Delek Logistics Partners Downgraded On Operational Concerns

Harold Goldmeier
3.62K Followers
(10min)

Summary

  • Delek Logistics Partners LP is rated as a hold at $44 due to its fair valuation and high dividend yield despite debt concerns.
  • Positive industry trends and political banter about the energy industry boost prospects for higher stock prices, but insider selling and debt-financed growth raise red flags.
  • Acquisitions are the company's growth path, yet the strategy increases debt and issuing shares dilutes shareholders.

Aerial View of a Texas Oil Refinery and Fuel Storage Tanks

Art Wager

Influencers Influence Investors

In our November 2024 article, we upgraded the energy company stock of Delek Logistics Partners LP Common Units (NYSE:DKL) and assessed it as a buy opportunity. The price then was $38.75. The trend among insiders

This article was written by

3.62K Followers
I write for retail value investors who cannot afford to lose money but sometimes like to take a risk. I speak for free to community and school groups. I was teaching business, social/political activism, and Middle East politics to international university students in Tel Aviv b4 the pandemic hit. A college in Jerusalem hired me to teach business and American Politics beginning in the fall of 2023. I consult with startups and mid-level companies. I co-manage Goldmeier Investments LLC with my son Daniel. I founded the Sappanos Decorating Centers, Chicago, with more than 70 employees and real estate holdings in excess of $15m. I am a former Research and Teaching Fellow at Harvard and Assoc. Prof Tufts Medical School.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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