Delek US Holdings, Inc. (NYSE:DK) Stock Has Consensus Price Target of $65.45

by · The Markets Daily

Delek US Holdings, Inc. (NYSE:DK – Get Free Report) has been given an average recommendation of “Moderate Buy” by the thirteen analysts that are covering the stock, Marketbeat Ratings reports. Seven analysts have rated the stock with a hold recommendation, five have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $65.45.

A number of equities research analysts recently issued reports on DK shares. Mizuho increased their price objective on Delek US from $60.00 to $66.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 11th. The Goldman Sachs Group boosted their target price on Delek US from $73.00 to $83.00 and gave the stock a “buy” rating in a research report on Tuesday, August 18th. Zacks Research upgraded Delek US from a “hold” rating to a “strong-buy” rating in a research note on Friday, June 26th. Raymond James Financial raised their price target on Delek US from $72.00 to $90.00 and gave the company an “outperform” rating in a report on Monday, September 14th. Finally, TD Cowen lifted their price target on Delek US from $76.00 to $90.00 and gave the company a “buy” rating in a research report on Monday, September 14th.

Get Our Latest Stock Report on DK

Delek US Price Performance

Shares of NYSE:DK opened at $67.84 on Wednesday. The company has a 50 day moving average of $69.13 and a 200 day moving average of $53.98. 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 stock has a market cap of $4.15 billion, a P/E ratio of 19.06, a P/E/G ratio of 0.35 and a beta of 0.59. Delek US has a 12 month low of $25.85 and a 12 month high of $82.27.

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 (EPS) 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 analysts’ expectations of $3.44 billion. Delek US had a net margin of 1.86% and a return on equity of 109.03%. The business’s revenue for the quarter was up 47.9% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.56) EPS. As a group, sell-side analysts forecast that Delek US will post 15.03 EPS for the current fiscal year.

Delek US Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Monday, August 3rd were paid a $0.2550 dividend. This represents a $1.02 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Monday, August 3rd. Delek US’s dividend payout ratio (DPR) is currently 28.65%.

Insider Buying and Selling at Delek US

In other Delek US news, Director William Finnerty sold 2,943 shares of the business’s stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $77.17, for a total value of $227,111.31. Following the completion of the transaction, the director owned 30,405 shares of the company’s stock, valued at $2,346,353.85. The trade was a 8.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Reuven Spiegel sold 7,500 shares of the stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $73.21, for a total transaction of $549,075.00. Following the completion of the transaction, the executive vice president directly owned 28,935 shares in the company, valued at $2,118,331.35. The trade was a 20.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 168,377 shares of company stock valued at $11,339,985 over the last quarter. Company insiders own 3.56% of the company’s stock.

Institutional Investors Weigh In On Delek US

A number of large investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Delek US in the 2nd quarter worth about $275,233,000. Norges Bank purchased a new position in shares of Delek US during the 4th quarter valued at about $48,374,000. Arrowstreet Capital Limited Partnership lifted its position in Delek US by 26.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,596,093 shares of the oil and gas company’s stock worth $71,936,000 after buying an additional 335,892 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund boosted its stake in Delek US by 19.0% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,136,720 shares of the oil and gas company’s stock worth $51,232,000 after buying an additional 181,820 shares in the last quarter. Finally, Bank of America Corp DE boosted its stake in Delek US by 118.0% in 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 buying an additional 458,004 shares in the last quarter. Hedge funds and other institutional investors own 97.01% of the company’s stock.

Delek US News Roundup

Here are the key news stories impacting Delek US this week:

  • Positive Sentiment: Higher earnings estimates support sentiment. Zacks Research raised its earnings estimates for Delek US, reinforcing the outlook following the company’s strong recent quarterly results, which included earnings and revenue well above consensus expectations. Delek US Stock Earnings Estimates Boosted by Zacks Research
  • Positive Sentiment: Delek completed pricing of $400 million of convertible senior notes. The 0.00% notes mature in 2031, meaning the company receives capital without a stated cash-interest expense. The notes are fully and unconditionally guaranteed by qualifying subsidiaries, which may improve investor confidence in the financing. Delek US Announces Pricing of $400 Million of Convertible Senior Notes
  • Neutral Sentiment: The financing provides additional liquidity but changes Delek’s capital structure. Proceeds from the offering give DK financial flexibility, while the notes’ senior unsecured status and 2031 maturity add a future repayment obligation. The company’s substantial existing leverage makes the impact of the financing an important consideration for investors. Delek US Prices $400 Million Convertible Senior Notes
  • Negative Sentiment: The proposed notes offering initially pressured DK shares. Investors reacted negatively to the possibility of future equity dilution if the convertible notes are converted into Delek shares. The offering also raised concerns about additional leverage, despite the notes carrying a zero-percent coupon. Delek US Shares Drop After Proposed $400 Million Offering

About Delek US

(Get Free Report)

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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