Delek US (NYSE:DK) Shares Gap Up After Better-Than-Expected Earnings

Delek US Holdings, Inc. (NYSE:DK) shares gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $41.04, but opened at $43.53. Delek US shares last traded at $46.2230, with a volume of 159,440 shares traded.

The oil and gas company reported $0.08 EPS for the quarter, beating the consensus estimate of ($0.60) by $0.68. The business had revenue of $2.65 billion during the quarter, compared to the consensus estimate of $2.36 billion. Delek US had a negative net margin of 0.21% and a negative return on equity of 13.55%. The firm’s quarterly revenue was up .4% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($2.32) EPS.

Delek US Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 8th. Investors of record on Friday, May 1st will be given a $0.255 dividend. This represents a $1.02 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Friday, May 1st. Delek US’s dividend payout ratio is -291.43%.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on DK. Wells Fargo & Company increased their price target on shares of Delek US from $54.00 to $59.00 and gave the stock an “overweight” rating in a research report on Tuesday, March 31st. Weiss Ratings upgraded Delek US from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday. JPMorgan Chase & Co. dropped their target price on shares of Delek US from $42.00 to $38.00 and set a “neutral” rating on the stock in a report on Thursday, January 15th. Morgan Stanley boosted their target price on shares of Delek US from $38.00 to $40.00 and gave the stock an “equal weight” rating in a research report on Friday, April 24th. Finally, Raymond James Financial boosted their target price on shares of Delek US from $47.00 to $54.00 and gave the stock an “outperform” rating in a research report on Wednesday, March 25th. Five equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $44.15.

Insider Activity

In other Delek US news, Director William J. Finnerty sold 5,000 shares of the company’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $45.50, for a total transaction of $227,500.00. Following the sale, the director directly owned 41,369 shares of the company’s stock, valued at approximately $1,882,289.50. This represents a 10.78% 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. Also, EVP Joseph Israel sold 38,000 shares of the company’s stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $40.65, for a total transaction of $1,544,700.00. Following the sale, the executive vice president directly owned 55,623 shares in the company, valued at $2,261,074.95. This represents a 40.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 172,095 shares of company stock valued at $7,257,409. Corporate insiders own 3.56% of the company’s stock.

Hedge Funds Weigh In On Delek US

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. ION Fund Management Ltd acquired a new position in Delek US in the fourth quarter valued at about $52,427,000. Norges Bank acquired a new position in Delek US in the fourth quarter valued at about $48,374,000. Arrowstreet Capital Limited Partnership grew its stake in Delek US by 6,300.8% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,306,269 shares of the oil and gas company’s stock valued at $42,153,000 after acquiring an additional 1,285,861 shares during the period. Price T Rowe Associates Inc. MD grew its stake in Delek US by 1,516.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 996,059 shares of the oil and gas company’s stock valued at $29,544,000 after acquiring an additional 934,448 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund grew its stake in Delek US by 1,173.2% in the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 954,900 shares of the oil and gas company’s stock valued at $28,322,000 after acquiring an additional 879,900 shares during the period. Institutional investors own 97.01% of the company’s stock.

Delek US Trading Up 12.1%

The business has a 50 day simple moving average of $41.21 and a 200-day simple moving average of $36.55. The company has a debt-to-equity ratio of 5.89, a current ratio of 0.82 and a quick ratio of 0.53. The stock has a market capitalization of $2.75 billion, a price-to-earnings ratio of -132.09, a PEG ratio of 0.57 and a beta of 0.68.

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.