Delek US Holdings, Inc. $DK Stock: International Assets Investment Management LLC Boosts Position

Key Points

• Institutional ownership increased: International Assets Investment Management raised its Delek US position by 227.9% to 70,000 shares, while other hedge funds also expanded or initiated positions. Institutions collectively own 97.01% of the company.
• Analyst sentiment remains moderately positive: Delek US has a consensus “Moderate Buy” rating and a $75 average price target, with recent targets ranging from $62 to $90.
• Strong quarter but insider selling: The company reported $5.48 in quarterly EPS, exceeding estimates, and revenue rose 47.9% year over year. However, insiders sold $11.1 million of stock over the past three months, while Delek increased its quarterly dividend to $0.30 per share.

International Assets Investment Management LLC raised its position in Delek US Holdings, Inc. (NYSE:DK - Free Report) by 227.9% during the 3rd quarter, according to its most recent disclosure with the SEC. The fund owned 70,000 shares of the oil and gas company's stock after purchasing an additional 48,655 shares during the period. International Assets Investment Management LLC owned about 0.11% of Delek US worth $4,996,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in DK. WINTON GROUP Ltd grew its stake in Delek US by 445.3% in the 2nd quarter. WINTON GROUP Ltd now owns 57,800 shares of the oil and gas company's stock valued at $2,937,000 after acquiring an additional 47,200 shares during the last quarter. Wellington Management Group LLP acquired a new position in Delek US during the second quarter worth about $10,664,000. Bank of America Corp DE raised its position in Delek US by 118.0% during 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 acquiring an additional 458,004 shares during the last quarter. SummerHaven Investment Management LLC purchased a new stake in shares of Delek US in the third quarter valued at about $2,403,000. Finally, Hsbc Holdings PLC purchased a new stake in shares of Delek US in the second quarter valued at about $1,568,000. Hedge funds and other institutional investors own 97.01% of the company's stock.

Wall Street Analysts Forecast Growth

DK has been the subject of a number of recent research reports. Morgan Stanley raised their price objective on shares of Delek US from $45.00 to $81.00 and gave the stock an "equal weight" rating in a research note on Monday, September 14th. Freedom Broker began coverage on Delek US in a research note on Wednesday, October 7th. They issued a "hold" rating and a $86.00 target price on the stock. Mizuho cut Delek US from an "outperform" rating to a "neutral" rating and increased their target price for the company from $66.00 to $83.00 in a report on Thursday, October 8th. JPMorgan Chase & Co. raised their price target on Delek US from $57.00 to $62.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 14th. Finally, Raymond James Financial boosted their price target on Delek US from $72.00 to $90.00 and gave the stock an "outperform" rating in a report on Monday, September 14th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $75.00.

Insider Transactions at Delek US

In related news, EVP Reuven Spiegel sold 10,000 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $68.21, for a total transaction of $682,100.00. Following the transaction, the executive vice president directly owned 36,435 shares in the company, valued at approximately $2,485,231.35. This represents a 21.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Vicky Sutil sold 6,397 shares of the firm's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $71.50, for a total value of $457,385.50. Following the completion of the sale, the director directly owned 26,407 shares in the company, valued at approximately $1,888,100.50. The trade was a 19.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 163,377 shares of company stock valued at $11,082,485. Corporate insiders own 3.56% of the company's stock.

Delek US Stock Down 0.2%

Shares of NYSE DK opened at $73.39 on Monday. Delek US Holdings, Inc. has a 1 year low of $25.85 and a 1 year high of $82.27. The firm's 50 day moving average price is $74.00 and its 200 day moving average price is $52.81. The firm has a market cap of $4.49 billion, a P/E ratio of 20.62, a price-to-earnings-growth ratio of 0.54 and a beta of 0.61. The company has a debt-to-equity ratio of 7.53, a quick ratio of 0.47 and a current ratio of 0.76.

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

Delek US Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 18th. Stockholders of record on Tuesday, November 10th will be given a $0.30 dividend. This is an increase from Delek US's previous quarterly dividend of $0.2550. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Tuesday, November 10th. Delek US's dividend payout ratio (DPR) is presently 28.65%.

Delek US Company Profile

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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