Morgan Stanley Issues Pessimistic Forecast for Kinetik (NYSE:KNTK) Stock Price

Key Points

• Morgan Stanley cut its Kinetik price target from $67 to $64 but maintained an “overweight” rating, implying 22.3% upside from the prior close.
• Kinetik reported quarterly EPS of $0.26, missing the $0.40 consensus estimate, while revenue rose 22.7% year over year to $569.4 million.
• Analyst sentiment remains broadly positive: MarketBeat’s consensus is “Moderate Buy,” with an average target of $56.36. Shares rose 4% on Tuesday to $52.32.

Kinetik (NYSE:KNTK - Get Free Report) had its target price cut by analysts at Morgan Stanley from $67.00 to $64.00 in a research report issued on Tuesday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Morgan Stanley's target price points to a potential upside of 22.32% from the stock's previous close.

Other equities research analysts have also issued research reports about the stock. Truist Financial raised their price target on shares of Kinetik from $53.00 to $59.00 and gave the stock a "buy" rating in a research note on Wednesday, August 12th. Raymond James Financial reissued an "outperform" rating and set a $57.00 price objective on shares of Kinetik in a report on Tuesday, October 20th. Wells Fargo & Company raised their target price on Kinetik from $54.00 to $56.00 and gave the stock an "overweight" rating in a research report on Monday. Jefferies Financial Group reissued a "hold" rating and issued a $54.00 target price (down from $56.00) on shares of Kinetik in a research report on Monday, October 19th. Finally, JPMorgan Chase & Co. boosted their target price on Kinetik from $54.00 to $57.00 and gave the company an "overweight" rating in a research note on Tuesday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $56.36.

Kinetik Stock Up 4.0%

KNTK traded up $1.99 during trading on Tuesday, hitting $52.32. 301,780 shares of the company's stock were exchanged, compared to its average volume of 1,179,845. Kinetik has a fifty-two week low of $31.33 and a fifty-two week high of $58.90. The stock has a market cap of $8.50 billion, a P/E ratio of 17.50, a PEG ratio of 1.14 and a beta of 0.67. The business's 50 day moving average is $53.76 and its two-hundred day moving average is $49.02.

Kinetik (NYSE:KNTK - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.14). The company had revenue of $569.40 million for the quarter. Kinetik had a negative return on equity of 44.80% and a net margin of 25.65%. The company's quarterly revenue was up 22.7% compared to the same quarter last year. During the same period in the prior year, the business earned $0.03 EPS. On average, sell-side analysts forecast that Kinetik will post 1.44 earnings per share for the current year.

Insider Buying and Selling

In related news, major shareholder Isq Global Fund Ii Gp Llc sold 2,000,000 shares of the company's stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $54.77, for a total value of $109,540,000.00. Following the completion of the transaction, the insider directly owned 1 shares in the company, valued at approximately $54.77. The trade was a 100.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last three months, insiders have sold 3,480,455 shares of company stock valued at $189,142,576. 3.56% of the stock is owned by insiders.

Hedge Funds Weigh In On Kinetik

Large investors have recently bought and sold shares of the stock. Teachers Retirement System of The State of Kentucky boosted its holdings in Kinetik by 31.6% in the third quarter. Teachers Retirement System of The State of Kentucky now owns 12,500 shares of the company's stock valued at $627,000 after acquiring an additional 3,000 shares in the last quarter. Hantz Financial Services Inc. lifted its position in shares of Kinetik by 12.9% in the 3rd quarter. Hantz Financial Services Inc. now owns 3,205 shares of the company's stock worth $161,000 after purchasing an additional 366 shares during the period. Russell Investments Group Ltd. boosted its stake in shares of Kinetik by 71.0% during the 3rd quarter. Russell Investments Group Ltd. now owns 123,025 shares of the company's stock valued at $6,176,000 after purchasing an additional 51,089 shares in the last quarter. Fifth Third Bancorp raised its stake in Kinetik by 19.6% in the third quarter. Fifth Third Bancorp now owns 18,391 shares of the company's stock worth $923,000 after buying an additional 3,020 shares in the last quarter. Finally, Maryland State Retirement & Pension System lifted its holdings in Kinetik by 84.0% in the third quarter. Maryland State Retirement & Pension System now owns 14,088 shares of the company's stock worth $707,000 after buying an additional 6,431 shares during the period. 21.11% of the stock is owned by hedge funds and other institutional investors.

About Kinetik

Kinetik Holdings provides midstream services to oil and natural gas producers operating in the Permian Basin, with a focus on the Delaware Basin in West Texas and southeastern New Mexico. Its services connect producing wells to downstream markets and other energy infrastructure.

The company's operations include natural gas gathering, compression, processing and transportation, as well as crude oil gathering and produced-water gathering, recycling and disposal. Kinetik also provides related infrastructure and commercial services to its producer customers.

Kinetik was formed in 2022 through the merger of EagleClaw Midstream and Altus Midstream.

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