Delek US (NYSE:DK) Shares Gap Up - Here's Why

Key Points

• Delek US Holdings, Inc. (NYSE:DK) experienced a notable increase in share price, opening at $33.52 after closing the previous day at $32.29.
• Recent analyst ratings show a mixed outlook, with price target upgrades from firms like Wells Fargo and Wolfe Research, setting targets as high as $40.00 and a consensus rating of "Hold" with an average target of $27.69.
• The company reported a quarterly loss of ($0.56) earnings per share, beating expectations, while revenue was also above estimates at $2.76 billion, even though it marked a 16.4% decline year-over-year.

Shares of Delek US Holdings, Inc. (NYSE:DK - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $32.29, but opened at $33.52. Delek US shares last traded at $32.99, with a volume of 83,662 shares traded.

Analyst Upgrades and Downgrades

DK has been the subject of a number of recent analyst reports. Wells Fargo & Company lifted their target price on shares of Delek US from $11.00 to $15.00 and gave the stock an "underweight" rating in a research note on Wednesday, June 11th. Citigroup restated a "neutral" rating and set a $30.00 price objective (up from $15.00) on shares of Delek US in a research note on Wednesday, July 16th. Cowen upgraded shares of Delek US from a "sell" rating to a "hold" rating in a research note on Friday, September 19th. Wolfe Research upgraded shares of Delek US from a "peer perform" rating to an "outperform" rating and set a $40.00 price objective for the company in a research note on Wednesday, September 3rd. Finally, TD Cowen upgraded shares of Delek US from a "sell" rating to a "hold" rating and lifted their price objective for the company from $15.00 to $28.00 in a research note on Friday, September 19th. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, Delek US currently has a consensus rating of "Hold" and an average price target of $27.69.

Delek US Price Performance

The company has a quick ratio of 0.50, a current ratio of 0.80 and a debt-to-equity ratio of 10.48. The stock's 50-day simple moving average is $26.94 and its two-hundred day simple moving average is $21.17. The company has a market capitalization of $1.94 billion, a price-to-earnings ratio of -2.63 and a beta of 1.01.

Delek US (NYSE:DK - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The oil and gas company reported ($0.56) earnings per share for the quarter, topping analysts' consensus estimates of ($0.92) by $0.36. The company had revenue of $2.76 billion during the quarter, compared to analysts' expectations of $2.68 billion. Delek US had a negative net margin of 7.11% and a negative return on equity of 79.27%. The firm's revenue for the quarter was down 16.4% on a year-over-year basis. During the same period in the prior year, the business posted ($0.92) earnings per share. Equities research analysts predict that Delek US Holdings, Inc. will post -5.5 earnings per share for the current year.

Delek US Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 18th. Shareholders of record on Monday, August 11th were given a dividend of $0.255 per share. The ex-dividend date was Monday, August 11th. This represents a $1.02 dividend on an annualized basis and a yield of 3.2%. Delek US's dividend payout ratio is currently -8.30%.

Insiders Place Their Bets

In other Delek US news, CFO Robert G. Wright sold 7,135 shares of the company's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $29.24, for a total transaction of $208,627.40. Following the completion of the transaction, the chief financial officer directly owned 48,294 shares in the company, valued at approximately $1,412,116.56. This represents a 12.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Delek US

Hedge funds have recently modified their holdings of the business. CWM LLC raised its position in shares of Delek US by 100.9% in the first quarter. CWM LLC now owns 2,318 shares of the oil and gas company's stock valued at $35,000 after buying an additional 1,164 shares during the last quarter. AlphaQuest LLC raised its position in shares of Delek US by 7,331.8% in the second quarter. AlphaQuest LLC now owns 1,635 shares of the oil and gas company's stock valued at $35,000 after buying an additional 1,613 shares during the last quarter. Creative Financial Designs Inc. ADV acquired a new stake in shares of Delek US in the first quarter valued at about $47,000. GAMMA Investing LLC raised its position in shares of Delek US by 907.0% in the first quarter. GAMMA Investing LLC now owns 4,159 shares of the oil and gas company's stock valued at $63,000 after buying an additional 3,746 shares during the last quarter. Finally, State of Wyoming acquired a new stake in shares of Delek US in the first quarter valued at about $95,000. 97.01% of the stock is currently owned by institutional investors and hedge funds.

About Delek US

Delek US Holdings, Inc engages in the integrated downstream energy business in the United States. The company operates through Refining, Logistics, and Retail segments. The Refining segment processes crude oil and other feedstock for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminal.

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