Delek US (NYSE:DK) Trading 5.1% Higher - Here's Why

Key Points

• Delek US shares rose 5.1% to about $71.06 in Wednesday trading, despite volume running 68% below the daily average.
• The company reported strong quarterly results, with EPS of $5.48 versus the $2.67 consensus estimate and revenue of $4.09 billion, up 47.9% year over year.
• Analyst sentiment improved, including Goldman Sachs raising its price target to $83, though the overall MarketBeat consensus remains “Hold” with a $53.15 target. Delek also pays a quarterly dividend of $0.255, yielding about 1.4%.

Delek US Holdings, Inc. (NYSE:DK - Get Free Report)'s share price traded up 5.1% during trading on Wednesday . The stock traded as high as $70.17 and last traded at $71.0610. 449,321 shares were traded during mid-day trading, a decline of 68% from the average daily volume of 1,396,483 shares. The stock had previously closed at $67.59.

Wall Street Analysts Forecast Growth

DK has been the subject of a number of research reports. Wall Street Zen upgraded shares of Delek US from a "buy" rating to a "strong-buy" rating in a report on Sunday, August 9th. Mizuho raised their price objective on Delek US from $60.00 to $66.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 11th. JPMorgan Chase & Co. lifted their target price on Delek US from $57.00 to $62.00 and gave the stock a "neutral" rating in a report on Tuesday, July 14th. Weiss Ratings raised Delek US from a "sell (d+)" rating to a "hold (c+)" rating in a report on Thursday, August 6th. Finally, The Goldman Sachs Group boosted their price objective on Delek US from $73.00 to $83.00 and gave the stock a "buy" rating in a report on Tuesday, August 18th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Delek US currently has an average rating of "Hold" and an average target price of $53.15.

Delek US Price Performance

The company has a market capitalization of $4.38 billion, a P/E ratio of 20.15, a P/E/G ratio of 1.48 and a beta of 0.57. The company's 50-day simple moving average is $58.95 and its 200 day simple moving average is $48.05. 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 quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share for the quarter, beating analysts' consensus estimates of $2.67 by $2.81. Delek US had a return on equity of 109.03% and a net margin of 1.86%.The business had revenue of $4.09 billion for the quarter, compared to the consensus estimate of $3.44 billion. During the same period last year, the business earned ($0.56) EPS. The firm's revenue was up 47.9% compared to the same quarter last year. As a group, sell-side analysts expect that Delek US Holdings, Inc. will post 10.1 earnings per share for the current fiscal year.

Delek US Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, August 10th. Stockholders of record on Monday, August 3rd were paid a $0.255 dividend. This represents a $1.02 annualized dividend and a dividend yield of 1.4%. The ex-dividend date was Monday, August 3rd. Delek US's payout ratio is currently 28.65%.

Insiders Place Their Bets

In other Delek US news, Director Vicky Sutil sold 3,061 shares of the business's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $46.00, for a total transaction of $140,806.00. Following the completion of the sale, the director directly owned 31,239 shares of the company's stock, valued at approximately $1,436,994. The trade was a 8.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Reuven Spiegel sold 10,000 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $68.21, for a total value of $682,100.00. Following the completion of the transaction, the executive vice president directly owned 36,435 shares in the company, valued at $2,485,231.35. The trade was a 21.54% 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. Insiders sold a total of 127,086 shares of company stock valued at $8,183,753 over the last three months. Company insiders own 3.56% of the company's stock.

Hedge Funds Weigh In On Delek US

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in Delek US by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 6,330,858 shares of the oil and gas company's stock worth $187,773,000 after acquiring an additional 38,577 shares during the last quarter. Williamson Legacy Group LLC bought a new stake in shares of Delek US during the 4th quarter valued at about $1,095,000. Y Intercept Hong Kong Ltd boosted its position in shares of 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 acquiring an additional 33,553 shares during the last quarter. Highbridge Capital Management LLC purchased a new position in shares of Delek US during the fourth quarter worth about $1,093,000. Finally, Bank of America Corp DE grew its holdings in shares of Delek US by 118.0% during the first 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. 97.01% of the stock is owned by institutional investors.

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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