Delek US (NYSE:DK) Shares Down 7% – What’s Next?

Delek US Holdings, Inc. (NYSE:DK)’s stock price was down 7% during mid-day trading on Thursday. The company traded as low as $66.82 and last traded at $67.2330. 520,602 shares changed hands during trading, a decline of 66% from the average daily volume of 1,512,913 shares. The stock had previously closed at $72.26.

More Delek US News

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

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on DK. Wells Fargo & Company lifted their price objective on Delek US from $59.00 to $82.00 and gave the stock an “overweight” rating in a research report on Tuesday, September 1st. JPMorgan Chase & Co. upped their target price on Delek US from $57.00 to $62.00 and gave the company a “neutral” rating in a report on Tuesday, July 14th. Morgan Stanley raised their price target on Delek US from $45.00 to $81.00 and gave the stock an “equal weight” rating in a research note on Monday, September 14th. Raymond James Financial lifted their price target on shares of Delek US from $72.00 to $90.00 and gave the company an “outperform” rating in a report on Monday, September 14th. Finally, Mizuho boosted their price objective on shares of Delek US from $60.00 to $66.00 and gave the company an “outperform” rating in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, Delek US currently has a consensus rating of “Moderate Buy” and a consensus target price of $65.45.

Delek US Stock Up 1.4%

The company has a market capitalization of $4.15 billion, a P/E ratio of 19.06, a price-to-earnings-growth ratio of 0.35 and a beta of 0.59. The company has a 50-day moving average of $69.13 and a two-hundred day moving average of $53.98. 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) last posted its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to the consensus estimate of $3.44 billion. During the same quarter in the prior year, the company earned ($0.56) earnings per share. The firm’s quarterly revenue was up 47.9% compared to the same quarter last year. On average, research analysts predict that Delek US Holdings, Inc. will post 15.03 EPS for the current year.

Delek US Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Monday, August 3rd were given a dividend of $0.2550 per share. 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 28.65%.

Insider Buying and Selling at Delek US

In other Delek US news, Director Gary Sullivan, Jr. sold 27,688 shares of the company’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $69.01, for a total value of $1,910,748.88. Following the sale, the director owned 32,004 shares in the company, valued at approximately $2,208,596.04. This represents a 46.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director William Finnerty sold 2,943 shares of the firm’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 transaction of $227,111.31. Following the transaction, the director directly owned 30,405 shares of the company’s stock, valued at $2,346,353.85. This represents a 8.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 168,377 shares of company stock valued at $11,339,985 over the last three months. 3.56% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DK. EverSource Wealth Advisors LLC raised its stake in Delek US by 173.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 968 shares of the oil and gas company’s stock valued at $29,000 after buying an additional 614 shares during the last quarter. Allworth Financial LP bought a new position in shares of Delek US during the second quarter valued at $30,000. Rockefeller Capital Management L.P. increased its holdings in shares of Delek US by 1,327.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,955 shares of the oil and gas company’s stock valued at $58,000 after acquiring an additional 1,818 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its position in shares of Delek US by 350.7% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,037 shares of the oil and gas company’s stock worth $60,000 after purchasing an additional 1,585 shares during the last quarter. Finally, Integrated Wealth Concepts LLC bought a new position in Delek US in the 2nd quarter worth about $61,000. Institutional investors own 97.01% of the company’s stock.

About Delek US

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.