Delek Logistics Partners Reports Earnings Miss, Increases Dividend

Delek Logistics Partners (NYSE:DKL) announced its quarterly earnings on November 3, 2023, reporting an earnings per share (EPS) of $0.85. This figure fell short of analysts’ expectations, who had forecasted a consensus EPS of $1.11, marking a difference of $0.26. Despite this earnings miss, the company achieved a revenue of $261.28 million, surpassing predictions of $251.65 million, as reported by Zacks.

The firm recorded a remarkable return on equity of 1,224.47% and a net margin of 16.58%. Following the earnings announcement, DKL shares fell by $1.20, closing at $44.66 with a trading volume of 90,074 shares, notably higher than the average volume of 62,751 shares. Over the past year, the stock has seen a low of $34.59 and a high of $48.00.

Dividend Increase Announced

In a positive development, Delek Logistics Partners also declared a quarterly dividend of $1.12 per share, which is set to be distributed on November 13, 2023. This represents an increase from the previous dividend and translates to an annualized dividend of $4.48, yielding approximately 10.0%. The ex-dividend date is November 7, 2023, and the company’s payout ratio currently stands at 151.19%.

Insider Trading and Hedge Fund Activity

In other company news, director Charles J. Brown III sold 1,134 shares on August 20, 2023, at an average price of $42.91, totaling around $48,659.94. Following this sale, he retains 17,971 shares, valued at approximately $771,135.61. Over the past 90 days, insiders have sold 1,884 shares worth $82,410, with insiders holding 1.00% of the company’s stock.

Hedge funds have also made moves regarding their holdings in Delek Logistics. Osaic Holdings Inc. increased its stake by 245.8% in the second quarter, now owning 2,687 shares valued at $115,000. Similarly, HRT Financial LP raised its holdings by 278.3%, acquiring 74,704 shares worth $3,208,000. Institutional investors and hedge funds currently own 11.75% of the company.

Delek Logistics Partners continues to provide essential services in the oil and gas sector, including gathering, pipeline transportation, and storage solutions across the United States. As the company navigates fluctuating market conditions, its commitment to returning value through dividends and strategic growth remains evident.