Delek US Holdings Inc. (NYSE: DK) Seen Running Too Hot, Let’s Look At This More Closely


Icahn Associates Holding LLC recently announced the acquisition of new stake in Delek US Holdings Inc. (NYSE:DK). This fresh investment now brings its stake to 14.34% valued currently at $183.5 million. In addition, Wellington Management Co. LLP raised its holdings by 48465.0 to 5.55 million shares. And Dimensional Fund Advisors LP has lifted its position by 9.88% or 0.5 million shares – to 5.51 million shares.

With over 1.18 million Delek US Holdings Inc. (DK) shares trading Tuesday and a closing price of $18.41 on the day, the dollar volume was approximately $21.76 million. The shares have shown a positive weekly performance of 7.88% and its price on 07/21/20 lost nearly -1.07%. Currently, there are 73.44M common shares owned by the public and among those 71.65M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for DK have a consensus price objective of $21.29. The analysts have set the share’s price value over the next 12 months at a high of $30.00 and a low of $16.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Delek US Holdings Inc. stock is 2.80 for the next 12 months. The average price target is 16.32% above its last price level and an upside to the estimated low will see the stock lose -15.06% over that period. But an upside of 38.63% will see the stock hit the forecast high price target while mean target price for the stock is $20.00.

Insiders at the company have transacted a total of 52 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 22 of these insider trades were purchases, accounting for 1,667,344 shares. Insider sales of the common stock occurred on 30 occasions, with total insider shares sold totaling 151,590 shares.

The top 3 mutual fund holders in Delek US Holdings Inc. are Government Pension Fund – Global, Vanguard Total Stock Market Index, and SPDR S&P Oil & Gas Exploration &. Government Pension Fund – Global owns 2.39 million shares of the company’s stock, all valued at over $41.53 million. The company bought an additional 0.29 million shares recently to bring their total holdings to about 3.25% of the shares outstanding. Vanguard Total Stock Market Index sold 28977.0 shares to see its total holdings shrink to 2.12 million shares valued at over $36.87 million and representing 2.88% of the shares outstanding. SPDR S&P Oil & Gas Exploration & bought 5118.0 shares to bring its total holdings to over 2.08 million shares at a value of $36.17 million. SPDR S&P Oil & Gas Exploration & now owns shares totaling to 2.83% of the shares outstanding.

Shares of Delek US Holdings Inc. (NYSE: DK) opened at $17.74, down -$0.87 from a prior closing price of $18.61. However, the script later closed the day at $18.41, down -1.07%. The company’s stock has a 5-day price change of 7.88% and 10.12% over the past three months. DK shares are trading -44.50% year to date (YTD), with the 12-month market performance down to -52.39% lower. It has a 12-month low price of $7.79 and touched a high of $44.08 over the same period. Currently, 1.18 million shares have been traded, compared to an average intraday trading volume of 1.45 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.61%, -3.00%, and -28.00% respectively.

Institutional ownership of Delek US Holdings Inc. (NYSE: DK) 73.44M shares outstanding. Mutual fund holders own 54.42%, while other institutional holders and individual stakeholders account for 62.25% and 10.39% respectively.

It has a market capitalization of $1.39B and a beta (3y monthly) value of 2.02. The earnings-per-share (ttm) stands at -$2.23. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.06% over the week and 6.19% over the month.

Analysts forecast that Delek US Holdings Inc. (DK) will achieve an EPS of -$0.5 for the current quarter, -$0.36 for the next quarter and $0.41 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.74 while analysts give the company a high EPS estimate of -$0.27. Comparatively, EPS for the current quarter was $1.17 a year ago. Earnings per share for the fiscal year are expected to decrease by -0.60%, and 127.70% over the next financial year. EPS should shrink at an annualized rate of -9.20% over the next five years, compared to 3.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Delek US Holdings Inc. (DK) as a “Moderate Buy” at a consensus score of 2.80. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 11 of the 17 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the DK, a number of firms have released research notes about the stock. Tudor Pickering stated their Hold rating for the stock in a research note on July 09, 2020, with the firm’s price target at $17. Goldman coverage for the Delek US Holdings Inc. (DK) stock in a research note released on May 20, 2020 offered a Neutral rating with a price target of $22. Tudor Pickering was of a view on May 13, 2020 that the stock is Sell, while Cowen gave the stock Market Perform rating on April 14, 2020, issuing a price target of $28- $20. Raymond James on their part issued Outperform rating on March 24, 2020.


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