Delek US (NYSE:DK) Raised to Buy at Wall Street Zen

Delek US (NYSE:DK) was upgraded by stock analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued on Saturday.

A number of other analysts also recently commented on DK. Mizuho upped their price objective on Delek US from $45.00 to $51.00 and gave the stock an “outperform” rating in a report on Friday, December 12th. Citigroup reduced their target price on Delek US from $37.00 to $33.00 and set a “neutral” rating on the stock in a report on Monday, January 26th. Scotiabank set a $34.00 price target on Delek US in a research report on Friday, January 16th. Piper Sandler dropped their price target on Delek US from $47.00 to $40.00 and set a “neutral” rating for the company in a research note on Thursday, January 8th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Delek US in a report on Wednesday, January 21st. Four investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $39.46.

Delek US Stock Performance

NYSE DK opened at $42.35 on Friday. The business’s 50-day moving average price is $32.38 and its 200 day moving average price is $33.31. Delek US has a twelve month low of $11.02 and a twelve month high of $45.74. The company has a market capitalization of $2.54 billion, a PE ratio of -121.00 and a beta of 0.75. The company has a current ratio of 0.82, a quick ratio of 0.58 and a debt-to-equity ratio of 5.89.

Delek US (NYSE:DK) last posted its quarterly earnings data on Friday, February 27th. The oil and gas company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of ($0.19) by $0.63. Delek US had a negative net margin of 0.21% and a negative return on equity of 13.55%. The company had revenue of $2.43 billion during the quarter, compared to the consensus estimate of $2.55 billion. During the same quarter in the prior year, the company posted ($2.54) EPS. The company’s quarterly revenue was up 2.3% compared to the same quarter last year. On average, research analysts predict that Delek US will post -5.5 earnings per share for the current year.

Insider Activity at Delek US

In related news, EVP Reuven Spiegel sold 20,000 shares of the firm’s stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $42.84, for a total transaction of $856,800.00. Following the completion of the sale, the executive vice president directly owned 48,530 shares of the company’s stock, valued at approximately $2,079,025.20. This trade represents a 29.18% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Joseph Israel sold 38,000 shares of Delek US stock in a transaction on 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 trade represents a 40.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 142,764 shares of company stock valued at $5,989,317. 1.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Delek US

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allianz Asset Management GmbH grew its stake in Delek US by 40.2% during the 3rd quarter. Allianz Asset Management GmbH now owns 1,474,083 shares of the oil and gas company’s stock valued at $47,569,000 after purchasing an additional 423,017 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp acquired a new position in shares of Delek US in the 3rd quarter valued at approximately $1,338,000. Federated Hermes Inc. acquired a new position in shares of Delek US in the 3rd quarter valued at approximately $5,416,000. Quantbot Technologies LP purchased a new position in shares of Delek US during the 2nd quarter valued at approximately $1,089,000. Finally, Counterpoint Mutual Funds LLC purchased a new position in shares of Delek US during the 3rd quarter valued at approximately $2,834,000. 97.01% of the stock is owned by hedge funds and other institutional investors.

Delek US News Roundup

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

• Positive Sentiment: TD Cowen raised its price target from $28 to $44 (hold), narrowing upside uncertainty and signaling improving analyst visibility. Finviz
• Positive Sentiment: Quarterly results: Delek US reported a surprise EPS beat ($0.44 vs. est. -$0.19), which is supportive for the shares despite a slight revenue shortfall. (Source: company/market coverage)
• Positive Sentiment: Dividend declared: a $0.255 quarterly dividend (annualized $1.02, ~2.3% yield) payable March 9 — offers short-term income support for the stock.
• Neutral Sentiment: Institutional activity: several large funds have adjusted positions recently (mix of increases and new stakes); institutional ownership remains high (~97%), which can both stabilize and concentrate stock moves.
• Negative Sentiment: CEO sale: CEO Avigal Soreq sold 50,000 shares (~$2.05M at ~$41.08). Large insider sales from the CEO often trigger investor concern about timing and outlook. CEO Sale — SEC filing: Form 4
• Negative Sentiment: Additional insider selling: multiple executives and directors sold sizable stakes in early March (EVPs Reuven Spiegel — 20,000 sh; Joseph Israel — 38,000 sh; Directors Shlomo Zohar and William Finnerty also sold). The cluster of senior-level sales is adding downward pressure. Relevant SEC filings: Spiegel (Read More.), Israel (Read More.), Zohar (Read More.), Finnerty (Read More.).
• Negative Sentiment: Analyst moves mixed-to-negative: Citi and Piper Sandler trimmed price targets (to $33 and $40 respectively) and Weiss reiterated a sell — these downward revisions amplify selling pressure even as some shops (e.g., Mizuho) remain bullish.

Delek US Company Profile

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.