Kodiak Gas Services (NYSE:KGS) Shares Gap Down Following Weak Earnings

Kodiak Gas Services, Inc. (NYSE:KGS) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $40.56, but opened at $36.61. Kodiak Gas Services shares last traded at $37.64, with a volume of 453,306 shares traded.

The company reported $0.27 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.15). Kodiak Gas Services had a net margin of 2.23% and a return on equity of 7.91%. The business had revenue of $309.52 million during the quarter, compared to analysts’ expectations of $323.82 million.

Kodiak Gas Services Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, February 21st. Investors of record on Friday, February 14th were paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a yield of 4.74%. The ex-dividend date of this dividend was Friday, February 14th. Kodiak Gas Services’s dividend payout ratio (DPR) is presently 565.52%.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on KGS shares. Royal Bank of Canada raised their price target on shares of Kodiak Gas Services from $35.00 to $40.00 and gave the stock an “outperform” rating in a report on Monday, November 11th. The Goldman Sachs Group raised their target price on Kodiak Gas Services from $32.00 to $44.00 and gave the stock a “buy” rating in a research note on Tuesday, November 26th. Truist Financial boosted their price target on Kodiak Gas Services from $35.00 to $40.00 and gave the company a “buy” rating in a research note on Friday, November 8th. Mizuho increased their price objective on Kodiak Gas Services from $47.00 to $55.00 and gave the company an “outperform” rating in a report on Monday, February 3rd. Finally, Raymond James lifted their target price on Kodiak Gas Services from $35.00 to $39.00 and gave the stock an “outperform” rating in a report on Friday, November 8th. Two equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $41.09.

Insider Activity at Kodiak Gas Services

In related news, major shareholder Frontier Topco Partnership, L. sold 3,728,677 shares of the firm’s stock in a transaction on Thursday, January 30th. The shares were sold at an average price of $47.50, for a total transaction of $177,112,157.50. Following the sale, the insider now owns 34,771,323 shares in the company, valued at approximately $1,651,637,842.50. This trade represents a 9.68 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. FMR LLC increased its stake in shares of Kodiak Gas Services by 50.2% in the 4th quarter. FMR LLC now owns 7,342,296 shares of the company’s stock valued at $299,786,000 after purchasing an additional 2,452,492 shares in the last quarter. Zimmer Partners LP grew its holdings in Kodiak Gas Services by 88.1% in the fourth quarter. Zimmer Partners LP now owns 3,347,700 shares of the company’s stock valued at $136,687,000 after purchasing an additional 1,567,849 shares during the period. Invesco Ltd. increased its position in shares of Kodiak Gas Services by 1.1% in the fourth quarter. Invesco Ltd. now owns 2,942,782 shares of the company’s stock valued at $120,154,000 after buying an additional 32,966 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Kodiak Gas Services by 52.3% in the fourth quarter. Vanguard Group Inc. now owns 2,659,015 shares of the company’s stock valued at $108,568,000 after buying an additional 913,104 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD raised its stake in shares of Kodiak Gas Services by 14.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,650,183 shares of the company’s stock worth $67,379,000 after buying an additional 202,050 shares during the period. Institutional investors and hedge funds own 24.95% of the company’s stock.

Kodiak Gas Services Stock Down 14.6 %

The business has a 50-day moving average price of $44.57 and a 200-day moving average price of $37.14. The stock has a market cap of $3.03 billion, a PE ratio of 119.40 and a beta of 1.30. The company has a current ratio of 1.27, a quick ratio of 0.93 and a debt-to-equity ratio of 1.86.

Kodiak Gas Services Company Profile

Kodiak Gas Services, Inc operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil.