Traders Purchase Large Volume of Call Options on Delek US (DK)

Delek US Holdings, Inc. (NYSE:DK) was the target of some unusual options trading activity on Tuesday. Investors bought 5,083 call options on the company. This is an increase of approximately 6,501% compared to the typical volume of 77 call options.

DK traded down $1.90 during trading on Thursday, hitting $42.64. 2,822,526 shares of the company’s stock were exchanged, compared to its average volume of 1,426,899. The company has a market cap of $3,701.67, a price-to-earnings ratio of 33.84, a PEG ratio of 1.98 and a beta of 1.44. The company has a current ratio of 0.98, a quick ratio of 0.68 and a debt-to-equity ratio of 0.45. Delek US has a fifty-two week low of $20.65 and a fifty-two week high of $44.95.

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Delek US (NYSE:DK) last posted its quarterly earnings data on Monday, February 26th. The oil and gas company reported $0.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.10. Delek US had a net margin of 3.99% and a return on equity of 5.99%. The business had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.10 billion. During the same quarter last year, the company posted ($0.44) earnings per share. The firm’s quarterly revenue was up 129.0% compared to the same quarter last year. equities analysts forecast that Delek US will post 2.23 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Monday, March 26th. Shareholders of record on Monday, March 12th were given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 1.88%. The ex-dividend date of this dividend was Friday, March 9th. This is a positive change from Delek US’s previous quarterly dividend of $0.15. Delek US’s dividend payout ratio (DPR) is currently 63.49%.

Delek US declared that its Board of Directors has authorized a share repurchase program on Monday, February 26th that allows the company to buyback $150.00 million in shares. This buyback authorization allows the oil and gas company to buy shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Several equities research analysts have issued reports on the stock. Zacks Investment Research upgraded shares of Delek US from a “hold” rating to a “buy” rating and set a $43.00 price target on the stock in a research note on Wednesday, January 17th. Royal Bank of Canada reaffirmed a “buy” rating and set a $42.00 target price on shares of Delek US in a report on Thursday, March 1st. Citigroup raised shares of Delek US from a “neutral” rating to a “buy” rating and set a $43.00 target price for the company in a report on Wednesday, February 14th. TheStreet raised shares of Delek US from a “c+” rating to a “b-” rating in a report on Monday, December 18th. Finally, Morgan Stanley raised shares of 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. One analyst has rated the stock with a sell rating, five have issued a hold rating, twelve have given a buy rating and two have assigned a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $39.47.

In other Delek US news, insider Anthony L. Miller sold 1,118 shares of the firm’s stock in a transaction that occurred on Wednesday, March 14th. The shares were sold at an average price of $36.87, for a total value of $41,220.66. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Kevin L. Kremke sold 3,400 shares of the firm’s stock in a transaction that occurred on Tuesday, March 13th. The shares were sold at an average price of $37.01, for a total transaction of $125,834.00. The disclosure for this sale can be found here. Insiders have sold 235,109 shares of company stock valued at $8,782,256 in the last ninety days. 1.40% of the stock is owned by company insiders.

A number of large investors have recently modified their holdings of the business. Nationwide Fund Advisors boosted its position in shares of Delek US by 6.8% in the third quarter. Nationwide Fund Advisors now owns 195,162 shares of the oil and gas company’s stock valued at $5,217,000 after acquiring an additional 12,433 shares during the period. Aperio Group LLC bought a new position in shares of Delek US in the third quarter valued at approximately $236,000. Prudential Financial Inc. boosted its position in shares of Delek US by 123.9% in the third quarter. Prudential Financial Inc. now owns 57,601 shares of the oil and gas company’s stock valued at $1,540,000 after acquiring an additional 31,877 shares during the period. Principal Financial Group Inc. boosted its position in shares of Delek US by 71.6% in the third quarter. Principal Financial Group Inc. now owns 466,967 shares of the oil and gas company’s stock valued at $12,482,000 after acquiring an additional 194,856 shares during the period. Finally, Swiss National Bank bought a new position in shares of Delek US in the third quarter valued at approximately $3,221,000. Hedge funds and other institutional investors own 91.07% of the company’s stock.

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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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