revenue of $2.65B vs. $2.36B expected, sending the stock to gap up (closed $41.04, opened $43.53 and later traded near $46.22, up ~12.1%).
• The company declared a quarterly dividend of $0.255 (annualized $1.02) with an ex-dividend date of May 1 and a yield of about 2.2%, while the dividend payout ratio remains deeply negative at -291.43%.
• Significant insider selling: CEO Avigal Soreq sold 50,000 shares and EVP Reuven Spiegel sold 20,000 shares, with insiders selling 172,095 shares (~$7.26M) over the last 90 days; institutional investors nonetheless own roughly 97.01% of the stock.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report)'s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $41.04, but opened at $43.53. Delek US shares last traded at $46.2230, with a volume of 159,440 shares changing hands.

The oil and gas company reported $0.08 earnings per share for the quarter, topping analysts' consensus estimates of ($0.60) by $0.68. The firm had revenue of $2.65 billion during the quarter, compared to analysts' expectations of $2.36 billion. Delek US had a negative net margin of 0.21% and a negative return on equity of 13.55%. Delek US's quarterly revenue was up .4% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($2.32) EPS.

Delek US Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 8th. Stockholders of record on Friday, May 1st will be issued a $0.255 dividend. This represents a $1.02 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Friday, May 1st. Delek US's dividend payout ratio (DPR) is currently -291.43%.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Wall Street Zen raised Delek US from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. Morgan Stanley lifted their price target on shares of Delek US from $38.00 to $40.00 and gave the company an "equal weight" rating in a research report on Friday, April 24th. Weiss Ratings upgraded shares of Delek US from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday. Mizuho lifted their price target on shares of Delek US from $51.00 to $54.00 and gave the company an "outperform" rating in a research report on Tuesday, March 17th. Finally, TD Cowen reduced their price target on shares of Delek US from $60.00 to $44.00 and set a "hold" rating for the company in a research report on Monday. Five equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $44.15.

Insider Activity at Delek US

In other news, CEO Avigal Soreq sold 50,000 shares of the company's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $41.08, for a total transaction of $2,054,000.00. Following the completion of the transaction, the chief executive officer owned 251,678 shares of the company's stock, valued at $10,338,932.24. This represents a 16.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Reuven Spiegel sold 20,000 shares of the company's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $42.84, for a total transaction of $856,800.00. Following the transaction, the executive vice president directly owned 48,530 shares of the company's stock, valued at approximately $2,079,025.20. This represents a 29.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 172,095 shares of company stock worth $7,257,409. Corporate insiders own 3.56% of the company's stock.

Institutional Trading of Delek US

Several large investors have recently added to or reduced their stakes in the stock. Meitav Investment House Ltd. acquired a new stake in Delek US in the 1st quarter valued at $2,130,000. Meridian Investment Counsel Inc. acquired a new stake in Delek US during the 1st quarter valued at $225,000. Abel Hall LLC acquired a new stake in Delek US in the first quarter valued at $200,000. Y Intercept Hong Kong Ltd boosted its stake in Delek US by 281.5% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 45,471 shares of the oil and gas company's stock valued at $2,049,000 after acquiring an additional 33,553 shares during the last quarter. Finally, Pictet Asset Management Holding SA boosted its stake in Delek US by 19.0% during the 1st quarter. Pictet Asset Management Holding SA now owns 10,519 shares of the oil and gas company's stock valued at $474,000 after acquiring an additional 1,679 shares during the last quarter. 97.01% of the stock is currently owned by institutional investors and hedge funds.

Delek US Trading Up 12.1%

The company has a market cap of $2.75 billion, a price-to-earnings ratio of -132.09, a price-to-earnings-growth ratio of 0.57 and a beta of 0.68. The firm has a 50-day moving average price of $41.21 and a 200 day moving average price of $36.55. The company has a current ratio of 0.82, a quick ratio of 0.53 and a debt-to-equity ratio of 5.89.

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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