Trade-Ideas LLC identified

Delek US Holdings

(

DK

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Delek US Holdings as such a stock due to the following factors:

  • DK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.8 million.
  • DK has traded 77,044 shares today.
  • DK is trading at 2.37 times the normal volume for the stock at this time of day.
  • DK is trading at a new low 3.04% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on DK:

Delek US Holdings, Inc. operates as an integrated energy company that operates in petroleum refining, wholesale distribution, and convenience store retailing businesses. The company operates in three segments: Refining, Logistics, and Retail. The stock currently has a dividend yield of 4.7%. DK has a PE ratio of 97. Currently there are 7 analysts that rate Delek US Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Delek US Holdings has been 1.3 million shares per day over the past 30 days. Delek US has a market cap of $781.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.73 and a short float of 7% with 3.28 days to cover. Shares are down 46.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Delek US Holdings as a

hold

. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and poor profit margins.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 283.41% to $71.90 million when compared to the same quarter last year. In addition, DELEK US HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -49.84%.
  • Despite the weak revenue results, DK has outperformed against the industry average of 24.6%. Since the same quarter one year prior, revenues slightly dropped by 3.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • DK's debt-to-equity ratio of 0.90 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that DK's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.68 is low and demonstrates weak liquidity.
  • DELEK US HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, DELEK US HOLDINGS INC reported lower earnings of $0.29 versus $3.34 in the prior year. For the next year, the market is expecting a contraction of 516.9% in earnings (-$1.21 versus $0.29).
  • The gross profit margin for DELEK US HOLDINGS INC is currently extremely low, coming in at 1.18%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.64% trails that of the industry average.

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