Delek Group, the parent company of Brentwood-based Delek US Holdings, announced over the weekend it has agreed to sell its European operations.
The Tel Aviv-based company is selling Delek Europe BV for approximately $485 million to an unnamed foreign fund.
Shares of the U.S. subsidiary (Ticker: DK) were down very slightly Monday morning to $28.56.
Delek US Holdings director Carlos Jorda exercised a set of stock options Friday, buying nearly 11,500 shares for almost $97,500. After forfeiting nearly 700 shares to cover some of his costs, Jorda sold the remaining shares and booked a profit of nearly $227,000.
Shares of Delek (Ticker: DK) were up 8 cents to $31.18 Tuesday.
The board of directors of Delek US Holdings has declared a special dividend of 10 cents per share. It's the 10th such payout since the beginning of 2012 and will be paid in mid-July to shareholders of record as of June 26. Shares of Delek (Ticker: DK) are down 12 percent so far this year.
Deutsche Bank analyst Paul Trussell has downgraded shares of Dollar General (Ticker: DG) to 'hold' from 'buy' and lowered his price target from $65 to $60 — less than 10 percent above where the shares opened Wednesday trading. Recommending that investors take a step back from the dollar store group, Trussell said he is concerned about margin pressures and same-store sales holding up: "The biggest challenge, in our view, is for DG to grow SSS 3-4% while maintaining flat to up GPM (ex. Tobacco) given a sharp pricing environment" driven by Walmart, Target and Family Dollar.
Analysts at Bank of America Merrill Lynch have begun covering Delek US Holdings with a 'neutral' rating and a price target of $34. That leaves about 15 percent of upside for Delek (Ticker: DK), which rose 2 percent Wednesday to $30.20.
Delek US Holdings has a new 5 percent owner in the form of Point72 Asset Management, the firm formerly called SAC Capital and run by Steven Cohen, who late last year pleaded guilty to securities fraud. Point72 on Wednesday filed papers with the Securities and Exchange Commission saying it ended last week owning almost 3.7 million shares, or 6.2 percent, of Brentwood-based Delek. That was up from just 1.1 million on March 31 and makes Point72 the largest owner of Delek US (Ticker: DK) that is not affiliated with Israel-based Delek Group. (Not coincidentally, Delek Group last week sold more than 10 million Delek US shares.)
The investment banks handling the latest sale of Delek US Holdings shares by the Israeli holding company Delek Group drummed up enough investor interest to add another 1.4 million shares to the offering. That has pushed down Delek Group's stake in Brentwood-based Delek US — which was 30 percent last summer — to 7.5 percent. Shares of Delek US (Ticker: DK) recovered a bit Friday from earlier losses to close at $30.42. Year to date, they're down 11 percent.
Israel-based Delek Group has launched the sale of 9.2 million shares of Delek US Holdings, a move that will cut its stake in the Brentwood-based oil refiner and marketer to less than 10 percent — down from more than 50 percent in March of last year. Underwriters Barclays, BofA Merrill Lynch, Wells Fargo Securities, Goldman Sachs and RBC Capital Markets have the option to unload another 1.4 million shares if investor demand is strong enough. Shares of Delek (Ticker: DK) were off about 2 percent to $31.55 in after-hours trading Tuesday.