The Goldman Sachs Group Forecasts Strong Price Appreciation for Delek US (NYSE:DK) Stock

Key Points

• The Goldman Sachs Group has raised its price target for Delek US (NYSE:DK) from $28.00 to $39.00, indicating a potential upside of 15.57% based on the stock's recent closing price.
• Other analysts have also provided positive outlooks, with Wolfe Research upgrading the stock to "outperform" and setting a target price of $40.00, while Wells Fargo has initiated coverage with a target of $43.00.
• Delek US reported a negative net margin of 7.11% and a negative return on equity of 79.27% in its latest earnings report, raising concerns despite the optimistic stock predictions.

Delek US (NYSE:DK - Get Free Report) had its price target raised by investment analysts at The Goldman Sachs Group from $28.00 to $39.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has a "neutral" rating on the oil and gas company's stock. The Goldman Sachs Group's target price would suggest a potential upside of 15.57% from the company's previous close.

DK has been the topic of a number of other research reports. Wolfe Research upgraded shares of Delek US from a "peer perform" rating to an "outperform" rating and set a $40.00 target price on the stock in a research report on Wednesday, September 3rd. Piper Sandler raised their target price on shares of Delek US from $29.00 to $34.00 and gave the company a "neutral" rating in a research report on Thursday, September 11th. Wells Fargo & Company started coverage on shares of Delek US in a research report on Friday, October 17th. They issued an "overweight" rating and a $43.00 target price on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Delek US in a research report on Wednesday, October 8th. Finally, Morgan Stanley set a $34.00 target price on shares of Delek US and gave the company an "equal weight" rating in a research report on Friday, October 3rd. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $33.00.

Delek US Stock Performance

NYSE DK opened at $33.75 on Wednesday. The company has a current ratio of 0.80, a quick ratio of 0.50 and a debt-to-equity ratio of 10.48. The firm has a market capitalization of $2.03 billion, a price-to-earnings ratio of -2.75 and a beta of 1.01. The firm's 50 day simple moving average is $30.01 and its 200 day simple moving average is $22.82. Delek US has a 1 year low of $11.02 and a 1 year high of $35.96.

Delek US (NYSE:DK - Get Free Report) last issued its earnings results on Tuesday, December 6th. The oil and gas company reported $0.05 earnings per share for the quarter. Delek US had a negative net margin of 7.11% and a negative return on equity of 79.27%. The firm had revenue of $2.96 billion for the quarter. As a group, research analysts expect that Delek US will post -5.5 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Robert G. Wright sold 7,135 shares of Delek US stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $29.24, for a total transaction of $208,627.40. Following the completion of the transaction, the chief financial officer owned 48,294 shares of the company's stock, valued at $1,412,116.56. This trade represents a 12.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 1.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Delek US

A number of hedge funds have recently bought and sold shares of the company. T. Rowe Price Investment Management Inc. bought a new stake in Delek US in the first quarter valued at $13,728,000. Nuveen LLC bought a new stake in Delek US in the first quarter valued at $13,629,000. Harel Insurance Investments & Financial Services Ltd. increased its stake in Delek US by 113.5% in the second quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,601,777 shares of the oil and gas company's stock valued at $33,926,000 after purchasing an additional 851,458 shares in the last quarter. Callodine Capital Management LP increased its stake in Delek US by 1,827.6% in the first quarter. Callodine Capital Management LP now owns 674,661 shares of the oil and gas company's stock valued at $10,167,000 after purchasing an additional 639,661 shares in the last quarter. Finally, Bank of America Corp DE increased its stake in Delek US by 144.3% in the second quarter. Bank of America Corp DE now owns 632,695 shares of the oil and gas company's stock valued at $13,400,000 after purchasing an additional 373,678 shares in the last quarter. Institutional investors own 97.01% of the company's stock.

Delek US Company Profile

Delek US Holdings, Inc engages in the integrated downstream energy business in the United States. The company operates through Refining, Logistics, and Retail segments. The Refining segment processes crude oil and other feedstock for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminal.

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