Delek US (NYSE:DK) Shares Up 6.5% - Still a Buy?

Key Points

• Delek US shares rose 6.5% to about $73.17, while trading volume fell 39% below the average. The stock is above its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $65.45 average price target, although recent targets range as high as $90.
• Delek reported strong quarterly results, earning $5.48 per share versus the $2.67 consensus estimate and generating $4.09 billion in revenue. The company also pays a $0.255 quarterly dividend, but insiders have sold more than 163,000 shares over the past 90 days.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report)'s share price traded up 6.5% on Wednesday. The company traded as high as $73.01 and last traded at $73.1660. 950,875 shares traded hands during trading, a decline of 39% from the average daily volume of 1,566,334 shares. The stock had previously closed at $68.73.

Analysts Set New Price Targets

DK has been the subject of a number of research analyst reports. Wells Fargo & Company lifted their target price on shares of Delek US from $59.00 to $82.00 and gave the stock an "overweight" rating in a research report on Tuesday, September 1st. Weiss Ratings raised Delek US from a "sell (d+)" rating to a "hold (c+)" rating in a report on Thursday, August 6th. Wall Street Zen upgraded Delek US from a "buy" rating to a "strong-buy" rating in a research note on Sunday, August 9th. Citigroup reaffirmed a "neutral" rating on shares of Delek US in a report on Thursday, August 6th. Finally, Raymond James Financial upped their price objective on Delek US from $72.00 to $90.00 and gave the company an "outperform" rating in a research report on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, Delek US presently has a consensus rating of "Moderate Buy" and a consensus target price of $65.45.

Delek US Stock Up 6.5%

The company has a debt-to-equity ratio of 7.53, a current ratio of 0.76 and a quick ratio of 0.47. The firm has a market capitalization of $4.48 billion, a P/E ratio of 20.59, a P/E/G ratio of 0.33 and a beta of 0.59. The company's 50-day simple moving average is $69.22 and its two-hundred day simple moving average is $54.46.

Delek US (NYSE:DK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.67 by $2.81. The firm had revenue of $4.09 billion during 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% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.56) EPS. As a group, research 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 declared a quarterly dividend, which was paid on Monday, August 10th. Shareholders of record on Monday, August 3rd were issued a dividend of $0.2550 per share. This represents a $1.02 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Monday, August 3rd. Delek US's payout ratio is currently 28.65%.

Insiders Place Their Bets

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 transaction, the executive vice president owned 35,670 shares of the company's stock, valued at $2,693,085. This trade represents a 13.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Vicky Sutil sold 6,397 shares of Delek US stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $71.50, for a total value of $457,385.50. Following the transaction, the director directly owned 26,407 shares in the company, valued at approximately $1,888,100.50. The trade was 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. Over the last 90 days, insiders have sold 163,377 shares of company stock valued at $11,082,485. 3.56% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Delek US

Hedge funds have recently modified their holdings of the company. WINTON GROUP Ltd raised its stake 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 valued at $2,937,000 after purchasing an additional 47,200 shares during the period. Bank of America Corp DE lifted its holdings in Delek US by 118.0% in the 1st quarter. Bank of America Corp DE now owns 846,204 shares of the oil and gas company's stock worth $38,138,000 after purchasing an additional 458,004 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund boosted its stake 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 worth $28,322,000 after purchasing an additional 879,900 shares during the period. Highbridge Capital Management LLC bought a new position in Delek US in the 4th quarter worth approximately $1,093,000. Finally, Y Intercept Hong Kong Ltd grew its holdings in Delek US by 281.5% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 45,471 shares of the oil and gas company's stock valued at $2,049,000 after buying an additional 33,553 shares in the last quarter. 97.01% of the stock is currently owned by institutional investors.

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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