Delek US Holdings Inc. (NYSE: DK) stock jumped 2.45% on Tuesday to $34.77 against a previous-day closing price of $33.94. With 1.0 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.36 million shares. During the session, the Oil & Gas Refining & Marketing company that operates in wider Energy sector, reached to the highest price of $35.45 whereas the lowest price it dropped to was $34.01. The 52-week range on DK shows that it touched its highest point at $35.12 and its lowest point at $13.95 during that stretch. It currently has a 1-year price target of $35.17. With its current market cap of 2.48 billion, DK has annualized dividend of $0.84 while the current yield stands at 2.42%. Beta for the stock currently stands at 1.43.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DK was up-trending over the past week, with a rise of 2.60%, but this was up by 19.48% over a month. Three-month performance surged to 17.86% while six-month performance rose 23.95%. The stock gained 124.63% in the past year, while it has gained 133.92% so far this year. A look at the trailing 12-month EPS for DK yields 4.68 with Next year EPS estimates of 4.25. For the next quarter, that number is 1.87. This implies an EPS growth rate of 67.60% for this year and -35.42% for next year. EPS is expected to grow by 0.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 6.60%.
Float and Shares Shorts:
At present, 70.47 million DK shares are outstanding with a float of 68.33 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.25 million, which was 10.21% higher than short shares on Sep 14, 2022. In addition to Mr. Ezra Uzi Yemin as the firm’s Exec. Chairman, Mr. Reuven Avraham Spiegel serves as its Exec. VP & CFO.
Through their ownership of 97.85% of DK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.42% of DK, in contrast to 46.43% held by mutual funds. Shares owned by individuals account for 21.70%. As the largest shareholder in DK with 10.96% of the stake, The Vanguard Group, Inc. holds 7,785,695 shares worth 7,785,695. A second-largest stockholder of DK, BlackRock Fund Advisors, holds 4,475,320 shares, controlling over 6.30% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in DK, holding 4,446,787 shares or 6.26% stake. With a 4.58% stake in DK, the SPDR S&P Oil & Gas Exploration & is the largest stakeholder. A total of 3,253,626 shares are owned by the mutual fund manager. The Victory Sycamore Small Company Op, which owns about 3.57% of DK stock, is the second-largest Mutual Fund holder. It holds 2,535,000 shares valued at 75.19 million. Vanguard Total Stock Market Index holds 3.00% of the stake in DK, owning 2,132,047 shares worth 63.24 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DK since 14 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DK analysts setting a high price target of $50.00 and a low target of $25.00, the average target price over the next 12 months is $35.23. Based on these targets, DK could surge 43.8% to reach the target high and fall by -28.1% to reach the target low. Reaching the average price target will result in a growth of 1.32% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DK will report FY 2022 earnings on 02/27/2023. Analysts have provided yearly estimates in a range of $8.61 being high and $4.99 being low. For DK, this leads to a yearly average estimate of $6.64. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Delek US Holdings Inc. surprised analysts by $0.17 when it reported $0.02 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was $1.13. Based on analyst estimates, the high estimate for the next quarter is $3.53 and the low estimate is $0.18. The average estimate for the next quarter is thus $1.88.
Summary of Insider Activity:
Insiders traded DK stock several times over the past three months with 0 Buys and 5 Sells. In these transactions, 0 shares were bought while 14,514 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 219,160 while 49,975 shares were sold.