Delek Logistics Partners (NYSE:DKL) Sets New 1-Year High - Should You Buy?

Key Points

• Delek Logistics Partners reached a new 52-week high of $59.00, trading above its 50-day and 200-day moving averages. However, analysts maintain a consensus “Hold” rating with an average price target of $55.40, below the current price.
• The partnership reported mixed quarterly results, with EPS of $0.60 missing the $0.80 consensus estimate despite revenue of $297.47 million exceeding expectations.
• Delek Logistics raised its quarterly dividend to $1.135 per share, representing an annualized payout of $4.54 and a 7.7% yield. Its dividend payout ratio is high at 143.04%, which may raise sustainability concerns.

Delek Logistics Partners, L.P. (NYSE:DKL - Get Free Report) shares hit a new 52-week high during trading on Wednesday . The company traded as high as $59.00 and last traded at $59.2150, with a volume of 20897 shares. The stock had previously closed at $57.70.

Wall Street Analysts Forecast Growth

DKL has been the subject of several analyst reports. Weiss Ratings downgraded Delek Logistics Partners from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, May 12th. UBS Group started coverage on Delek Logistics Partners in a report on Thursday, July 16th. They set a "neutral" rating and a $56.00 price objective for the company. Zacks Research upgraded shares of Delek Logistics Partners from a "strong sell" rating to a "hold" rating in a research note on Monday, June 22nd. Raymond James Financial reaffirmed an "outperform" rating and issued a $60.00 target price on shares of Delek Logistics Partners in a report on Thursday, April 30th. Finally, Mizuho lifted their price target on shares of Delek Logistics Partners from $45.00 to $52.00 and gave the company a "neutral" rating in a report on Tuesday, April 21st. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $55.40.

Delek Logistics Partners Stock Up 1.8%

The business's fifty day simple moving average is $52.60 and its 200 day simple moving average is $51.77. The stock has a market cap of $3.12 billion, a price-to-earnings ratio of 18.74, a price-to-earnings-growth ratio of 0.62 and a beta of 0.47. The company has a current ratio of 0.96, a quick ratio of 0.92 and a debt-to-equity ratio of 386.77.

Delek Logistics Partners (NYSE:DKL - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The oil and gas producer reported $0.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.80 by ($0.20). The company had revenue of $297.47 million during the quarter, compared to the consensus estimate of $239.87 million. Delek Logistics Partners had a return on equity of 1,917.10% and a net margin of 16.00%. Equities analysts forecast that Delek Logistics Partners, L.P. will post 4.12 earnings per share for the current fiscal year.

Delek Logistics Partners Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 10th. Shareholders of record on Monday, August 3rd will be issued a dividend of $1.135 per share. This represents a $4.54 dividend on an annualized basis and a yield of 7.7%. This is an increase from Delek Logistics Partners's previous quarterly dividend of $1.13. The ex-dividend date is Monday, August 3rd. Delek Logistics Partners's dividend payout ratio (DPR) is 143.04%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Focus Financial Network Inc. increased its stake in Delek Logistics Partners by 2.2% in the second quarter. Focus Financial Network Inc. now owns 13,724 shares of the oil and gas producer's stock valued at $707,000 after purchasing an additional 300 shares in the last quarter. Avior Wealth Management LLC bought a new position in shares of Delek Logistics Partners during the second quarter worth $206,000. Infrastructure Capital Advisors LLC boosted its position in shares of Delek Logistics Partners by 2.4% during the first quarter. Infrastructure Capital Advisors LLC now owns 156,476 shares of the oil and gas producer's stock worth $7,786,000 after purchasing an additional 3,596 shares in the last quarter. Gateway Wealth Partners LLC acquired a new position in shares of Delek Logistics Partners in the 1st quarter valued at $222,000. Finally, State of Wyoming bought a new stake in shares of Delek Logistics Partners in the 1st quarter valued at $67,000. Institutional investors own 11.75% of the company's stock.

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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