Barclays Issues Positive Forecast for Kodiak Gas Services (NYSE:KGS) Stock Price

Key Points

• Barclays has raised its price objective for Kodiak Gas Services from $36.00 to $37.00, indicating a potential upside of 5.88% from the current stock price, while maintaining an "equal weight" rating.
• The average consensus target price for Kodiak Gas Services is now $40.55, with a mix of ratings including ten buy ratings and one hold rating from analysts.
• Kodiak Gas Services recently announced a $50 million share buyback plan, suggesting that the company believes its stock is currently undervalued.

Kodiak Gas Services (NYSE:KGS - Free Report) had its price objective lifted by Barclays from $36.00 to $37.00 in a research note released on Thursday morning,Benzinga reports. The brokerage currently has an equal weight rating on the stock.

KGS has been the topic of a number of other research reports. Mizuho cut their price objective on shares of Kodiak Gas Services from $46.00 to $45.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 20th. Royal Bank Of Canada set a $43.00 price objective on shares of Kodiak Gas Services and gave the stock an "outperform" rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. reissued a "buy" rating and set a $43.00 price objective (up previously from $42.00) on shares of Kodiak Gas Services in a research report on Monday, June 23rd. One analyst has rated the stock with a hold rating and nine have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, Kodiak Gas Services presently has a consensus rating of "Moderate Buy" and an average target price of $41.10.

Kodiak Gas Services Trading Down 0.9%

KGS traded down $0.33 during trading on Thursday, reaching $34.79. 1,274,740 shares of the stock traded hands, compared to its average volume of 2,045,219. The company has a quick ratio of 0.87, a current ratio of 1.10 and a debt-to-equity ratio of 1.89. The stock has a market capitalization of $3.05 billion, a PE ratio of 38.66 and a beta of 1.33. The stock's 50-day moving average is $33.09 and its 200 day moving average is $36.11. Kodiak Gas Services has a 12 month low of $25.21 and a 12 month high of $50.43.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $0.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.46 by $0.03. The company had revenue of $322.84 million for the quarter, compared to analysts' expectations of $335.10 million. Kodiak Gas Services had a net margin of 6.48% and a return on equity of 10.35%. The business's revenue was up 4.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.06 EPS. Equities analysts anticipate that Kodiak Gas Services will post 1.12 earnings per share for the current year.

Kodiak Gas Services announced that its board has approved a share repurchase program on Monday, August 11th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 1.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's management believes its stock is undervalued.

Kodiak Gas Services Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, August 14th. Investors of record on Monday, August 4th were issued a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 5.2%. The ex-dividend date of this dividend was Monday, August 4th. Kodiak Gas Services's payout ratio is 200.00%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of KGS. Invesco Ltd. lifted its holdings in shares of Kodiak Gas Services by 59.9% during the 2nd quarter. Invesco Ltd. now owns 4,869,346 shares of the company's stock worth $166,872,000 after acquiring an additional 1,824,407 shares during the last quarter. Encompass Capital Advisors LLC bought a new stake in Kodiak Gas Services in the fourth quarter worth $66,122,000. Zimmer Partners LP lifted its stake in Kodiak Gas Services by 88.1% in the fourth quarter. Zimmer Partners LP now owns 3,347,700 shares of the company's stock worth $136,687,000 after purchasing an additional 1,567,849 shares during the last quarter. T. Rowe Price Investment Management Inc. bought a new stake in Kodiak Gas Services in the first quarter worth $40,648,000. Finally, Goldman Sachs Group Inc. lifted its stake in Kodiak Gas Services by 58.3% in the first quarter. Goldman Sachs Group Inc. now owns 1,983,360 shares of the company's stock worth $73,979,000 after purchasing an additional 730,180 shares during the last quarter. 24.95% of the stock is currently owned by hedge funds and other institutional investors.

Kodiak Gas Services Company Profile

Kodiak Gas Services, Inc operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil.