Delek US (NYSE:DK) Shares Gap Down – Should You Sell?

Delek US Holdings, Inc. (NYSE:DK)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $63.20, but opened at $60.43. Delek US shares last traded at $62.84, with a volume of 142,390 shares traded.

Wall Street Analysts Forecast Growth

DK has been the subject of a number of research analyst reports. Raymond James Financial raised their target price on Delek US from $60.00 to $70.00 and gave the company an “outperform” rating in a research note on Monday, July 13th. Zacks Research upgraded Delek US from a “hold” rating to a “strong-buy” rating in a report on Friday, June 26th. Morgan Stanley raised their price objective on Delek US from $41.00 to $45.00 and gave the company an “equal weight” rating in a research report on Friday, June 12th. Citigroup boosted their target price on shares of Delek US from $33.00 to $44.00 and gave the company a “neutral” rating in a report on Monday, April 13th. Finally, JPMorgan Chase & Co. upped their target price on shares of Delek US from $57.00 to $62.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have issued 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 a consensus target price of $51.92.

Delek US Stock Performance

The company has a debt-to-equity ratio of 10.51, a quick ratio of 0.49 and a current ratio of 0.76. The business has a 50-day moving average price of $50.31 and a 200 day moving average price of $42.45. The stock has a market capitalization of $3.87 billion, a P/E ratio of -69.22, a PEG ratio of 1.67 and a beta of 0.58.

Delek US (NYSE:DK) last posted its quarterly earnings results on Wednesday, April 29th. The oil and gas company reported $0.08 earnings per share for the quarter, topping the consensus estimate of ($1.42) by $1.50. Delek US had a positive return on equity of 22.90% and a negative net margin of 0.48%.The company had revenue of $2.65 billion for the quarter, compared to the consensus estimate of $2.33 billion. During the same quarter in the prior year, the business posted ($2.32) EPS. The firm’s quarterly revenue was up .4% compared to the same quarter last year. As a group, sell-side analysts forecast that Delek US Holdings, Inc. will post 8.3 EPS for the current fiscal year.

Delek US Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 10th. Stockholders of record on Monday, August 3rd will be paid a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, August 3rd. Delek US’s dividend payout ratio is currently -112.09%.

Insider Transactions at Delek US

In related news, Director William J. Finnerty sold 5,000 shares of the company’s stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $51.50, for a total value of $257,500.00. Following the transaction, the director owned 34,805 shares in the company, valued at $1,792,457.50. The trade was a 12.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Reuven Spiegel sold 10,000 shares of the company’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $44.36, for a total transaction of $443,600.00. Following the completion of the transaction, the executive vice president owned 48,372 shares in the company, valued at approximately $2,145,781.92. The trade was a 17.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 39,270 shares of company stock valued at $1,828,718. 3.56% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its stake in shares of Delek US by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 6,330,858 shares of the oil and gas company’s stock worth $187,773,000 after buying an additional 38,577 shares in the last quarter. Ion Asset Management Ltd. increased its position in shares of Delek US by 1.8% during the second quarter. Ion Asset Management Ltd. now owns 3,743,890 shares of the oil and gas company’s stock valued at $79,296,000 after acquiring an additional 67,490 shares in the last quarter. State Street Corp increased its position in shares of Delek US by 3.4% during the fourth quarter. State Street Corp now owns 2,639,447 shares of the oil and gas company’s stock valued at $78,286,000 after acquiring an additional 87,846 shares in the last quarter. Morgan Stanley raised its holdings in Delek US by 24.7% in the 4th quarter. Morgan Stanley now owns 2,033,037 shares of the oil and gas company’s stock worth $60,300,000 after acquiring an additional 403,059 shares during the last quarter. Finally, ION Fund Management Ltd purchased a new position in Delek US in the 4th quarter worth approximately $52,427,000. 97.01% of the stock is owned by hedge funds and other institutional investors.

About Delek US

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.