Augustine Asset Management Inc. Reduces Stock Position in Kodiak Gas Services, Inc. $KGS

Key Points

• Augustine Asset Management Inc. reduced its stake in Kodiak Gas Services, Inc. by 1.4% in Q2, owning 609,333 shares valued at approximately $20.88 million.
• Kodiak Gas Services reported a quarterly earnings per share of $0.49, exceeding the consensus estimate of $0.46, but fell short of revenue expectations with $322.84 million.
• The company initiated a $50 million stock repurchase program, indicating management's belief that its stock is undervalued.

Augustine Asset Management Inc. decreased its position in shares of Kodiak Gas Services, Inc. (NYSE:KGS - Free Report) by 1.4% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 609,333 shares of the company's stock after selling 8,600 shares during the quarter. Kodiak Gas Services makes up 5.6% of Augustine Asset Management Inc.'s holdings, making the stock its 5th largest holding. Augustine Asset Management Inc. owned about 0.69% of Kodiak Gas Services worth $20,882,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in KGS. T. Rowe Price Investment Management Inc. bought a new position in shares of Kodiak Gas Services during the 1st quarter worth $40,648,000. Goldman Sachs Group Inc. boosted its position in Kodiak Gas Services by 58.3% during the first quarter. Goldman Sachs Group Inc. now owns 1,983,360 shares of the company's stock valued at $73,979,000 after purchasing an additional 730,180 shares in the last quarter. Think Investments LP bought a new stake in Kodiak Gas Services during the first quarter valued at about $23,678,000. Teacher Retirement System of Texas bought a new stake in Kodiak Gas Services during the first quarter valued at about $19,784,000. Finally, Zimmer Partners LP boosted its position in Kodiak Gas Services by 14.2% during the first quarter. Zimmer Partners LP now owns 3,824,063 shares of the company's stock valued at $142,638,000 after purchasing an additional 476,363 shares in the last quarter. Institutional investors own 24.95% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on KGS. Zacks Research downgraded Kodiak Gas Services from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 10th. Barclays raised their price objective on Kodiak Gas Services from $36.00 to $37.00 and gave the company an "equal weight" rating in a research report on Thursday, August 14th. Mizuho raised their price objective on Kodiak Gas Services from $45.00 to $47.00 and gave the company an "outperform" rating in a research report on Friday, August 29th. JPMorgan Chase & Co. reaffirmed 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. Finally, Royal Bank Of Canada raised their price objective on Kodiak Gas Services from $42.00 to $43.00 and gave the company an "outperform" rating in a research report on Wednesday, August 13th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $43.50.

Kodiak Gas Services Price Performance

Shares of NYSE KGS opened at $37.38 on Friday. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.78 and a current ratio of 1.10. The company has a market cap of $3.24 billion, a PE ratio of 41.53 and a beta of 1.34. The business has a 50-day simple moving average of $33.93 and a two-hundred day simple moving average of $34.45. Kodiak Gas Services, Inc. has a fifty-two week low of $28.56 and a fifty-two week high of $50.43.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $0.49 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.03. The business had revenue of $322.84 million during the quarter, compared to the consensus estimate of $335.10 million. Kodiak Gas Services had a return on equity of 10.35% and a net margin of 6.48%.The company's quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter last year, the company earned $0.06 earnings per share. As a group, equities analysts expect that Kodiak Gas Services, Inc. will post 1.12 EPS for the current fiscal year.

Kodiak Gas Services declared that its Board of Directors has initiated a stock repurchase program on Monday, August 11th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the company to repurchase up to 1.8% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

Kodiak Gas Services Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 14th. Stockholders of record on Monday, August 4th were paid a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 4.8%. The ex-dividend date was Monday, August 4th. Kodiak Gas Services's dividend payout ratio (DPR) is presently 200.00%.

Kodiak Gas Services 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.

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