Delek US (NYSE:DK) Stock Price Down 5.6% Following Insider Selling

Key Points

• Delek US shares fell 5.6% on Thursday after insider-selling activity, with the stock trading as low as $42.04 after closing at $44.59 the previous day.
• Multiple executives and a director sold shares, including Director Laurie Z. Tolson and EVPs Reuven Spiegel and Robert G. Wright, with some transactions tied to pre-arranged Rule 10b5-1 plans.
• Despite the selloff, analysts currently have a Hold consensus on Delek US, with a market consensus price target of $44.23, while the company recently beat quarterly earnings expectations.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report) shares dropped 5.6% on Thursday following insider selling activity. The company traded as low as $42.04 and last traded at $42.0790. Approximately 454,142 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 1,493,135 shares. The stock had previously closed at $44.59.

Specifically, Director Laurie Z. Tolson sold 4,921 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $46.30, for a total transaction of $227,842.30. Following the completion of the transaction, the director directly 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 hyperlink. Also, EVP Reuven Spiegel sold 10,000 shares of the firm's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $44.36, for a total value of $443,600.00. Following the completion of the transaction, the executive vice president directly owned 48,372 shares in the company, valued at $2,145,781.92. This trade represents a 17.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, EVP Robert G. Wright sold 10,720 shares of Delek US stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $47.07, for a total value of $504,590.40. Following the completion of the transaction, the executive vice president directly owned 48,148 shares in the company, valued at approximately $2,266,326.36. This trade represents a 18.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. UBS Group boosted their price objective on Delek US from $42.00 to $48.00 and gave the stock a "neutral" rating in a research report on Friday, April 10th. Zacks Research upgraded Delek US from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 29th. Citigroup boosted their price objective on Delek US from $33.00 to $44.00 and gave the stock a "neutral" rating in a research report on Monday, April 13th. Wall Street Zen upgraded Delek US from a "buy" rating to a "strong-buy" rating in a research report on Monday. Finally, Scotiabank upgraded Delek US to a "hold" rating in a research report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $44.23.

Delek US Stock Performance

The stock has a market cap of $2.58 billion, a P/E ratio of -46.04, a PEG ratio of 0.34 and a beta of 0.63. The company has a fifty day moving average of $43.38 and a 200 day moving average of $37.54. The company has a debt-to-equity ratio of 10.51, a current ratio of 0.76 and a quick ratio of 0.49.

Delek US (NYSE:DK - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The oil and gas company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.42) by $1.50. The company had revenue of $2.65 billion for the quarter, compared to analysts' expectations of $2.33 billion. Delek US had a positive return on equity of 22.90% and a negative net margin of 0.48%.The firm's revenue was up .4% on a year-over-year basis. During the same quarter in the prior year, the company earned ($2.32) earnings per share. On average, equities analysts predict that Delek US Holdings, Inc. will post 4.54 earnings per share for the current fiscal year.

Delek US Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 8th. Shareholders of record on Friday, May 1st were paid a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Friday, May 1st. Delek US's payout ratio is -112.09%.

Institutional Trading of Delek US

Large investors have recently added to or reduced their stakes in the company. Brown Brothers Harriman & Co. acquired a new stake in Delek US during the 3rd quarter valued at $27,000. Caitong International Asset Management Co. Ltd raised its position in shares of Delek US by 95.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 884 shares of the oil and gas company's stock valued at $26,000 after buying an additional 432 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in shares of Delek US by 173.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 968 shares of the oil and gas company's stock valued at $29,000 after buying an additional 614 shares during the last quarter. Torren Management LLC acquired a new position in shares of Delek US during the fourth quarter valued at about $40,000. Finally, Focus Partners Wealth acquired a new position in Delek US in the third quarter worth about $44,000. 97.01% of the stock is owned by institutional investors and hedge funds.

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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