20 Underperforming Stocks Targeted By Short Sellers

15. Delek US Holdings, Inc. (NYSE:DK)

Short interest: 14.72%

6 months’ performance: -23.47%

Delek US Holdings, Inc. operates a downstream energy business. It generates its revenue through the Logistics and Refining segments. The company serves independent refiners, government, oil companies, distributors, independent retail fuel operators, transportation companies, and others.

2024 proved to be a tough year for the company. It reported a 28.18% YoY annual revenue decline accompanied by a 10.5% YoY cash balance decrease. Delek‘s EBITDA went down by 108.96% YoY, indicating a significant decline. Although DK is focused on increasing cash flows in FY 2025, considering current conditions, it seems a bit challenging for the company.

The firm reiterated its 2025 guidance on the earnings call yesterday. For now, the company is focused on improving cash flows through cost controls and operational improvements.

The firm has faced lower production margins per barrel of crude oil over the past few years, mainly in its El Dorado refinery. The company’s supply and wholesale segments are also struggling. Due to the decreasing demand trends, these segments generated a loss of approximately $34 million. The firm keeps expanding losses in the supply business, which is putting pressure on profits and encouraging traders to short the stock