Delek US (NYSE:DK) Shares Gap Up - Should You Buy?

Key Points

• Delek US shares gapped higher, opening at $76.98 versus a prior close of $74.34, but later traded at approximately $72.58.
• Analyst sentiment remains mixed: the stock has a consensus rating of “Hold” and an average price target of $54.92, despite TD Cowen raising its target to $76 with a Buy rating.
• Delek US reported strong quarterly results, with EPS of $5.48 versus the $2.67 consensus and revenue up 47.9% year over year. The company also pays a $0.255 quarterly dividend, while insiders sold about $9.8 million of stock over the past 90 days.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $74.34, but opened at $76.98. Delek US shares last traded at $72.5760, with a volume of 247,646 shares traded.

Analysts Set New Price Targets

DK has been the subject of several recent analyst reports. Weiss Ratings upgraded Delek US from a "sell (d+)" rating to a "hold (c+)" rating in a research note on Thursday, August 6th. Wall Street Zen raised Delek US from a "buy" rating to a "strong-buy" rating in a research note on Sunday, August 9th. Morgan Stanley lifted their target price on Delek US from $41.00 to $45.00 and gave the company an "equal weight" rating in a research report on Friday, June 12th. JPMorgan Chase & Co. increased their target price on shares of Delek US from $57.00 to $62.00 and gave the stock a "neutral" rating in a report on Tuesday, July 14th. Finally, TD Cowen raised their price target on shares of Delek US from $58.00 to $76.00 and gave the company a "buy" rating in a research note on Tuesday, July 21st. One equities research 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 issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $54.92.

Delek US Price Performance

The business has a 50-day moving average of $61.34 and a two-hundred day moving average of $49.10. 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 firm has a market cap of $4.38 billion, a P/E ratio of 20.08, a price-to-earnings-growth ratio of 1.43 and a beta of 0.57.

Delek US (NYSE:DK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The oil and gas company reported $5.48 EPS for the quarter, beating analysts' consensus estimates 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 business's revenue for the quarter was up 47.9% on a year-over-year basis. During the same period last year, the firm posted ($0.56) earnings per share. On average, sell-side analysts anticipate that Delek US Holdings, Inc. will post 11.05 earnings per share for the current fiscal year.

Delek US Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, August 10th. Shareholders of record on Monday, August 3rd were issued 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 of this dividend was Monday, August 3rd. Delek US's payout ratio is presently 28.65%.

Insider Transactions at Delek US

In related news, CEO Avigal Soreq sold 80,000 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $66.51, for a total value of $5,320,800.00. Following the completion of the sale, the chief executive officer directly owned 231,486 shares in the company, valued at $15,396,133.86. This represents a 25.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary M. Jr. Sullivan sold 27,688 shares of the firm's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $69.01, for a total value of $1,910,748.88. Following the transaction, the director directly owned 32,004 shares of the company's stock, valued at approximately $2,208,596.04. This represents a 46.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 148,016 shares of company stock worth $9,789,125. 3.56% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Delek US

A number of institutional investors have recently made changes to their positions in the stock. Amundi acquired a new stake in shares of Delek US in the second quarter valued at about $228,000. California State Teachers Retirement System lifted its stake in shares of Delek US by 4,681.3% in the second quarter. California State Teachers Retirement System now owns 3,411,231 shares of the oil and gas company's stock worth $173,325,000 after acquiring an additional 3,339,885 shares during the period. Nykredit A S bought a new stake in Delek US in the second quarter valued at approximately $191,000. Lone Peak Global Investors LLC boosted its holdings in Delek US by 6.0% in the second quarter. Lone Peak Global Investors LLC now owns 246,497 shares of the oil and gas company's stock valued at $12,525,000 after acquiring an additional 13,861 shares during the last quarter. Finally, Hennessy Advisors Inc. acquired a new stake in Delek US during the 2nd quarter valued at approximately $10,208,000. Institutional investors own 97.01% of the company's stock.

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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