Delek US (NYSE:DK) Sees Strong Trading Volume - Still a Buy?

Key Points

• Delek US shares saw a 137% surge in trading volume, with roughly 3.67 million shares changing hands; the stock last traded at $66.15, below its prior close of $66.91.
• Analysts maintain a consensus “Moderate Buy” rating with a $65.45 target price, although opinions range from “Strong Buy” to “Hold.” Raymond James and Wells Fargo recently raised their price targets to $90 and $82, respectively.
• Delek US delivered strong quarterly results, reporting $5.48 EPS versus a $2.67 estimate and revenue of $4.09 billion, up 47.9% year over year. The company also pays a $1.02 annualized dividend, yielding approximately 1.5%.

Shares of Delek US Holdings, Inc. (NYSE:DK - Get Free Report) saw an uptick in trading volume on Friday. Approximately 3,674,300 shares traded hands during trading, an increase of 137% from the previous session's volume of 1,550,899 shares. The stock last traded at $66.1450 and had previously closed at $66.91.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on DK. Citigroup reiterated a "neutral" rating on shares of Delek US in a report on Thursday, August 6th. Raymond James Financial upped their price target on Delek US from $72.00 to $90.00 and gave the stock an "outperform" rating in a research note on Monday, September 14th. Wells Fargo & Company increased their price objective on Delek US from $59.00 to $82.00 and gave the company an "overweight" rating in a report on Tuesday, September 1st. JPMorgan Chase & Co. raised their price objective on Delek US from $57.00 to $62.00 and gave the company a "neutral" rating in a research note on Tuesday, July 14th. Finally, Zacks Research upgraded Delek US from a "hold" rating to a "strong-buy" rating in a report on Friday, June 26th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $65.45.

Delek US Stock Performance

The stock has a market cap of $4.06 billion, a price-to-earnings ratio of 18.59, a PEG ratio of 0.36 and a beta of 0.59. The firm has a fifty day simple moving average of $69.04 and a 200 day simple moving average of $53.89. The company has a current ratio of 0.76, a quick ratio of 0.47 and a debt-to-equity ratio of 7.53.

Delek US (NYSE:DK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.67 by $2.81. Delek US had a net margin of 1.86% and a return on equity of 109.03%. The firm had revenue of $4.09 billion during the quarter, compared to analyst estimates of $3.44 billion. During the same quarter in the prior year, the business posted ($0.56) earnings per share. The company's quarterly revenue was up 47.9% compared to the same quarter last year. As a group, sell-side analysts expect that Delek US Holdings, Inc. will post 16.06 earnings per share for the current year.

Delek US Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Monday, August 3rd were paid a dividend of $0.2550 per share. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $1.02 dividend on an annualized basis and a dividend yield of 1.5%. Delek US's payout ratio is 28.65%.

Insider Buying and Selling

In other news, EVP Amber Russell sold 5,392 shares of the firm's stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $75.50, for a total value of $407,096.00. Following the completion of the transaction, the executive vice president owned 35,670 shares in the company, valued at $2,693,085. This trade represents a 13.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Vicky Sutil sold 6,397 shares of the business's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $71.50, for a total transaction of $457,385.50. Following the transaction, the director owned 26,407 shares in the company, valued at $1,888,100.50. This represents 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 quarter, insiders sold 168,377 shares of company stock valued at $11,339,985. 3.56% of the stock is owned by company insiders.

Institutional Trading of Delek US

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Tidal Investments LLC bought a new stake in Delek US during the second quarter worth $334,000. WINTON GROUP Ltd boosted its position in Delek US by 445.3% during the 2nd quarter. WINTON GROUP Ltd now owns 57,800 shares of the oil and gas company's stock worth $2,937,000 after buying an additional 47,200 shares during the period. Integrated Wealth Concepts LLC bought a new stake in Delek US during the 2nd quarter worth approximately $61,000. Squarepoint Ops LLC increased its position in Delek US by 110.9% in the 2nd quarter. Squarepoint Ops LLC now owns 176,773 shares of the oil and gas company's stock valued at $8,982,000 after acquiring an additional 92,957 shares during the period. Finally, Allworth Financial LP raised its stake in shares of Delek US by 30.7% during the second quarter. Allworth Financial LP now owns 600 shares of the oil and gas company's stock valued at $30,000 after acquiring an additional 141 shares during the last quarter. Institutional investors and hedge funds own 97.01% of the company's stock.

About Delek US

Delek US Holdings, Inc NYSE: DK is a downstream energy company engaged primarily in petroleum refining, wholesale fuel marketing and logistics. The company produces transportation fuels and other refined petroleum products, including gasoline, diesel, jet fuel and asphalt.

Delek US operates refineries in the southern United States, including facilities in Texas, Arkansas and Louisiana. Its refining operations are supported by crude oil gathering, transportation, storage and other logistics activities conducted through Delek Logistics Partners, a publicly traded master limited partnership that is managed and partially owned by Delek US.

Founded in 2001 and headquartered in Brentwood, Tennessee, Delek US serves regional markets across the central and southeastern United States.

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