AREX Capital Management LP Makes New Investment in Delek US Holdings, Inc. $DK

Key Points

• AREX Capital Management LP has made a new investment in Delek US Holdings, acquiring 15,000 shares valued at approximately $226,000, representing 0.5% of its total holdings.
• Delek US reported a quarterly revenue of $2.76 billion, surpassing analyst expectations of $2.68 billion, despite experiencing a 16.4% decline compared to the previous year.
• The company recently announced a quarterly dividend of $0.255, resulting in an annualized dividend yield of 3.3%.

AREX Capital Management LP acquired a new stake in shares of Delek US Holdings, Inc. (NYSE:DK - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 15,000 shares of the oil and gas company's stock, valued at approximately $226,000. Delek US comprises 0.5% of AREX Capital Management LP's holdings, making the stock its 12th biggest holding.

A number of other institutional investors have also recently made changes to their positions in the company. CWM LLC boosted its stake in Delek US by 100.9% during the 1st quarter. CWM LLC now owns 2,318 shares of the oil and gas company's stock valued at $35,000 after purchasing an additional 1,164 shares during the last quarter. Creative Financial Designs Inc. ADV bought a new stake in shares of Delek US during the 1st quarter valued at $47,000. GAMMA Investing LLC increased its position in 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 worth $63,000 after buying an additional 3,746 shares in the last quarter. State of Wyoming bought a new stake in Delek US during the 1st quarter worth approximately $95,000. Finally, Farther Finance Advisors LLC lifted its stake in shares of Delek US by 77.4% during the 1st quarter. Farther Finance Advisors LLC now owns 7,118 shares of the oil and gas company's stock valued at $110,000 after buying an additional 3,105 shares in the last quarter. Hedge funds and other institutional investors own 97.01% of the company's stock.

Delek US Trading Up 11.6%

Shares of Delek US stock opened at $30.93 on Wednesday. The stock has a market capitalization of $1.86 billion, a P/E ratio of -2.52 and a beta of 1.09. The company has a debt-to-equity ratio of 10.48, a quick ratio of 0.50 and a current ratio of 0.80. The stock's 50-day simple moving average is $23.59 and its 200 day simple moving average is $18.82. Delek US Holdings, Inc. has a 52-week low of $11.02 and a 52-week high of $31.00.

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

Delek US Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, August 18th. Stockholders of record on Monday, August 11th were paid a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend was Monday, August 11th. Delek US's payout ratio is -8.30%.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Mizuho upgraded shares of Delek US from a "neutral" rating to an "outperform" rating and upped their target price for the stock from $22.00 to $23.00 in a research report on Tuesday, May 13th. TD Cowen cut their price objective on Delek US from $18.00 to $15.00 and set a "sell" rating on the stock in a research report on Friday, August 8th. The Goldman Sachs Group raised their price objective on Delek US from $15.00 to $17.00 and gave the stock a "neutral" rating in a report on Friday, May 23rd. Citigroup restated a "neutral" rating and issued a $30.00 price target (up previously from $15.00) on shares of Delek US in a report on Wednesday, July 16th. Finally, Raymond James Financial boosted their price target on shares of Delek US from $23.00 to $28.00 and gave the company an "outperform" rating in a report on Tuesday, July 15th. Two analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $21.67.

Delek US Profile

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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