Kodiak Gas Services, Inc. (NYSE:KGS) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Kodiak Gas Services, with 10 buy ratings and two holds among 12 analysts. The average 12-month price target is $78.89, above the reported share price of $57.51.
• In its latest quarter, Kodiak reported 21.2% year-over-year revenue growth to $391.1 million, exceeding estimates, but EPS of $0.55 missed consensus by $0.12.
• The company paid a quarterly dividend of $0.49 per share, representing a 3.4% annualized yield; however, its payout ratio is high at 233.33%, and insiders have sold shares in recent months.

Shares of Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) have received an average recommendation of "Moderate Buy" from the twelve brokerages that are currently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $78.8889.

KGS has been the subject of several recent analyst reports. Royal Bank Of Canada raised their price target on Kodiak Gas Services from $84.00 to $88.00 and gave the stock an "outperform" rating in a report on Thursday, August 13th. Piper Sandler started coverage on Kodiak Gas Services in a report on Tuesday, July 28th. They set an "overweight" rating and a $78.00 target price for the company. Jefferies Financial Group lowered their price target on shares of Kodiak Gas Services from $79.00 to $69.00 and set a "buy" rating on the stock in a report on Monday, August 10th. Barclays lowered their price objective on Kodiak Gas Services from $76.00 to $72.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 8th. Finally, Wells Fargo & Company initiated coverage on shares of Kodiak Gas Services in a research note on Wednesday, May 27th. They set an "overweight" rating and a $93.00 target price on the stock.

Kodiak Gas Services Price Performance

Shares of KGS stock opened at $57.51 on Wednesday. Kodiak Gas Services has a 1-year low of $32.55 and a 1-year high of $77.68. The company has a market cap of $5.81 billion, a P/E ratio of 68.46, a PEG ratio of 0.83 and a beta of 0.96. 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's 50-day moving average is $61.91 and its 200 day moving average is $63.92.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last issued its quarterly earnings data 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). Kodiak Gas Services had a return on equity of 11.92% and a net margin of 5.77%.The firm had revenue of $391.12 million during the quarter, compared to analysts' expectations of $386.30 million. During the same period in the previous year, the firm earned $0.43 EPS. The firm's quarterly revenue was up 21.2% on a year-over-year basis. Research analysts predict that Kodiak Gas Services will post 2.44 earnings per share for the current fiscal year.

Kodiak Gas Services Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Monday, August 17th were issued a dividend of $0.49 per share. This represents a $1.96 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend was Monday, August 17th. Kodiak Gas Services's dividend payout ratio (DPR) is presently 233.33%.

Insider Buying and Selling

In related news, CEO Robert McKee sold 5,999 shares of Kodiak Gas Services stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $59.31, for a total value of $355,800.69. Following the sale, the chief executive officer directly owned 292,590 shares in the company, valued at approximately $17,353,512.90. The trade was a 2.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, COO William Lenamon sold 1,000 shares of Kodiak Gas Services stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $63.21, for a total value of $63,210.00. Following the completion of the sale, the chief operating officer directly owned 85,294 shares in the company, valued at $5,391,433.74. This represents a 1.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 18,176 shares of company stock worth $1,146,633. Insiders own 0.64% of the company's stock.

Hedge Funds Weigh In On Kodiak Gas Services

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KGS. Public Employees Retirement System of Ohio acquired a new position in shares of Kodiak Gas Services during the 2nd quarter valued at about $29,000. Core Capital Management & Research inc. purchased a new position in shares of Kodiak Gas Services during the second quarter worth $64,000. Harbor Investment Advisory LLC acquired a new position in Kodiak Gas Services during the 2nd quarter worth about $76,000. Allworth Financial LP acquired a new position in Kodiak Gas Services during the 2nd quarter worth about $80,000. Finally, PNC Financial Services Group Inc. boosted 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 acquiring an additional 352 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 natural gas compression services to producers, processors, gatherers and other midstream companies in the United States. Its compression equipment increases and maintains the pressure of natural gas as it moves from production sites through gathering systems, processing facilities and pipelines.

The company primarily operates under long-term contracts and offers compression-as-a-service solutions. Its services include the design, installation, operation, maintenance, repair and overhaul of natural gas compression equipment.

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