Delek Logistics Partners LP [DKL] Stock trading around $43.50 per share: What’s Next?

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Delek Logistics Partners LP [NYSE: DKL] stock went on a downward path that fall over -3.76% on Friday, amounting to a one-week price decrease of less than -18.81%. The company report on June 1, 2022 that Delek Logistics Partners, LP Announces Closing of Acquisition from 3Bear Energy.


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Delek Logistics Partners, LP (NYSE: DKL) announced today the closing of the previously announced acquisition of 3Bear Delaware Holding – NM, LLC (“3Bear”), an indirect subsidiary of 3Bear Energy, LLC. The 3Bear operations include crude oil and gas gathering, processing and transportation businesses, as well as water disposal and recycling operations in the Delaware Basin in New Mexico. Total cash consideration is $624.7 million (excluding customary closing adjustments) and the acquisition is expected to result in an investment multiple of approximately 6.25 times preliminary forecasted 2023 EBITDA. The transaction is being funded with cash and debt financing.

3Bear has built a premier crude, gas and water gathering, processing and disposal business in the Northern Delaware Basin. 3Bear’s assets are anchored by ~350,000 dedicated acres and long-term fixed fee contracts. The asset base includes approximately 485 miles of pipelines, 88 million cubic feet per day of cryogenic natural gas processing capacity, 120 MBbl of crude storage capacity and 200 MBbl/d of water disposal capacity. The acquired entity will be part of a newly formed, wholly owned subsidiary of Delek Logistics Partners, LP named “DKL Delaware Gathering Company, LLC”.

Over the last 12 months, DKL stock rose by 2.62%. The one-year Delek Logistics Partners LP stock forecast points to a potential upside of 14.71. The average equity rating for DKL stock is currently 3.00, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $1.96 billion, with 43.47 million shares outstanding and 8.70 million shares in the current float. Compared to the average trading volume of 68.29K shares, DKL stock reached a trading volume of 87209 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Delek Logistics Partners LP [DKL]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DKL shares is $51.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DKL stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Credit Suisse have made an estimate for Delek Logistics Partners LP shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on April 21, 2020. The new note on the price target was released on April 14, 2020, representing the official price target for Delek Logistics Partners LP stock. Previously, the target price had yet another raise to $33, while Wells Fargo analysts kept a Underweight rating on DKL stock.

The Average True Range (ATR) for Delek Logistics Partners LP is set at 2.27, with the Price to Sales ratio for DKL stock in the period of the last 12 months amounting to 2.60. Price to Free Cash Flow for DKL in the course of the last twelve months was 9.83 with Quick ratio for the last quarter at 0.30.

DKL Stock Performance Analysis:

Delek Logistics Partners LP [DKL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -18.81. With this latest performance, DKL shares dropped by -16.27% in over the last four-week period, additionally sinking by -2.31% over the last 6 months – not to mention a rise of 2.62% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DKL stock in for the last two-week period is set at 28.63, with the RSI for the last a single of trading hit 19.81, and the three-weeks RSI is set at 34.77 for Delek Logistics Partners LP [DKL]. The present Moving Average for the last 50 days of trading for this stock 51.24, while it was recorded at 47.51 for the last single week of trading, and 46.17 for the last 200 days.

Insight into Delek Logistics Partners LP Fundamentals:

Delek Logistics Partners LP’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.30 and a Current Ratio set at 0.30.

DKL Stock EPS

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DKL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Delek Logistics Partners LP go to 13.11%.

Delek Logistics Partners LP [DKL] Insider Position Details

There are presently around $245 million, or 10.90% of DKL stock, in the hands of institutional investors. The top three institutional holders of DKL stocks are: INVESCO LTD. with ownership of 1,908,842, which is approximately 0% of the company’s market cap and around 0.80% of the total institutional ownership; MIRAE ASSET GLOBAL INVESTMENTS CO., LTD., holding 1,787,830 shares of the stock with an approximate value of $77.77 million in DKL stocks shares; and CLEARBRIDGE INVESTMENTS, LLC, currently with $17.65 million in DKL stock with ownership of nearly 0% of the company’s market capitalization.

21 institutional holders increased their position in Delek Logistics Partners LP [NYSE:DKL] by around 1,220,862 shares. Additionally, 20 investors decreased positions by around 320,848 shares, while 24 investors held positions by with 4,082,306 shares. The mentioned changes placed institutional holdings at 5,624,016 shares, according to the latest SEC report filing. DKL stock had 3 new institutional investments in for a total of 33,902 shares, while 7 institutional investors sold positions of 34,744 shares during the same period.

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