Delek Logistics Partners (NYSE:DKL) Stock Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Delek Logistics Partners shares rose above their 200-day moving average, reaching $55.75 and last trading near $55.62. Analysts’ average rating remains “Hold,” with an average price target of $55.40.
• The company missed quarterly EPS expectations, reporting $0.54 versus the $0.93 consensus, although revenue of $384.76 million exceeded estimates. Its high leverage and payout ratio of 158.19% remain notable risks.
• Delek Logistics increased its quarterly dividend to $1.135 per share, implying an annualized yield of about 8.2%; insiders and several institutional investors also increased their holdings.

Shares of Delek Logistics Partners, L.P. (NYSE:DKL - Get Free Report) crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $52.93 and traded as high as $55.75. Delek Logistics Partners shares last traded at $55.6150, with a volume of 50,165 shares traded.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the company. Weiss Ratings cut Delek Logistics Partners from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, August 21st. Zacks Research upgraded Delek Logistics Partners from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. Finally, UBS Group began coverage on Delek Logistics Partners in a report on Thursday, July 16th. They issued a "neutral" rating and a $56.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Delek Logistics Partners presently has an average rating of "Hold" and an average price target of $55.40.

Delek Logistics Partners Stock Performance

The company has a current ratio of 0.96, a quick ratio of 0.91 and a debt-to-equity ratio of 386.77. The stock's 50 day moving average is $55.41 and its 200 day moving average is $52.93. The stock has a market capitalization of $3.18 billion, a price-to-earnings ratio of 19.38 and a beta of 0.44.

Delek Logistics Partners (NYSE:DKL - Get Free Report) last announced its earnings results on Wednesday, August 5th. The oil and gas producer reported $0.54 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 business had revenue of $384.76 million for the quarter, compared to analyst estimates of $293.64 million. On average, 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 business also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Monday, August 3rd were given a dividend of $1.135 per share. The ex-dividend date was Monday, August 3rd. This represents a $4.54 annualized dividend and a dividend yield of 8.2%. This is an increase from Delek Logistics Partners's previous quarterly dividend of $1.13. Delek Logistics Partners's payout ratio is presently 158.19%.

Insider Transactions at Delek Logistics Partners

In related news, Chairman Ezra Yemin bought 6,000 shares of Delek Logistics Partners stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average price of $50.00 per share, with a total value of $300,000.00. Following the purchase, the chairman owned 168,217 shares in the company, valued at $8,410,850. This represents a 3.70% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Robert Wright bought 1,500 shares of the stock in a transaction on Thursday, August 13th. The shares were bought at an average price of $50.00 per share, for a total transaction of $75,000.00. Following the acquisition, the executive vice president owned 7,994 shares in the company, valued at $399,700. The trade was a 23.10% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 15,000 shares of company stock worth $750,000 in the last quarter. Insiders own 1.00% of the company's stock.

Institutional Trading of Delek Logistics Partners

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of 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 worth $65,416,000 after purchasing an additional 298,867 shares during the period. Alps Advisors Inc. increased its stake in shares of 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 during the last quarter. NEOS Investment Management LLC increased its stake in shares of Delek Logistics Partners by 56.0% during the 2nd quarter. NEOS Investment Management LLC now owns 173,361 shares of the oil and gas producer's stock valued at $8,935,000 after acquiring an additional 62,267 shares during the last quarter. HRT Financial LP lifted its holdings in shares of Delek Logistics Partners by 278.3% during the 2nd quarter. HRT Financial LP now owns 74,704 shares of the oil and gas producer's stock worth $3,208,000 after acquiring an additional 54,959 shares during the period. Finally, Raymond James Financial Inc. boosted 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 worth $8,806,000 after acquiring an additional 48,284 shares during the last quarter. Hedge funds and other institutional investors own 11.75% of the company's stock.

About Delek Logistics Partners

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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