Royal Bank Of Canada Forecasts Strong Price Appreciation for Kinetik (NYSE:KNTK) Stock

Key Points

• Royal Bank of Canada raised Kinetik’s price target to $58 from $57 and maintained an “outperform” rating, implying 4.5% upside from the prior close.
• Analyst sentiment remains broadly positive, with Kinetik holding a “Moderate Buy” consensus rating and an average price target of $55.60; Morgan Stanley has the highest target at $70.
• Kinetik reported strong quarterly results, including $0.64 in EPS versus the $0.19 consensus estimate and revenue of $581.44 million, up 36.3% year over year.

Kinetik (NYSE:KNTK - Get Free Report) had its price target increased by Royal Bank Of Canada from $57.00 to $58.00 in a research note issued on Wednesday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's price target indicates a potential upside of 4.50% from the company's previous close.

Several other equities analysts have also weighed in on KNTK. Barclays raised their price objective on shares of Kinetik from $51.00 to $56.00 and gave the company an "equal weight" rating in a research report on Tuesday. Morgan Stanley reiterated an "overweight" rating and issued a $70.00 target price (up from $64.00) on shares of Kinetik in a report on Tuesday, August 18th. Clear Str lowered shares of Kinetik from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 17th. The Goldman Sachs Group restated a "buy" rating and issued a $58.00 price target on shares of Kinetik in a research report on Wednesday. Finally, Scotiabank reaffirmed an "outperform" rating and issued a $58.00 price target (up from $52.00) on shares of Kinetik in a report on Thursday, September 10th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $55.60.

Kinetik Stock Performance

KNTK opened at $55.50 on Wednesday. The company has a market capitalization of $9.01 billion, a PE ratio of 20.11, a P/E/G ratio of 1.35 and a beta of 0.61. The stock's fifty day moving average is $53.27 and its 200-day moving average is $50.01. Kinetik has a one year low of $31.33 and a one 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, beating the consensus estimate of $0.19 by $0.45. The business had revenue of $581.44 million during the quarter, compared to analysts' expectations of $421.48 million. Kinetik had a negative return on equity of 38.96% and a net margin of 26.19%. The company's quarterly revenue was up 36.3% on a year-over-year basis. During the same quarter last year, the business posted $0.33 earnings per share. On average, equities research analysts forecast that Kinetik will post 1.30 EPS for the current fiscal year.

Insider Activity at Kinetik

In other news, major shareholder Isq Global Fund Ii Gp Llc sold 235,349 shares of Kinetik stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $50.52, for a total value of $11,889,831.48. Following the transaction, the insider directly owned 1,691,370 shares of the company's stock, valued at $85,448,012.40. This trade represents a 12.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Insiders have sold 1,931,632 shares of company stock valued at $102,427,059 in the last ninety days. Company insiders own 3.56% of the company's stock.

Institutional Trading of Kinetik

A number of hedge funds have recently modified their holdings of the business. Tidal Investments LLC grew its holdings in shares of Kinetik by 19.8% during the second quarter. Tidal Investments LLC now owns 29,777 shares of the company's stock valued at $1,439,000 after buying an additional 4,930 shares in the last quarter. Engineers Gate Manager LP purchased a new stake in Kinetik in the 2nd quarter worth about $259,000. Integrated Wealth Concepts LLC purchased a new stake in Kinetik in the 2nd quarter worth about $71,000. NewEdge Advisors LLC boosted its position in Kinetik by 12.9% during the 2nd quarter. NewEdge Advisors LLC now owns 46,187 shares of the company's stock worth $2,233,000 after acquiring an additional 5,269 shares during the period. Finally, IFP Advisors Inc boosted its position in Kinetik by 28.3% during the 2nd quarter. IFP Advisors Inc now owns 3,101 shares of the company's stock worth $150,000 after acquiring an additional 684 shares during the period. Hedge funds and other institutional investors own 21.11% of the company's stock.

Key Headlines Impacting Kinetik

Here are the key news stories impacting Kinetik this week:

• Positive Sentiment: Kinetik announced a quarterly cash dividend payable October 30, supporting the stock’s income appeal and signaling continued shareholder returns. The company did not disclose the dividend amount in the available report. Kinetik quarterly cash dividend announcement
• Positive Sentiment: Barclays raised its Kinetik price target from $51 to $56 while maintaining an “equal weight” rating. The new target is close to the stock’s recent trading level, indicating improved valuation expectations but limited near-term upside. Barclays raises Kinetik price target
• Neutral Sentiment: Kinetik’s latest reported quarter showed strong operating momentum: earnings per share of $0.64 exceeded the $0.19 consensus estimate, revenue rose 36.3% year over year to $581.44 million, and full-year EPS is expected to reach $1.30. However, these results predate the current news flow.
• Negative Sentiment: Major shareholder ISQ Global Fund II GP LLC sold another 38,377 shares at an average price of $54.19, leaving it with only one share. The fund also sold 58,439 shares on October 9 and 119,203 shares on October 8, reducing its position by more than 216,000 shares in the latest disclosed transactions. The concentrated selling may create investor concern about share overhang or insider confidence, even though it does not directly change Kinetik’s operations. ISQ Global Fund II Kinetik stock sales

Kinetik Company Profile

Kinetik Holdings Inc NYSE: KNTK is a midstream energy company that provides infrastructure and logistics services for natural gas, natural gas liquids (NGLs), crude oil and produced water. The company primarily serves producers operating in the Delaware Basin, a major oil and gas-producing region within the Permian Basin of West Texas and southeastern New Mexico.

Kinetik's operations include natural gas gathering, compression, processing and transportation, as well as NGL transportation and pipeline logistics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.