Spiegel Reuven, the Executive Vice President and Chief Financial Officer of Delek Logistics Partners, LP (NYSE:DKL), recently acquired 1,282 common units of the company, valued at approximately $49,998. The purchase, which took place on October 10, 2024, was part of a direct participation in an underwritten offering of common units by the company. Following this transaction, Reuven holds a total of 20,223 common units in the company.
In other recent news, Delek Logistics Partners reported record second-quarter earnings with an adjusted EBITDA of $102.4 million. The company has undertaken several strategic transactions, including an extended contract with DK, an investment in a new gas processing plant, and the acquisition of H2O Midstream. These developments are expected to strengthen Delek Logistics' market position in the Permian Basin.
Citi has upgraded its rating on Delek Logistics from Neutral to Buy, noting an improved outlook and high yield potential. The firm also raised the price target to $45 from the previous $44, reflecting confidence in the company's future performance.
Looking ahead, analysts expect Delek Logistics to see a significant improvement in Q4 2024, mainly due to the full accounting of its H2O Midstream acquisition. They also anticipate an increase in the company's quarterly distribution, reflecting its strong performance. By the first half of 2025, the majority of Delek Logistics' EBITDA is projected to come from non-related parties, positioning it as a mostly independent midstream company.
InvestingPro Insights
The recent acquisition of Delek Logistics Partners, LP (NYSE:DKL) units by CFO Spiegel Reuven comes at an interesting time for the company. According to InvestingPro data, DKL's stock is currently trading near its 52-week low, with a price that is 73.14% of its 52-week high. This could suggest that Reuven sees value in the company's units at current levels.
Despite the recent stock performance, DKL boasts a robust dividend yield of 11.08%, which aligns with an InvestingPro Tip indicating that the company "pays a significant dividend to shareholders." Furthermore, DKL has maintained dividend payments for 12 consecutive years and has raised its dividend for 11 consecutive years, demonstrating a strong commitment to shareholder returns.
The company's financial health appears solid, with a P/E ratio of 13.39 and a market capitalization of $2 billion. These metrics, combined with the fact that DKL has been profitable over the last twelve months, suggest that the company's fundamentals may support the insider's decision to increase their stake.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for DKL, providing a deeper understanding of the company's financial position and market performance.
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