Delek US (NYSE:DK) Stock Jumps 6.3% - Here's Why

Key Points

• Delek US shares rose 6.3% to about $79 after several analysts raised their price targets, including Raymond James to $90 and Morgan Stanley to $81.
• The company’s latest quarterly results significantly exceeded expectations, with adjusted earnings of $5.48 per share versus the $2.67 consensus and revenue of $4.09 billion, up 47.9% year over year.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus rating, although the average price target of $70.83 is below the stock’s current price; insiders have also sold more than 163,000 shares over the past 90 days.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report) shares rose 6.3% on Monday. The company traded as high as $78.76 and last traded at $79.0680. 146,495 shares traded hands during trading, a decline of 91% from the average session volume of 1,571,829 shares. The stock had previously closed at $74.41.

Analyst Ratings Changes

A number of brokerages have recently issued reports on DK. Morgan Stanley increased their price objective on shares of Delek US from $45.00 to $81.00 and gave the company an "equal weight" rating in a research note on Monday, September 14th. Weiss Ratings upgraded shares of Delek US from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Raymond James Financial raised their price target on shares of Delek US from $72.00 to $90.00 and gave the stock an "outperform" rating in a research note on Monday, September 14th. Freedom Broker assumed coverage on Delek US in a report on Wednesday, October 7th. They set a "hold" rating and a $86.00 price objective on the stock. Finally, JPMorgan Chase & Co. upped 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. One 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's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $70.83.

Delek US Stock Performance

The company has a market capitalization of $4.84 billion, a P/E ratio of 22.25, a PEG ratio of 0.56 and a beta of 0.62. The stock has a fifty day simple moving average of $73.49 and a 200-day simple moving average of $58.48. 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 posted its earnings results on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share for the quarter, topping the consensus estimate of $2.67 by $2.81. The business had revenue of $4.09 billion for the quarter, compared to analyst estimates of $3.44 billion. Delek US had a net margin of 1.86% and a return on equity of 109.03%. The firm's quarterly revenue was up 47.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.56) EPS. Equities analysts forecast that Delek US Holdings, Inc. will post 18.04 EPS for the current year.

Insider Transactions at Delek US

In other Delek US news, EVP Reuven Spiegel sold 10,000 shares of the company's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $68.21, for a total transaction of $682,100.00. Following the sale, the executive vice president directly owned 36,435 shares of the company's stock, valued at approximately $2,485,231.35. This represents a 21.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Avigal Soreq sold 80,000 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $66.51, for a total transaction of $5,320,800.00. Following the sale, the chief executive officer directly owned 231,486 shares of the company's stock, valued at approximately $15,396,133.86. The trade was a 25.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 163,377 shares of company stock valued at $11,082,485. 3.56% of the stock is owned by company insiders.

Institutional Investors Weigh In On Delek US

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DK. Carolina Wealth Advisors LLC bought a new position in shares of Delek US in the third quarter worth about $38,000. Sterling Capital Management LLC lifted its position in shares of Delek US by 837.7% during the third quarter. Sterling Capital Management LLC now owns 2,016 shares of the oil and gas company's stock worth $144,000 after purchasing an additional 1,801 shares in the last quarter. Inspire Investing LLC bought a new stake in shares of Delek US during the third quarter valued at approximately $711,000. Yousif Capital Management LLC bought a new stake in shares of Delek US during the third quarter valued at approximately $1,119,000. Finally, Crossmark Global Holdings Inc. acquired a new stake in shares of Delek US in the third quarter valued at approximately $229,000. Institutional investors and hedge funds own 97.01% of the company's stock.

About Delek US

Delek US Holdings, Inc is a downstream energy company headquartered in Brentwood, Tennessee. The company operates petroleum refineries and related logistics assets, producing and transporting fuels and other refined petroleum products for markets primarily in the southern United States.

Through its refining operations, Delek processes crude oil into products such as gasoline, diesel, jet fuel and asphalt. Its logistics business, conducted in part through Delek Logistics Partners, owns and operates pipelines, crude oil gathering systems, storage terminals, transportation assets and other infrastructure that supports the movement of crude oil and refined products.

Delek has also operated convenience stores and fuel stations, particularly in Texas and neighboring states, under brands including DK and Alon.

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