Kodiak Gas Services (NYSE:KGS) Stock Price Target Cut by Wells Fargo & Company

Key Points

• Wells Fargo cut its Kodiak Gas Services price target from $93 to $66 but maintained an “overweight” rating; the revised target implies about 50% upside from the stock’s Friday price of $44.05.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $73.67, with 14 Buy, one Hold, and one Sell rating.
• Kodiak beat quarterly expectations, reporting EPS of $0.70 versus $0.62 forecast and revenue of $401.79 million versus $387.50 million expected; revenue rose 24.5% year over year.

Kodiak Gas Services (NYSE:KGS - Get Free Report) had its price objective dropped by equities researchers at Wells Fargo & Company from $93.00 to $66.00 in a report issued on Friday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's price target would indicate a potential upside of 49.85% from the stock's current price.

Other analysts also recently issued reports about the stock. Raymond James Financial reaffirmed an "outperform" rating and set a $70.00 price objective on shares of Kodiak Gas Services in a report on Tuesday. Weiss Ratings reissued a "hold (c+)" rating on shares of Kodiak Gas Services in a research note on Wednesday, August 26th. Barclays lowered their price target on Kodiak Gas Services from $72.00 to $67.00 and set an "overweight" rating on the stock in a research report on Monday, October 5th. Jefferies Financial Group dropped their price target on Kodiak Gas Services from $53.00 to $52.00 and set a "buy" rating for the company in a research note on Tuesday. Finally, UBS Group reiterated a "buy" rating on shares of Kodiak Gas Services in a report on Friday, October 16th. Fourteen investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $73.67.

Kodiak Gas Services Price Performance

KGS traded down $0.35 on Friday, reaching $44.05. The company had a trading volume of 222,705 shares, compared to its average volume of 1,761,341. Kodiak Gas Services has a 52-week low of $32.55 and a 52-week high of $77.68. The company has a market cap of $4.47 billion, a price-to-earnings ratio of 25.72, a P/E/G ratio of 0.72 and a beta of 1.07. The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.15 and a current ratio of 1.31. The business has a 50 day simple moving average of $51.61 and a 200 day simple moving average of $59.16.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last released its quarterly earnings results on Monday, November 9th. The company reported $0.70 EPS for the quarter, topping analysts' consensus estimates of $0.62 by $0.08. The business had revenue of $401.79 million during the quarter, compared to analysts' expectations of $387.50 million. Kodiak Gas Services had a net margin of 11.28% and a return on equity of 12.62%. The business's quarterly revenue was up 24.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.36 EPS. As a group, sell-side analysts anticipate that Kodiak Gas Services will post 2.46 EPS for the current year.

Insider Buying and Selling

In other news, COO William Lenamon sold 1,000 shares of the business's stock in a transaction dated Wednesday, November 11th. The stock was sold at an average price of $44.20, for a total value of $44,200.00. Following the completion of the sale, the chief operating officer owned 83,294 shares of the company's stock, valued at approximately $3,681,594.80. The trade was a 1.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Pedro Buhigas sold 3,663 shares of the business's stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $58.14, for a total value of $212,966.82. Following the completion of the sale, the insider directly owned 32,413 shares of the company's stock, valued at approximately $1,884,491.82. This trade represents a 10.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 24,002 shares of company stock worth $1,369,534 in the last ninety days. Corporate insiders own 0.64% of the company's stock.

Institutional Trading of Kodiak Gas Services

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Public Employees Retirement System of Ohio purchased a new stake in shares of Kodiak Gas Services during the second quarter valued at approximately $29,000. Core Capital Management & Research inc. purchased a new position in shares of Kodiak Gas Services in the second quarter worth $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, PNC Financial Services Group Inc. raised its holdings in Kodiak Gas Services by 29.5% during the 1st quarter. PNC Financial Services Group Inc. now owns 1,545 shares of the company's stock valued at $90,000 after buying an additional 352 shares during the last quarter. Institutional investors own 24.95% of the company's stock.

About Kodiak Gas Services

Kodiak Gas Services provides contract natural gas compression services to energy companies in the United States. Its equipment helps move natural gas from production sites through gathering and processing systems and into pipelines. The company supplies, installs, operates and maintains compression equipment, including large-horsepower compressor units. Its services support natural gas production and transportation across major U.S. oil and gas regions. Based in The Woodlands, Texas, Kodiak became a publicly traded company in 2023.

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