Delek Logistics Partners, L.P. (NYSE:DKL) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Analyst sentiment is broadly neutral: Seven brokerages assign Delek Logistics Partners an average “Hold” rating, with a consensus 12-month price target of $55.40.
• Income remains a key attraction: The company raised its quarterly dividend to $1.135, equivalent to a $4.54 annualized payout and an 8.3% yield, though its payout ratio is elevated at 158.19%.
• Recent operating results were mixed: Quarterly EPS of $0.54 fell short of the $0.93 consensus estimate, while revenue of $384.76 million exceeded expectations; insiders also purchased $750,000 of shares over the past three months.

Shares of Delek Logistics Partners, L.P. (NYSE:DKL - Get Free Report) have been given a consensus recommendation of "Hold" by the seven research firms that are presently covering the stock, MarketBeat Ratings reports. Five equities research analysts have rated the stock with a hold rating, one has issued a buy rating and one has given a strong buy rating to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $55.40.

A number of research firms have recently commented on DKL. Raymond James Financial restated an "outperform" rating and issued a $60.00 price target on shares of Delek Logistics Partners in a report on Thursday, April 30th. Weiss Ratings cut shares of Delek Logistics Partners from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, August 21st. Zacks Research upgraded shares of Delek Logistics Partners from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 7th. Finally, UBS Group started coverage on shares of Delek Logistics Partners in a research report on Thursday, July 16th. They set a "neutral" rating and a $56.00 target price on the stock.

Delek Logistics Partners Trading Up 0.2%

Shares of NYSE DKL opened at $54.81 on Friday. Delek Logistics Partners has a fifty-two week low of $42.35 and a fifty-two week high of $61.50. The company has a debt-to-equity ratio of 386.77, a quick ratio of 0.91 and a current ratio of 0.96. The company has a market cap of $3.14 billion, a price-to-earnings ratio of 19.10 and a beta of 0.46. The business's 50 day moving average price is $54.75 and its 200-day moving average price is $52.85.

Delek Logistics Partners (NYSE:DKL - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The oil and gas producer reported $0.54 EPS 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 business had revenue of $384.76 million during the quarter, compared to the consensus estimate of $293.64 million. On average, sell-side analysts expect that Delek Logistics Partners will post 3.94 earnings per share for the current year.

Delek Logistics Partners Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Monday, August 3rd were paid a $1.135 dividend. This represents a $4.54 annualized dividend and a yield of 8.3%. This is an increase from Delek Logistics Partners's previous quarterly dividend of $1.13. The ex-dividend date of this dividend was Monday, August 3rd. Delek Logistics Partners's payout ratio is currently 158.19%.

Insider Activity at Delek Logistics Partners

In other news, President Avigal Soreq purchased 2,500 shares of the company's stock in a transaction dated Thursday, August 13th. The shares were acquired at an average price of $50.00 per share, with a total value of $125,000.00. Following the transaction, the president owned 84,782 shares of the company's stock, valued at $4,239,100. This represents a 3.04% 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 this link. Also, EVP Robert G. Wright purchased 1,500 shares of the business's stock in a transaction dated Thursday, August 13th. The shares were purchased at an average price of $50.00 per share, for a total transaction of $75,000.00. Following the purchase, the executive vice president owned 7,994 shares of the company's stock, valued at approximately $399,700. This trade represents a 23.10% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 15,000 shares of company stock worth $750,000 over the last three months. Corporate insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Delek Logistics Partners by 24.4% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,523,062 shares of the oil and gas producer's stock valued at $65,416,000 after purchasing an additional 298,867 shares during the period. Alps Advisors Inc. boosted its stake in shares of 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. NEOS Investment Management LLC boosted its stake in shares of Delek Logistics Partners by 56.0% during the second quarter. NEOS Investment Management LLC now owns 173,361 shares of the oil and gas producer's stock valued at $8,935,000 after purchasing an additional 62,267 shares in the last quarter. HRT Financial LP increased its holdings in Delek Logistics Partners by 278.3% during 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 buying an additional 54,959 shares during the period. Finally, Raymond James Financial Inc. increased its holdings in Delek Logistics Partners by 30.8% during 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 buying an additional 48,284 shares during the period. 11.75% of the stock is currently owned by institutional investors.

Delek Logistics Partners Company Profile

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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