Kodiak Gas Services (NYSE:KGS) Stock Rating Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Kodiak Gas Services from “hold” to “strong sell,” though the broader analyst consensus remains “Moderate Buy,” with an average price target of $79.18.
• Kodiak’s shares opened at $48.10, well below their 52-week high of $77.68. The company’s latest quarterly EPS of $0.55 missed estimates, despite revenue rising 21.2% year over year to $391.12 million.
• Company insiders sold 20,336 shares worth approximately $1.2 million over the past 90 days, while institutional investors and hedge funds own nearly 25% of the stock.

Kodiak Gas Services (NYSE:KGS - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday, Zacks reports.

Other equities analysts have also recently issued reports about the stock. UBS Group reaffirmed a "buy" rating on shares of Kodiak Gas Services in a research note on Friday, October 16th. Jefferies Financial Group cut their price objective on shares of Kodiak Gas Services from $69.00 to $65.00 and set a "buy" rating on the stock in a research report on Thursday, October 8th. Weiss Ratings reissued a "hold (c+)" rating on shares of Kodiak Gas Services in a research report on Wednesday, August 26th. Royal Bank Of Canada reduced their target price on shares of Kodiak Gas Services from $88.00 to $82.00 and set an "outperform" rating for the company in a report on Friday, October 16th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Kodiak Gas Services from $79.00 to $78.00 and set an "overweight" rating for the company in a research report on Thursday, October 8th. Thirteen analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Kodiak Gas Services has a consensus rating of "Moderate Buy" and an average price target of $79.18.

Kodiak Gas Services Stock Up 1.4%

KGS stock opened at $48.10 on Tuesday. 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 stock has a market capitalization of $4.88 billion, a P/E ratio of 57.26 and a beta of 1.01. Kodiak Gas Services has a fifty-two week low of $32.55 and a fifty-two week high of $77.68. The business has a 50-day moving average of $55.12 and a 200-day moving average of $58.84.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.67 by ($0.12). The firm had revenue of $391.12 million during the quarter, compared to analyst estimates of $386.30 million. Kodiak Gas Services had a net margin of 5.77% and a return on equity of 11.92%. The firm's quarterly revenue was up 21.2% compared to the same quarter last year. During the same period in the prior year, the business posted $0.43 EPS. On average, sell-side analysts anticipate that Kodiak Gas Services will post 2.46 earnings per share for the current fiscal year.

Insider Activity at Kodiak Gas Services

In other Kodiak Gas Services news, COO William Lenamon sold 1,000 shares of the firm's stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $53.25, for a total value of $53,250.00. Following the completion of the transaction, the chief operating officer directly owned 84,294 shares in the company, valued at $4,488,655.50. This trade represents a 1.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Robert McKee sold 6,008 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $62.39, for a total value of $374,839.12. Following the completion of the transaction, the chief executive officer owned 298,589 shares of the company's stock, valued at approximately $18,628,967.71. This represents a 1.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 20,336 shares of company stock valued at $1,203,897. Insiders own 0.64% of the company's stock.

Institutional Investors Weigh In On Kodiak Gas Services

Several large investors have recently made changes to their positions in the stock. Argentarii LLC boosted its holdings in shares of Kodiak Gas Services by 5.6% during the 3rd quarter. Argentarii LLC now owns 24,934 shares of the company's stock worth $1,321,000 after buying an additional 1,314 shares during the period. Hanseatic Management Services Inc. grew its position in shares of Kodiak Gas Services by 2.0% in the third quarter. Hanseatic Management Services Inc. now owns 15,633 shares of the company's stock valued at $828,000 after purchasing an additional 310 shares during the last quarter. Oppenheimer & Co. Inc. bought a new position in shares of Kodiak Gas Services during the third quarter worth approximately $681,000. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT increased its position in Kodiak Gas Services by 142.7% during the 3rd quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 728,000 shares of the company's stock worth $38,562,000 after buying an additional 428,000 shares during the period. Finally, Sterling Capital Management LLC increased its position in Kodiak Gas Services by 854.6% during the third quarter. Sterling Capital Management LLC now owns 3,389 shares of the company's stock worth $180,000 after acquiring an additional 3,034 shares during the period. Institutional investors and hedge funds own 24.95% of the company's stock.

Kodiak Gas Services Company Profile

Kodiak Gas Services, Inc NYSE: KGS provides contract compression and related infrastructure services to the North American oil and gas industry. The company helps producers and midstream operators move natural gas through gathering systems, processing facilities and pipelines by supplying compression equipment and operating it under long-term service arrangements.

Its services include the design, installation, operation and maintenance of natural gas compression systems. Kodiak owns and manages a fleet of compression units that can be deployed across a range of applications, including natural gas gathering and processing.

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