JPMorgan Chase & Co. Cuts Kodiak Gas Services (NYSE:KGS) Price Target to $78.00

Key Points

• JPMorgan lowered Kodiak Gas Services’ price target from $79 to $78 while maintaining an “overweight” rating, implying approximately 45.6% upside from the stock’s $53.58 trading price.
• Analyst sentiment remains favorable, with 11 Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $77.90.
• Despite revenue rising 21.2% year over year to $391.1 million, Kodiak missed quarterly earnings expectations, reporting $0.55 per share versus the $0.67 consensus estimate.

Kodiak Gas Services (NYSE:KGS - Get Free Report) had its price objective cut by investment analysts at JPMorgan Chase & Co. from $79.00 to $78.00 in a research report issued on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 45.59% from the stock's current price.

KGS has been the topic of a number of other reports. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Kodiak Gas Services in a research note on Wednesday, August 26th. Royal Bank Of Canada increased their price target on shares of Kodiak Gas Services from $84.00 to $88.00 and gave the stock an "outperform" rating in a report on Thursday, August 13th. Barclays lowered their price objective on shares of Kodiak Gas Services from $72.00 to $67.00 and set an "overweight" rating on the stock in a research report on Monday. Stifel Nicolaus lifted their price objective on shares of Kodiak Gas Services from $90.00 to $92.00 and gave the stock a "buy" rating in a report on Tuesday, August 11th. Finally, Jefferies Financial Group cut their target price on shares of Kodiak Gas Services from $69.00 to $65.00 and set a "buy" rating for the company in a research report on Thursday. Eleven analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, Kodiak Gas Services has a consensus rating of "Moderate Buy" and an average target price of $77.90.

Kodiak Gas Services Price Performance

NYSE KGS traded down $1.06 during trading on Thursday, reaching $53.58. The company's stock had a trading volume of 1,926,947 shares, compared to its average volume of 1,712,452. The stock has a market capitalization of $5.43 billion, a PE ratio of 63.78 and a beta of 1.01. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.45 and a quick ratio of 1.15. The firm has a fifty day moving average of $58.79 and a 200 day moving average of $63.78. Kodiak Gas Services has a one year low of $32.55 and a one year high of $77.68.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.67 by ($0.12). Kodiak Gas Services had a net margin of 5.77% and a return on equity of 11.92%. The business had revenue of $391.12 million during the quarter, compared to analysts' expectations of $386.30 million. During the same period in the previous year, the business earned $0.43 EPS. The business's revenue was up 21.2% on a year-over-year basis. Analysts expect that Kodiak Gas Services will post 2.46 EPS for the current fiscal year.

Insider Activity

In other news, CEO Robert McKee sold 6,008 shares of the business's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $62.39, for a total value of $374,839.12. Following the completion of the sale, the chief executive officer owned 298,589 shares of the company's stock, valued at approximately $18,628,967.71. The trade was a 1.97% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO William Lenamon sold 1,000 shares of the stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $63.21, for a total value of $63,210.00. Following the sale, the chief operating officer owned 85,294 shares of the company's stock, valued at $5,391,433.74. This represents a 1.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 20,336 shares of company stock valued at $1,218,437. 0.64% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Kodiak Gas Services

A number of large investors have recently bought and sold shares of the stock. Public Employees Retirement System of Ohio bought a new position in shares of Kodiak Gas Services in the second quarter worth approximately $29,000. Core Capital Management & Research inc. bought a new stake in Kodiak Gas Services during the 2nd quarter valued at $64,000. Harbor Investment Advisory LLC bought a new stake in Kodiak Gas Services during the 2nd quarter valued at $76,000. Allworth Financial LP bought a new stake in Kodiak Gas Services during the 2nd quarter valued at $80,000. Finally, Hilltop National Bank purchased a new stake in Kodiak Gas Services during the 2nd quarter valued at $102,000. 24.95% of the stock is owned by hedge funds and other institutional investors.

Kodiak Gas Services Company Profile

Kodiak Gas Services, Inc NYSE: KGS provides contract natural gas compression services in the United States. The company helps oil and gas producers and midstream operators move natural gas through gathering systems, processing facilities, pipelines and other infrastructure by supplying and operating compression equipment.

Its services include the design, installation, commissioning, operation, maintenance and relocation of natural gas compression systems. Kodiak owns and manages a fleet of compressors that can be deployed for a range of applications, including gathering, processing, storage and transmission.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.