Delek US Holdings, Inc. (NYSE:DK) Declares Dividend Increase - $0.30 Per Share

Key Points

• Delek US raised its quarterly dividend 17.6% to $0.30 per share, payable November 18 to shareholders of record as of November 10. The annualized dividend is $1.20, yielding approximately 1.7%.
• The company reported strong quarterly results, earning $5.48 per share versus the $2.67 analyst consensus, while revenue rose 47.9% year over year to $4.09 billion.
• Dividend coverage is currently weak based on reported earnings, with a payout ratio of -48.1%, although analysts expect future earnings to support the dividend. Institutional investors own 97.01% of Delek US, while insiders have recently sold shares.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report) announced a quarterly dividend on Thursday, October 29th. Shareholders of record on Tuesday, November 10th will be paid a dividend of $0.30 per share by the oil and gas company on Wednesday, November 18th. This represents a $1.20 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Tuesday, November 10th. This is a 17.6% increase from Delek US's previous quarterly dividend of $0.2550.

Delek US has a payout ratio of -48.1% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Delek US to earn $14.03 per share next year, which means the company should continue to be able to cover its $1.02 annual dividend with an expected future payout ratio of 7.3%.

Delek US Stock Performance

Delek US stock opened at $71.07 on Friday. The company has a market cap of $4.35 billion, a price-to-earnings ratio of 19.96, a price-to-earnings-growth ratio of 0.51 and a beta of 0.62. Delek US has a 12 month low of $25.85 and a 12 month high of $82.27. The company has a debt-to-equity ratio of 7.53, a current ratio of 0.76 and a quick ratio of 0.47. The stock's 50-day moving average is $73.81 and its 200-day moving average is $52.59.

Delek US (NYSE:DK - Get Free Report) last issued its earnings results on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.67 by $2.81. The business had revenue of $4.09 billion during the quarter, compared to analysts' expectations of $3.44 billion. Delek US had a return on equity of 109.03% and a net margin of 1.86%. The company's revenue for the quarter was up 47.9% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.56) EPS. Equities analysts anticipate that Delek US will post 18.62 earnings per share for the current year.

Insiders Place Their Bets

In other Delek US news, Director Gary M. Jr. Sullivan sold 27,688 shares of the business's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $69.01, for a total value of $1,910,748.88. Following the transaction, the director owned 32,004 shares in the company, valued at $2,208,596.04. The trade was a 46.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Mark Hobbs sold 20,000 shares of the company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $64.59, for a total transaction of $1,291,800.00. Following the completion of the transaction, the executive vice president directly owned 104,326 shares of the company's stock, valued at approximately $6,738,416.34. The trade was a 16.09% decrease in their ownership of the stock. 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. In the last ninety days, insiders sold 163,377 shares of company stock valued at $11,082,485. Corporate insiders own 3.56% of the company's stock.

Institutional Investors Weigh In On Delek US

Several large investors have recently modified their holdings of DK. BlackRock Inc. purchased a new stake in shares of Delek US during the second quarter worth $275,233,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Delek US by 26.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,596,093 shares of the oil and gas company's stock valued at $71,936,000 after buying an additional 335,892 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund grew its stake in shares of Delek US by 19.0% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,136,720 shares of the oil and gas company's stock valued at $51,232,000 after buying an additional 181,820 shares in the last quarter. Bank of America Corp DE increased its holdings in Delek US by 118.0% in the first quarter. Bank of America Corp DE now owns 846,204 shares of the oil and gas company's stock worth $38,138,000 after buying an additional 458,004 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new position in Delek US in the second quarter worth approximately $22,987,000. 97.01% of the stock is owned by institutional investors.

About Delek US

Delek US Holdings, Inc is a downstream energy company headquartered in Brentwood, Tennessee. The company operates petroleum refineries and related logistics assets, producing and transporting fuels and other refined petroleum products for markets primarily in the southern United States.

Through its refining operations, Delek processes crude oil into products such as gasoline, diesel, jet fuel and asphalt. Its logistics business, conducted in part through Delek Logistics Partners, owns and operates pipelines, crude oil gathering systems, storage terminals, transportation assets and other infrastructure that supports the movement of crude oil and refined products.

Delek has also operated convenience stores and fuel stations, particularly in Texas and neighboring states, under brands including DK and Alon.

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