Israel Joseph, Executive Vice President of Operations at Delek Logistics Partners, LP (NYSE:DKL), recently acquired 3,076 common units of the company. The purchase, made on October 10, amounted to a total value of $119,964, with each unit priced at $39. This acquisition was part of a direct participation in an underwritten offering by the issuer. Following this transaction, Joseph holds a total of 13,782 common units directly.
In other recent news, Delek Logistics Partners reported record second-quarter earnings with an adjusted EBITDA of $102.4 million. The company has announced several strategic transactions, including an extended contract with DK, an investment in a new gas processing plant, and the acquisition of H2O Midstream. These moves are aimed at strengthening Delek Logistics' market position in the Permian Basin. The Board of Directors approved an increase in the quarterly distribution to $1.09 per unit, reflecting the company's strong performance.
Citi upgraded its rating on Delek Logistics from Neutral to Buy, citing an improved outlook and high yield potential. The upgrade follows strategic updates that Citi believes have not been fully appreciated by the market. The firm also raised the price target to $45 from the previous $44.
Looking ahead, the majority of Delek Logistics' EBITDA is projected to come from non-related parties by the first half of 2025, making it a mostly independent midstream company. The fourth quarter of 2024 is expected to show a significant improvement, as Delek Logistics will fully account for its acquisition of H2O Midstream for the first time. Analysts are keenly awaiting updates on several fronts during the upcoming quarter, particularly the progress of strategic initiatives announced in the previous quarter.
InvestingPro Insights
Israel Joseph's recent acquisition of Delek Logistics Partners, LP (NYSE:DKL) units aligns with several positive indicators highlighted by InvestingPro. The company's stock is currently trading near its 52-week low, which may have presented an attractive entry point for the executive. This purchase comes at a time when DKL boasts a high shareholder yield and pays a significant dividend to its investors.
According to InvestingPro data, DKL's dividend yield stands at an impressive 11.08%, with the company having raised its dividend for 11 consecutive years. This consistent dividend growth, coupled with a 6.34% increase in the last twelve months, underscores the company's commitment to returning value to shareholders.
Despite recent market volatility, with the stock taking a big hit over the last week (-11.91% total return), DKL's long-term performance remains strong. The company has delivered a robust return over the last five years, suggesting resilience in its business model. Additionally, with a P/E ratio of 13.39, the stock appears reasonably valued compared to its earnings.
InvestingPro Tips also indicate that analysts predict DKL will be profitable this year, which is supported by the company's profitability over the last twelve months. This positive outlook may have influenced Joseph's decision to increase his stake in the company.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for DKL, providing deeper insights into the company's financial health and market position.
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