Delek US (DK) Rating Increased to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Delek US (NYSE:DK) from a hold rating to a buy rating in a report published on Wednesday morning. Zacks Investment Research currently has $52.00 target price on the oil and gas company’s stock.
According to Zacks, “DELEK US HOLDINGS, INC. is a diversified energy business focused on petroleum refining, marketing and supply of refined products, and retail marketing of fuel and general merchandise. “
DK has been the subject of several other reports. Royal Bank of Canada reiterated a buy rating and issued a $49.00 price objective on shares of Delek US in a report on Friday, April 13th. Morgan Stanley upgraded Delek US from an equal weight rating to an overweight rating and set a $44.00 price objective for the company in a report on Thursday, January 11th. JPMorgan Chase lifted their price objective on Delek US from $43.00 to $44.00 and gave the stock a neutral rating in a report on Monday, April 9th. ValuEngine upgraded Delek US from a hold rating to a buy rating in a report on Friday, March 2nd. Finally, Howard Weil upgraded Delek US from a sector perform rating to a focus list rating and lifted their price objective for the stock from $26.00 to $41.00 in a report on Thursday, December 21st. One research analyst has rated the stock with a sell rating, five have given a hold rating, twelve have given a buy rating and two have issued a strong buy rating to the company’s stock. The company has a consensus rating of Buy and a consensus target price of $41.40.
Delek US (NYSE:DK) last issued its quarterly earnings results on Monday, February 26th. The oil and gas company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.10. Delek US had a return on equity of 5.99% and a net margin of 3.99%. The firm had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.10 billion. During the same period last year, the company earned ($0.44) earnings per share. The company’s revenue was up 129.0% on a year-over-year basis. sell-side analysts predict that Delek US will post 2.92 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Monday, March 26th. Shareholders of record on Monday, March 12th were paid a dividend of $0.20 per share. This is an increase from Delek US’s previous quarterly dividend of $0.15. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.71%. The ex-dividend date was Friday, March 9th. Delek US’s payout ratio is currently 63.49%.
Delek US announced that its board has initiated a share buyback plan on Monday, February 26th that permits the company to buyback $150.00 million in shares. This buyback authorization permits the oil and gas company to repurchase shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its stock is undervalued.
In other Delek US news, Director William J. Finnerty sold 6,000 shares of the business’s stock in a transaction dated Monday, April 16th. The stock was sold at an average price of $45.47, for a total transaction of $272,820.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Kevin L. Kremke sold 3,400 shares of the business’s stock in a transaction dated Tuesday, March 13th. The shares were sold at an average price of $37.01, for a total value of $125,834.00. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 216,109 shares of company stock valued at $8,105,076. Corporate insiders own 1.40% of the company’s stock.
Several hedge funds have recently bought and sold shares of DK. Meeder Asset Management Inc. lifted its position in shares of Delek US by 194.4% during the 4th quarter. Meeder Asset Management Inc. now owns 3,286 shares of the oil and gas company’s stock valued at $115,000 after buying an additional 2,170 shares in the last quarter. Great West Life Assurance Co. Can lifted its position in shares of Delek US by 51.3% during the 3rd quarter. Great West Life Assurance Co. Can now owns 7,112 shares of the oil and gas company’s stock valued at $188,000 after buying an additional 2,412 shares in the last quarter. Invictus RG purchased a new position in shares of Delek US during the 4th quarter valued at about $269,000. First Trust Advisors LP purchased a new position in shares of Delek US during the 4th quarter valued at about $330,000. Finally, ETRADE Capital Management LLC lifted its position in shares of Delek US by 21.6% during the 4th quarter. ETRADE Capital Management LLC now owns 9,759 shares of the oil and gas company’s stock valued at $341,000 after buying an additional 1,731 shares in the last quarter. 91.08% of the stock is currently owned by hedge funds and other institutional investors.
About Delek US
Delek US Holdings, Inc engages in the integrated downstream energy business in the United States. The company's Refining segment processes crude oil and other purchased feedstocks for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminals.
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