Delek US (NYSE:DK) Shares Gap Down - Here's Why

Key Points

• Delek US shares gapped down from a prior close of $74.37 to open at $71.96, later trading near $73.49.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and recent price targets ranging as high as $90, although the average target is $65.45.
• The company 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; Delek also maintains a $0.255 quarterly dividend.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $74.37, but opened at $71.96. Delek US shares last traded at $73.4920, with a volume of 205,822 shares traded.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. The Goldman Sachs Group raised their price objective on Delek US from $73.00 to $83.00 and gave the company a "buy" rating in a report on Tuesday, August 18th. Morgan Stanley increased their target price on shares of Delek US from $45.00 to $81.00 and gave the company an "equal weight" 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 note on Sunday, August 9th. TD Cowen boosted 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. Finally, Citigroup reaffirmed a "neutral" rating on shares of Delek US in a research note on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, Delek US currently has a consensus rating of "Moderate Buy" and an average target price of $65.45.

Delek US Stock Performance

The stock has a 50-day moving average of $68.43 and a 200 day moving average of $53.31. The stock has a market cap of $4.61 billion, a PE ratio of 20.96, a P/E/G ratio of 0.39 and a beta of 0.59. The company has a quick ratio of 0.47, a current ratio of 0.76 and a debt-to-equity ratio of 7.53.

Delek US (NYSE:DK - Get Free Report) last issued its earnings results on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.67 by $2.81. Delek US had a return on equity of 109.03% and a net margin of 1.86%.The company had revenue of $4.09 billion during the quarter, compared to analysts' expectations of $3.44 billion. During the same period in the prior year, the business earned ($0.56) EPS. The firm's quarterly revenue was up 47.9% on a year-over-year basis. Equities analysts predict that Delek US Holdings, Inc. will post 15.83 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. Investors of record on Monday, August 3rd were issued a $0.255 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 1.4%. Delek US's dividend payout ratio is currently 28.65%.

Insider Activity

In other news, Director Vicky Sutil sold 6,397 shares of the firm's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $71.50, for a total transaction of $457,385.50. Following the completion of the sale, the director owned 26,407 shares in the company, valued at $1,888,100.50. This trade represents a 19.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William J. Finnerty sold 2,943 shares of Delek US stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $77.17, for a total transaction of $227,111.31. Following the sale, the director directly owned 30,405 shares in the company, valued at approximately $2,346,353.85. The trade was a 8.83% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 168,377 shares of company stock valued at $11,339,985 in the last quarter. Insiders own 3.56% of the company's stock.

Institutional Investors Weigh In On Delek US

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DK. BlackRock Inc. purchased a new stake in shares of Delek US in the 2nd quarter valued at $275,233,000. Norges Bank purchased a new position in Delek US during the 4th quarter valued at about $48,374,000. Healthcare of Ontario Pension Plan Trust Fund grew its position in Delek US by 1,173.2% in the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 954,900 shares of the oil and gas company's stock valued at $28,322,000 after acquiring an additional 879,900 shares in the last quarter. Bank of America Corp DE acquired a new position in Delek US in the 2nd quarter valued at about $37,664,000. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new stake in Delek US during the second quarter worth about $22,987,000. Institutional investors and hedge funds own 97.01% of the company's stock.

Delek US Company Profile

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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