Key Points
- Chairman Ezra Uzi Yemin bought 6,000 DKL shares for $300,000, increasing his holdings by 3.7% to 168,217 shares—an indication of management confidence.
- Delek Logistics raised its quarterly distribution to $1.135 per share, implying a $4.54 annual payout and an 8.5% yield, although its 158.19% payout ratio is elevated.
- The company’s latest earnings missed expectations, with quarterly EPS of $0.54 versus the $0.93 consensus; analysts nevertheless maintain a “Moderate Buy” consensus with an average price target of $55.40, while elevated leverage and a planned unit offering pose risks.
Delek Logistics Partners, L.P. (NYSE:DKL - Get Free Report) EVP Reuven Spiegel acquired 1,000 shares of the firm's stock in a transaction dated Thursday, August 13th. The stock was bought at an average cost of $50.00 per share, with a total value of $50,000.00. Following the acquisition, the executive vice president owned 29,549 shares in the company, valued at approximately $1,477,450. This trade represents a 3.50% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.
Delek Logistics Partners Stock Down 0.6%
Shares of DKL opened at $53.66 on Tuesday. The company has a market capitalization of $2.85 billion, a price-to-earnings ratio of 18.70 and a beta of 0.46. Delek Logistics Partners, L.P. has a 52 week low of $42.35 and a 52 week high of $61.50. The stock's 50-day moving average price is $54.30 and its 200-day moving average price is $52.69. The company has a quick ratio of 0.91, a current ratio of 0.96 and a debt-to-equity ratio of 386.77.
Delek Logistics Partners (NYSE:DKL - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The oil and gas producer reported $0.54 earnings per share for the quarter, missing the consensus estimate of $0.93 by ($0.39). Delek Logistics Partners had a net margin of 12.85% and a negative return on equity of 935.80%. The company had revenue of $384.76 million for the quarter, compared to analysts' expectations of $293.64 million. On average, sell-side analysts predict that Delek Logistics Partners, L.P. will post 3.94 EPS for the current year.
Delek Logistics Partners Increases Dividend
The company also recently announced a quarterly dividend, which was paid on Monday, August 10th. Stockholders of record on Monday, August 3rd were issued a dividend of $1.135 per share. This is a positive change from Delek Logistics Partners's previous quarterly dividend of $1.13. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $4.54 annualized dividend and a dividend yield of 8.5%. Delek Logistics Partners's payout ratio is presently 158.19%.
Wall Street Analyst Weigh In
A number of brokerages recently issued reports on DKL. Raymond James Financial reissued an "outperform" rating and set a $60.00 price target on shares of Delek Logistics Partners in a report on Thursday, April 30th. Zacks Research upgraded shares of Delek Logistics Partners from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. UBS Group assumed coverage on shares of Delek Logistics Partners in a research note on Thursday, July 16th. They set a "neutral" rating and a $56.00 target price on the stock. Weiss Ratings restated a "buy (b-)" rating on shares of Delek Logistics Partners in a research report on Friday, August 7th. Finally, Mizuho lifted their price target on Delek Logistics Partners from $45.00 to $52.00 and gave the company a "neutral" rating in a research note on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $55.40.
View Our Latest Stock Report on Delek Logistics Partners
Trending Headlines about Delek Logistics Partners
Here are the key news stories impacting Delek Logistics Partners this week:
- Positive Sentiment: Company insiders made a combined investment of approximately $750,000 in DKL units on August 13. Chairman Ezra Uzi Yemin purchased 6,000 units, while President Avigal Soreq and EVPs Robert Wright, Reuven Spiegel and Mark Hobbs also bought shares. The purchases increased their individual holdings by roughly 3% to 23%, signaling management confidence in the partnership’s valuation and prospects. Chairman insider purchase filing
- Positive Sentiment: Delek Logistics raised its quarterly distribution for the third time this year, extending its record to 54 consecutive quarters of dividend growth. The increase reinforces DKL’s appeal to income-focused investors and indicates continued confidence in distributable cash flow. Dividend increase article
- Negative Sentiment: DKL announced a public offering of common units. Although the proceeds could support growth or balance-sheet needs, issuing additional units may dilute existing unitholders and pressure the unit price in the near term. The offering also adds to investor concerns given the partnership’s elevated leverage. Common-unit offering announcement
Institutional Investors Weigh In On Delek Logistics Partners
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Delek Logistics Partners by 24.4% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,523,062 shares of the oil and gas producer's stock worth $65,416,000 after acquiring an additional 298,867 shares during the period. Alps Advisors Inc. lifted its holdings in Delek Logistics Partners by 3.8% during the fourth quarter. Alps Advisors Inc. now owns 4,489,123 shares of the oil and gas producer's stock valued at $200,305,000 after purchasing an additional 165,741 shares in the last quarter. HRT Financial LP grew its position in shares of Delek Logistics Partners by 278.3% in the second quarter. HRT Financial LP now owns 74,704 shares of the oil and gas producer's stock valued at $3,208,000 after purchasing an additional 54,959 shares during the period. Raymond James Financial Inc. grew its position in shares of Delek Logistics Partners by 30.8% in the second quarter. Raymond James Financial Inc. now owns 205,036 shares of the oil and gas producer's stock valued at $8,806,000 after purchasing an additional 48,284 shares during the period. Finally, Pinnacle Holdings LLC purchased a new stake in shares of Delek Logistics Partners during the second quarter worth about $1,703,000. Hedge funds and other institutional investors own 11.75% of the company's stock.
Delek Logistics Partners Company Profile
(
Get Free Report)
Delek Logistics Partners L.P. (NYSE: DKL) is a master limited partnership formed in 2011 through contributions of pipeline, terminal and crude oil gathering assets by its sponsor, Delek US Holdings, Inc Headquartered in Brentwood, Tennessee, the partnership is managed by Delek Logistics GP, LLC, an affiliate of Delek US. Delek Logistics Partners owns and operates an integrated network of petroleum pipelines and terminals that support the movement, storage and throughput of crude oil and refined products.
The partnership's core operations include crude oil gathering and processing systems, long-haul pipeline transportation and storage terminal services.
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