Delek US (NYSE:DK) Shares Climb 3.8% - Still a Buy?

Key Points

• Delek US shares rose 3.8% to about $77.36, although trading volume was 87% below the average session volume.
• Recent quarterly results significantly beat expectations: adjusted earnings were $5.48 per share versus a $2.67 consensus estimate, while revenue increased 47.9% year over year to $4.09 billion.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and several firms raising price targets to $90; however, the average target of $68.58 is below the current share price, and insiders have sold more than $11 million in stock over the past 90 days.

Shares of Delek US Holdings, Inc. (NYSE:DK - Get Free Report) shot up 3.8% during trading on Monday. The company traded as high as $78.10 and last traded at $77.3630. 202,479 shares were traded during trading, a decline of 87% from the average session volume of 1,563,261 shares. The stock had previously closed at $74.51.

Wall Street Analyst Weigh In

Several research analysts have weighed in on DK shares. TD Cowen increased their price target on shares of Delek US from $76.00 to $90.00 and gave the stock a "buy" rating in a research report on Monday, September 14th. Wall Street Zen raised shares of Delek US from a "buy" rating to a "strong-buy" rating in a research report on Sunday, August 9th. Wells Fargo & Company upped their price objective on Delek US from $59.00 to $82.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 1st. Zacks Research upgraded Delek US from a "hold" rating to a "strong-buy" rating in a research note on Friday, June 26th. Finally, Raymond James Financial raised their target price on Delek US from $72.00 to $90.00 and gave the stock an "outperform" rating in a report on Monday, September 14th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $68.58.

Delek US Stock Up 4.2%

The company has a market capitalization of $4.75 billion, a PE ratio of 21.81, a price-to-earnings-growth ratio of 0.38 and a beta of 0.62. The company's fifty day moving average is $70.74 and its 200-day moving average is $56.25. 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 issued its quarterly earnings results on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share for the quarter, beating the consensus estimate of $2.67 by $2.81. The business had revenue of $4.09 billion for the quarter, compared to the consensus estimate of $3.44 billion. Delek US had a net margin of 1.86% and a return on equity of 109.03%. 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 firm earned ($0.56) earnings per share. As a group, analysts predict that Delek US Holdings, Inc. will post 15.54 EPS for the current fiscal year.

Delek US Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Stockholders of record on Monday, August 3rd were paid a $0.2550 dividend. 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 1.3%. Delek US's dividend payout ratio is 28.65%.

Insider Activity

In related news, Director Vicky Sutil sold 6,397 shares of the company's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $71.50, for a total value of $457,385.50. Following the completion of the transaction, the director owned 26,407 shares of the company's stock, valued at approximately $1,888,100.50. This represents a 19.50% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William J. Finnerty sold 2,943 shares of the company's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $77.17, for a total transaction of $227,111.31. Following the completion of the transaction, the director directly owned 30,405 shares of the company's stock, valued at $2,346,353.85. This represents a 8.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 163,377 shares of company stock worth $11,082,485. 3.56% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Delek US

Institutional investors and hedge funds have recently bought and sold shares of the business. GK Wealth Management LLC purchased a new stake in Delek US in the 3rd quarter worth $100,000. GAMMA Investing LLC boosted its holdings in shares of Delek US by 61.6% during the 3rd quarter. GAMMA Investing LLC now owns 1,183 shares of the oil and gas company's stock valued at $84,000 after purchasing an additional 451 shares during the last quarter. Farther Finance Advisors LLC boosted its holdings in shares of Delek US by 11.2% during the 3rd quarter. Farther Finance Advisors LLC now owns 3,489 shares of the oil and gas company's stock valued at $249,000 after purchasing an additional 352 shares during the last quarter. Veracity Capital LLC purchased a new position in shares of Delek US during the third quarter valued at about $329,000. Finally, Tidal Investments LLC purchased a new position in shares of Delek US during the second quarter valued at about $334,000. 97.01% of the stock is owned by institutional investors.

About Delek US

Delek US Holdings, Inc is an independent downstream energy company headquartered in Brentwood, Tennessee. The company operates petroleum refineries and related logistics assets, producing transportation fuels and other refined petroleum products for commercial and wholesale customers.

Delek's refining operations have included facilities in the U.S. Gulf Coast and Mid-Continent regions, with assets in Texas, Arkansas and Louisiana. Its products may include gasoline, diesel, jet fuel, asphalt and other refined products.

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