Delek US Holdings Inc. [NYSE: DK] closed the trading session at $12.38 on 09/16/20. The day’s price range saw the stock hit a low of $11.6702, while the highest price level was $12.77. The company report on August 13, 2020 that Delek US and Delek Logistics Announce Elimination of Incentive Distribution Rights.
Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) and Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”) today announced the execution and closing of a definitive agreement to eliminate all incentive distribution rights (IDRs) in Delek Logistics held by its general partner (GP) and convert its 2.0% economic general partner interest into a non-economic general partner interest in exchange for 14 million newly issued DKL common limited partner units and $45 million in cash. The newly issued DKL common limited partner units have a total equity value of approximately $484 million based on the DKL common limited partner unit closing price of $34.59 on August 12, 2020, or $442 million based on a 10-day volume weighted average price of $31.56.
This transaction is expected to be immediately accretive to distributable cash flow per DKL common unit. Following the close of the transaction, Delek US will hold a non-economic GP interest in DKL and own approximately 34.7 million DKL common limited partner units, representing approximately 80% of DKL’s outstanding common limited partner units.
The stocks have a year to date performance of -63.08 percent and weekly performance of -3.58 percent. The stock has been moved at 15.70 percent over the last six months. The stock has performed -25.38 percent around the most recent 30 days and changed -31.90 percent over the most recent 3-months.
If compared to the average trading volume of 1.38M shares, DK reached to a volume of 1495582 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Delek US Holdings Inc. [DK]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DK shares is $19.69 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DK stock is a recommendation set at 2.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Scotiabank have made an estimate for Delek US Holdings Inc. shares, keeping their opinion on the stock as Sector Underperform, with their previous recommendation back on August 06, 2020. The new note on the price target was released on July 09, 2020, representing the official price target for Delek US Holdings Inc. stock. Previously, the target price had yet another raise from $21 to $22, while Goldman kept a Neutral rating on DK stock.
The Average True Range (ATR) for Delek US Holdings Inc. is set at 0.87, with the Price to Sales ratio for DK stock in the period of the last 12 months amounting to 0.12. The Price to Book ratio for the last quarter was 0.65, with the Price to Cash per share for the same quarter was set at 11.44.
DK stock trade performance evaluation
Delek US Holdings Inc. [DK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.58. With this latest performance, DK shares dropped by -25.38% in over the last four-week period, additionally plugging by 15.70% over the last 6 months – not to mention a drop of -67.14% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DK stock in for the last two-week period is set at 33.34, with the RSI for the last a single of trading hit 31.20, and the three-weeks RSI is set at 36.40 for Delek US Holdings Inc. [DK]. The present Moving Average for the last 50 days of trading for this stock 16.08, while it was recorded at 12.12 for the last single week of trading, and 21.28 for the last 200 days.
Delek US Holdings Inc. [DK]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Delek US Holdings Inc. [DK] shares currently have an operating margin of +4.78 and a Gross Margin at +7.98. Delek US Holdings Inc.’s Net Margin is presently recorded at +3.28.
Return on Total Capital for DK is now 11.56, given the latest momentum, and Return on Invested Capital for the company is 8.45. Return on Equity for this stock inclined to 18.52, with Return on Assets sitting at 4.78. When it comes to the capital structure of this company, Delek US Holdings Inc. [DK] has a Total Debt to Total Equity ratio set at 135.14. Additionally, DK Total Debt to Total Capital is recorded at 57.47, with Total Debt to Total Assets ending up at 32.10. Long-Term Debt to Equity for the company is recorded at 130.53, with the Long-Term Debt to Total Capital now at 55.51.
Reflecting on the efficiency of the workforce at the company, Delek US Holdings Inc. [DK] managed to generate an average of $80,073 per employee. Receivables Turnover for the company is 13.29 with a Total Asset Turnover recorded at a value of 1.46.Delek US Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.50.
Earnings per share (EPS) analysis for Delek US Holdings Inc. [DK] stock
With the latest financial reports released by the company, Delek US Holdings Inc. posted 0.78/share EPS, while the average EPS was predicted by analysts to be reported at 0.68/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 14.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DK. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Delek US Holdings Inc. go to -9.20%.
Delek US Holdings Inc. [DK]: Insider Ownership positions
There are presently around $974 million, in the hands of institutional investors. The top three institutional holders of DK stocks are: ICAHN CARL C with ownership of 10,539,880, which is approximately 0% of the company’s market cap and around 1.30% of the total institutional ownership; VANGUARD GROUP INC, holding 8,255,438 shares of the stock with an approximate value of $102.2 million in DK stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $69.99 million in DK stock with ownership of nearly 1.957% of the company’s market capitalization.
Positions in Delek US Holdings Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 94 institutional holders increased their position in Delek US Holdings Inc. [NYSE:DK] by around 5,554,851 shares. Additionally, 133 investors decreased positions by around 11,383,102 shares, while 24 investors held positions by with 61,763,094 shares. The mentioned changes placed institutional holdings at 78,701,047 shares, according to the latest SEC report filing. DK stock had 42 new institutional investments in for a total of 1,703,400 shares, while 43 institutional investors sold positions of 2,531,376 shares during the same period.