Kinetik (NYSE:KNTK) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Kinetik from “strong buy” to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $53.27.
• Kinetik reported a strong quarter, posting $0.64 earnings per share versus the $0.19 consensus estimate and $581.44 million in revenue, up 36.3% year over year.
• The stock opened at $55.05, near its 52-week high of $56.10. Insiders have sold roughly $52.5 million worth of shares over the past three months, while institutional investors own 21.11% of the company.

Kinetik (NYSE:KNTK - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

Several other research firms have also commented on KNTK. Barclays set a $51.00 price objective on shares of Kinetik and gave the stock an "equal weight" rating in a research note on Thursday, August 6th. Wall Street Zen raised Kinetik from a "strong sell" rating to a "hold" rating in a report on Saturday, August 8th. Jefferies Financial Group reissued a "hold" rating and issued a $51.00 price objective on shares of Kinetik in a report on Friday, May 8th. US Capital Advisors raised Kinetik from a "moderate buy" rating to a "strong-buy" rating in a report on Friday, May 29th. Finally, Tudor Pickering assumed coverage on shares of Kinetik in a research note on Monday, July 20th. They issued a "buy" rating and a $57.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $53.27.

Kinetik Stock Performance

Kinetik stock opened at $55.05 on Tuesday. Kinetik has a fifty-two week low of $31.33 and a fifty-two week high of $56.10. The stock's 50 day simple moving average is $50.23 and its two-hundred day simple moving average is $47.86. The stock has a market cap of $8.94 billion, a price-to-earnings ratio of 19.95, a PEG ratio of 1.34 and a beta of 0.56.

Kinetik (NYSE:KNTK - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.64 EPS for the quarter, beating analysts' consensus estimates of $0.19 by $0.45. Kinetik had a negative return on equity of 38.96% and a net margin of 26.19%.The company had revenue of $581.44 million during the quarter, compared to analysts' expectations of $421.48 million. During the same quarter last year, the business posted $0.33 EPS. The firm's revenue for the quarter was up 36.3% compared to the same quarter last year. On average, analysts predict that Kinetik will post 1.3 earnings per share for the current year.

Insider Buying and Selling

In related news, major shareholder Isq Global Fund Ii Gp Llc sold 6,963 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $55.17, for a total transaction of $384,148.71. Following the completion of the transaction, the insider owned 918,824 shares in the company, valued at $50,691,520.08. The trade was a 0.75% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Deborah L. Byers sold 2,739 shares of the company's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $51.51, for a total value of $141,085.89. Following the completion of the transaction, the director directly owned 24,389 shares in the company, valued at $1,256,277.39. This trade represents a 10.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,012,809 shares of company stock valued at $52,548,833 over the last three months. 3.56% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Kinetik

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. CWM LLC increased its position in shares of Kinetik by 89.8% during the fourth quarter. CWM LLC now owns 744 shares of the company's stock worth $27,000 after acquiring an additional 352 shares during the period. Kestra Advisory Services LLC purchased a new stake in shares of Kinetik in the fourth quarter valued at approximately $33,000. Los Angeles Capital Management LLC bought a new position in Kinetik in the fourth quarter worth approximately $40,000. Huntington National Bank grew its stake in Kinetik by 139.1% in the fourth quarter. Huntington National Bank now owns 1,222 shares of the company's stock worth $44,000 after purchasing an additional 711 shares in the last quarter. Finally, SBI Okasan Asset Management Co.Ltd. purchased a new position in Kinetik during the 4th quarter worth $47,000. Institutional investors own 21.11% of the company's stock.

About Kinetik

Kinetik NYSE: KNTK is a publicly listed midstream energy company focused on the development, operation and management of natural gas infrastructure across the United States. The company's core business activities include the gathering, compression, processing, storage and transportation of natural gas, serving producers, utilities and industrial consumers. By integrating a suite of midstream services under a single platform, Kinetik aims to provide efficient, cost-effective and reliable solutions across the natural gas value chain.

The company was established in 2021 when assets were acquired from Talen Energy by a subsidiary of ArcLight Capital Partners, forming a comprehensive portfolio of pipelines, compression facilities and underground storage assets.

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