Kinetik (NYSE:KNTK) Given New $67.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley lowered Kinetik’s price target to $67 from $70 while maintaining an “overweight” rating, implying roughly 21% upside from the prior close.
• Analyst sentiment remains favorable, with Kinetik holding a consensus “Moderate Buy” rating and an average target price of $55.47; recent targets from other firms range from $54 to $58.
• Kinetik reported strong quarterly results, earning $0.64 per share versus the $0.19 consensus estimate and generating $581.44 million in revenue, up 36.3% year over year. Shares recently traded at $55.39, near their 52-week high.

Kinetik (NYSE:KNTK - Get Free Report) had its price target reduced by stock analysts at Morgan Stanley from $70.00 to $67.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Morgan Stanley's price objective would indicate a potential upside of 20.96% from the company's previous close.

KNTK has been the subject of a number of other reports. Royal Bank Of Canada lifted their target price on Kinetik from $57.00 to $58.00 and gave the company an "outperform" rating in a report on Wednesday, October 14th. JPMorgan Chase & Co. upped their price target on Kinetik from $54.00 to $57.00 and gave the stock an "overweight" rating in a report on Tuesday, July 14th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $58.00 price target on shares of Kinetik in a research report on Wednesday, October 14th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $54.00 price target (down from $56.00) on shares of Kinetik in a research report on Monday. Finally, Weiss Ratings upgraded Kinetik from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, August 11th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $55.47.

Kinetik Price Performance

Shares of NYSE KNTK traded up $0.87 during midday trading on Wednesday, hitting $55.39. The company's stock had a trading volume of 280,456 shares, compared to its average volume of 1,177,130. The firm has a market capitalization of $8.99 billion, a price-to-earnings ratio of 20.07, a price-to-earnings-growth ratio of 1.25 and a beta of 0.61. The business's fifty day simple moving average is $53.72 and its two-hundred day simple moving average is $50.24. Kinetik has a 1 year low of $31.33 and a 1 year high of $56.92.

Kinetik (NYSE:KNTK - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.45. Kinetik had a net margin of 26.19% and a negative return on equity of 38.96%. The firm had revenue of $581.44 million for the quarter, compared to the consensus estimate of $421.48 million. During the same period in the prior year, the firm earned $0.33 EPS. The firm's revenue for the quarter was up 36.3% on a year-over-year basis. Analysts anticipate that Kinetik will post 1.40 EPS for the current fiscal year.

Insiders Place Their Bets

In other Kinetik news, major shareholder Isq Global Fund Ii Gp Llc sold 2,000,000 shares of Kinetik stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $54.77, for a total transaction of $109,540,000.00. Following the completion of the sale, the insider directly owned 1 shares of the company's stock, valued at $54.77. The trade was a 100.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders sold 3,931,632 shares of company stock valued at $211,967,059 in the last 90 days. 3.56% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Allworth Financial LP increased its position in shares of Kinetik by 72.4% during the second quarter. Allworth Financial LP now owns 569 shares of the company's stock worth $28,000 after purchasing an additional 239 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new stake in shares of Kinetik in the 2nd quarter valued at about $71,000. Nykredit A S acquired a new stake in shares of Kinetik in the 2nd quarter valued at about $109,000. GAMMA Investing LLC boosted its position in shares of Kinetik by 10.5% in the 2nd quarter. GAMMA Investing LLC now owns 2,882 shares of the company's stock valued at $139,000 after purchasing an additional 273 shares during the period. Finally, Annis Gardner Whiting Capital Advisors LLC purchased a new position in Kinetik during the 1st quarter worth approximately $140,000. 21.11% of the stock is owned by institutional investors and hedge funds.

Kinetik Company Profile

Kinetik Holdings Inc is a midstream energy company that provides infrastructure and services for the gathering, processing, transportation and treatment of natural gas, crude oil and natural gas liquids. Its operations are focused primarily on the Permian Basin, where it connects hydrocarbon production to processing facilities, pipelines and downstream markets.

The company's assets include natural gas gathering and processing systems, crude oil gathering infrastructure, natural gas liquids services and long-haul pipeline interests.

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