Kodiak Gas Services (NYSE:KGS) Announces Earnings Results

Key Points

• Kodiak Gas Services beat quarterly expectations, reporting EPS of $0.70 versus the $0.62 consensus and revenue of $401.79 million versus $387.50 million expected.
• The company raised its quarterly dividend from $0.49 to $0.51 per share, equivalent to a 4.9% annualized yield; its reported payout ratio is 233.33%.
• Analysts maintain a “Moderate Buy” consensus with a $78.09 average price target, though ratings range from Buy to Sell.

Kodiak Gas Services (NYSE:KGS - Get Free Report) announced its earnings results on Monday. The company reported $0.70 EPS for the quarter, beating analysts' consensus estimates of $0.62 by $0.08, FiscalAI reports. The firm had revenue of $401.79 million for the quarter, compared to analysts' expectations of $387.50 million. Kodiak Gas Services had a return on equity of 11.92% and a net margin of 5.77%.

Kodiak Gas Services Price Performance

Shares of KGS stock opened at $41.70 on Monday. The firm has a market cap of $4.23 billion, a P/E ratio of 49.64 and a beta of 1.07. Kodiak Gas Services has a 1-year low of $32.55 and a 1-year high of $77.68. The firm has a fifty day moving average of $52.86 and a two-hundred day moving average of $59.09. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.45 and a quick ratio of 1.15.

Kodiak Gas Services Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Monday, November 16th will be issued a $0.51 dividend. This is an increase from Kodiak Gas Services's previous quarterly dividend of $0.49. This represents a $2.04 dividend on an annualized basis and a yield of 4.9%. The ex-dividend date of this dividend is Monday, November 16th. Kodiak Gas Services's dividend payout ratio (DPR) is currently 233.33%.

Insider Transactions at Kodiak Gas Services

In other Kodiak Gas Services news, insider Pedro R. Buhigas sold 3,663 shares of the firm's stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $58.14, for a total value of $212,966.82. Following the sale, the insider directly owned 32,413 shares in the company, valued at approximately $1,884,491.82. This trade represents a 10.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, COO William Lenamon sold 1,000 shares of the business's stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $53.25, for a total transaction of $53,250.00. Following the transaction, the chief operating officer directly owned 84,294 shares of the company's stock, valued at $4,488,655.50. The trade was a 1.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 23,002 shares of company stock worth $1,325,334. 0.64% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

KGS has been the topic of a number of research analyst reports. UBS Group reissued a "buy" rating on shares of Kodiak Gas Services in a research note on Friday, October 16th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Kodiak Gas Services in a research note on Wednesday, August 26th. Barclays cut their price objective on shares of Kodiak Gas Services from $72.00 to $67.00 and set an "overweight" rating on the stock in a report on Monday, October 5th. Jefferies Financial Group reissued a "buy" rating and issued a $53.00 target price on shares of Kodiak Gas Services in a research report on Friday. Finally, Stifel Nicolaus boosted their target price on shares of Kodiak Gas Services from $90.00 to $92.00 and gave the company a "buy" rating in a report on Tuesday, August 11th. Thirteen analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Kodiak Gas Services currently has a consensus rating of "Moderate Buy" and a consensus price target of $78.09.

About Kodiak Gas Services

Kodiak Gas Services provides contract natural gas compression services to energy companies in the United States. Its equipment helps move natural gas from production sites through gathering and processing systems and into pipelines.

The company supplies, installs, operates and maintains compression equipment, including large-horsepower compressor units. Its services support natural gas production and transportation across major U.S. oil and gas regions.

Based in The Woodlands, Texas, Kodiak became a publicly traded company in 2023.

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