Freestone Grove Partners LP Takes $12.90 Million Position in Delek US Holdings, Inc. $DK

Key Points

• Freestone Grove Partners acquired 253,868 Delek US shares worth approximately $12.9 million, joining other institutions that purchased stakes during the second quarter. Institutional investors now own 97.01% of the company.
• Delek US reported quarterly EPS of $5.48, well above the $2.67 consensus estimate, while revenue rose 47.9% year over year to $4.09 billion. The company also maintains a quarterly dividend of $0.255 per share, yielding about 1.4% annually.
• Analyst sentiment is mixed but improving, with several firms raising price targets and two research providers assigning “strong-buy” ratings; however, the overall consensus remains Hold, with an average target price of $53.15 versus the stock’s recent $70.43 price.

Freestone Grove Partners LP bought a new position in shares of Delek US Holdings, Inc. (NYSE:DK - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 253,868 shares of the oil and gas company's stock, valued at approximately $12,899,000. Freestone Grove Partners LP owned 0.41% of Delek US at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Man Group plc bought a new position in Delek US in the 2nd quarter valued at $1,543,000. Jupiter Topco LLC purchased a new stake in shares of Delek US in the second quarter worth $1,401,000. Hsbc Holdings PLC purchased a new stake in shares of Delek US in the second quarter worth $1,568,000. PDT Partners LLC bought a new stake in Delek US during the second quarter valued at $15,667,000. Finally, Canada Pension Plan Investment Board bought a new stake in Delek US during the second quarter valued at $17,336,000. 97.01% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Delek US news, CEO Avigal Soreq sold 80,000 shares of Delek US stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $66.51, for a total transaction of $5,320,800.00. Following the transaction, the chief executive officer directly owned 231,486 shares of the company's stock, valued at approximately $15,396,133.86. This trade represents a 25.68% decrease in their ownership of the stock. The transaction was disclosed in a legal 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, EVP Mark Wayne Hobbs sold 20,000 shares of the company's stock in a transaction on 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 sale, the executive vice president directly owned 104,326 shares of the company's stock, valued at $6,738,416.34. This trade represents a 16.09% decrease in their position. 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 three months, insiders sold 151,077 shares of company stock valued at $9,929,931. Insiders own 3.56% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on DK. JPMorgan Chase & Co. boosted their target price on Delek US from $57.00 to $62.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 14th. Wall Street Zen upgraded shares of Delek US from a "buy" rating to a "strong-buy" rating in a research report on Sunday, August 9th. Raymond James Financial raised their target price on shares of Delek US from $60.00 to $70.00 and gave the company an "outperform" rating in a research note on Monday, July 13th. Mizuho lifted their target price on shares of Delek US from $60.00 to $66.00 and gave the company an "outperform" rating in a research report on Tuesday, August 11th. Finally, Zacks Research raised shares of Delek US from a "hold" rating to a "strong-buy" rating in a research note on Friday, June 26th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $53.15.

Delek US Price Performance

DK opened at $70.43 on Friday. The stock has a 50-day moving average price of $60.10 and a 200-day moving average price of $48.55. Delek US Holdings, Inc. has a 12-month low of $25.85 and a 12-month high of $72.00. The company has a current ratio of 0.76, a quick ratio of 0.47 and a debt-to-equity ratio of 7.53. The stock has a market capitalization of $4.31 billion, a P/E ratio of 19.78, a PEG ratio of 1.54 and a beta of 0.57.

Delek US (NYSE:DK - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $5.48 EPS for the quarter, beating the consensus estimate of $2.67 by $2.81. The firm had revenue of $4.09 billion for the quarter, compared to analyst estimates 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 was up 47.9% on a year-over-year basis. During the same period in the prior year, the company earned ($0.56) EPS. Equities analysts predict that Delek US Holdings, Inc. will post 10.1 earnings per share for the current fiscal year.

Delek US Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, August 10th. Shareholders of record on Monday, August 3rd were given a dividend of $0.255 per share. This represents a $1.02 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Monday, August 3rd. Delek US's dividend payout ratio (DPR) is presently 28.65%.

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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