Delek Logistics Partners (NYSE:DKL) Share Price Breaks Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Delek Logistics Partners shares rose above their 200-day moving average, reaching $56.78 and last trading near $56.45, compared with a 200-day average of $53.32.
• Analyst sentiment remains cautious: the stock has an average rating of “Hold” and an average price target of $55.60, despite one firm upgrading the shares to “Buy.”
• The partnership raised its quarterly dividend to $1.135, equivalent to an annualized $4.54 payout and an approximately 8% yield; however, its latest earnings missed expectations, with EPS of $0.54 versus a $0.93 consensus estimate.

Shares of Delek Logistics Partners, L.P. (NYSE:DKL - Get Free Report) passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $53.32 and traded as high as $56.78. Delek Logistics Partners shares last traded at $56.4450, with a volume of 47,182 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on DKL shares. Zacks Research lowered Delek Logistics Partners from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 22nd. UBS Group lifted their price objective on shares of Delek Logistics Partners from $55.00 to $57.00 and gave the company a "neutral" rating in a research report on Monday, September 21st. Finally, Weiss Ratings raised shares of Delek Logistics Partners from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, October 2nd. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $55.60.

Delek Logistics Partners Price Performance

The stock has a market cap of $3.23 billion, a price-to-earnings ratio of 19.67 and a beta of 0.47. The company's 50 day moving average is $55.57 and its 200 day moving average is $53.32.

Delek Logistics Partners (NYSE:DKL - Get Free Report) last issued its 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 negative return on equity of 935.80% and a net margin of 12.85%. The company had revenue of $384.76 million for the quarter, compared to analyst estimates of $293.64 million. Sell-side analysts predict that Delek Logistics Partners, L.P. will post 3.94 earnings per share for the current year.

Delek Logistics Partners Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Monday, August 3rd were issued a $1.1350 dividend. The ex-dividend date was Monday, August 3rd. This represents a $4.54 dividend on an annualized basis and a dividend yield of 8.0%. This is an increase from Delek Logistics Partners's previous quarterly dividend of $1.13. Delek Logistics Partners's payout ratio is currently 158.19%.

Insider Transactions at Delek Logistics Partners

In other news, EVP Robert G. Wright bought 1,500 shares of the firm's stock in a transaction on Thursday, August 13th. The shares were bought at an average cost of $50.00 per share, for a total transaction of $75,000.00. Following the completion of the transaction, the executive vice president owned 7,994 shares in the company, valued at $399,700. This trade represents a 23.10% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Ezra Yemin bought 6,000 shares of the stock in a transaction on Thursday, August 13th. The stock was purchased at an average cost of $50.00 per share, for a total transaction of $300,000.00. Following the acquisition, the chairman directly owned 168,217 shares of the company's stock, valued at $8,410,850. The trade was a 3.70% 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 ninety days. 1.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Delek Logistics Partners

Institutional investors and hedge funds have recently made changes to their positions in the business. Alps Advisors Inc. increased its holdings in Delek Logistics Partners by 3.8% during the 4th quarter. Alps Advisors Inc. now owns 4,489,123 shares of the oil and gas producer's stock valued at $200,305,000 after acquiring an additional 165,741 shares in the last quarter. NEOS Investment Management LLC raised its position in 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 worth $8,935,000 after acquiring an additional 62,267 shares during the last quarter. Infrastructure Capital Advisors LLC lifted its holdings in shares of Delek Logistics Partners by 2.4% in the first quarter. Infrastructure Capital Advisors LLC now owns 156,476 shares of the oil and gas producer's stock valued at $7,786,000 after purchasing an additional 3,596 shares in the last quarter. Castellan Group lifted its holdings in shares of Delek Logistics Partners by 7.6% in the first quarter. Castellan Group now owns 91,162 shares of the oil and gas producer's stock valued at $4,536,000 after purchasing an additional 6,430 shares in the last quarter. Finally, Adams Asset Advisors LLC grew its position in shares of Delek Logistics Partners by 5.2% in the third quarter. Adams Asset Advisors LLC now owns 73,963 shares of the oil and gas producer's stock valued at $3,936,000 after purchasing an additional 3,675 shares during the last quarter. 11.75% of the stock is currently owned by hedge funds and other institutional investors.

About Delek Logistics Partners

Delek Logistics Partners, LP is a publicly traded master limited partnership that owns and operates midstream energy infrastructure in the United States. The partnership is affiliated with Delek US Holdings, Inc and primarily supports the transportation, storage and distribution of crude oil, refined products and other hydrocarbons.

Its assets include crude oil and refined-products pipelines, gathering systems, terminals, storage facilities and other logistics infrastructure. Delek Logistics also provides transportation, marketing and other logistics services that connect petroleum producers, refineries, terminals and downstream markets.

The partnership's operations are concentrated in the central and southwestern United States, including areas of Texas, New Mexico, Oklahoma, Arkansas and Tennessee.

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