May 25, 2023 – Delek US (NYSE:DK), an oil and gas company, saw its shares open at $23.52 on Thursday. The stock has had a 1-year low of $19.39 and a high of $35.45. The business has recorded a 50-day moving average of $22.42 and a 200-day moving average of $25.69, indicating volatility but with stabilizing trends over the past few months.
The company has a market capitalization of $1.55 billion, which is comparatively low for the industry average; however, it boasts impressive figures such as a P/E ratio of only 5.38 and a price-to-earnings growth ratio of 1.26, suggesting that the company may be undervalued by investors.
Several research analysts recently issued reports on Delek US shares, giving mixed reviews ranging from “buy” to “sell.” Analysts at Goldman Sachs Group downgraded Delek US from “Buy” to “Neutral,” while simultaneously lowering their price target from $33 to $24 per share in their report on March 29th this year.
Other analysts have given differing opinions about the stock as well in recent studies and reports; for instance, Mizuho upped its price objective on Delek US from $25 to $26 in May this year.
Raymond James also released a report reducing its price target for Delek US from $35 to $32 — citing weak quarter results—despite giving an “outperform” rating to the stock in March.
It was reported that CEO Avigal Soreq purchased around 6,775 shares at an average price of approximately $22.63 per share on March 14th last year—amounting to over one hundred fifty thousand USD; furthermore, CFO Reuven Spiegel acquired about two thousand shares worth roughly forty-five thousand USD.
These insider purchases could indicate management confidence in the future of Delek US despite uncertainties relating to potential instability in oil prices.
In its most recent quarterly earnings report on May 8th, the company announced earnings per share (EPS) of $1.37—exceeding the analysts’ consensus estimate by 31 cents. This prompted a rise in share prices, suggesting that Delek US remains a strong contender in the industry.
Analysts note that while revenue for the quarter was down by 12%, indicating a slowdown compared to other players, their return on equity of almost 39% combined with P/E ratios and stock liquidity indicates strength — albeit shrouded with some uncertainty due to market-specific factors beyond its control.
Delek US Holdings Faces Lowered EPS Estimates for Q2 2023 Amidst Industry and Regulatory Changes
The recent announcement by Delek US Holdings, Inc. (NYSE:DK) regarding its Q2 2023 earnings per share (EPS) has caused a stir in the oil and gas sector. According to Zacks Research, they have lowered their Q2 2023 EPS estimates for Delek US from $1.37 to $1.05 per share.
N. Choudhury, an analyst at Zacks Research, revealed that the consensus estimate for Delek US’s full-year earnings is currently at $3.55 per share, which indicates a further decrease in EPS for Q3 and Q4 of 2023.
Despite these disappointing numbers, the company recently announced a quarterly dividend which saw its stockholders paid a dividend of $0.23 per share on May 22nd as long as they were shareholders of record on May 15th. This represents a dividend yield of 3.91%, an increase from their previous quarterly dividend of $0.22.
Furthermore, Delek US’s dividend payout ratio, which compares the dividends paid out to shareholders against its net income, stands at 21.05%. This percentage suggests that despite lower expected earnings for this quarter and beyond, the company still has sufficient funds to regularly payout dividends to its investors.
These fluctuating figures must be seen within the context of wider industry trends and regulatory changes affecting oil and gas companies globally.
Recent developments such as mounting environmental concerns and calls for more ethical business practices across all sectors have led many investors to scrutinize how these companies operate while also demanding greater transparency in disclosure requirements.
As we look towards future quarters with updated projections for Delek US’s earnings performance will remain under scrutiny by its stakeholders who expect significant progress by management towards addressing changing market demands amid volatile conditions both at home and abroad.
In conclusion, while reduced EPS predictions may not seem welcome news to some financial analysts given other factors like fluctuating fuel prices and concerns around reputation, Delek US’s increase in dividend yields provides a welcome silver lining for their shareholders. As with any investment decision, carefully parsing through all available information remains a critical task.