Kodiak Gas Services, Inc. $KGS Shares Sold by Encompass Capital Advisors LLC

Key Points

• Encompass Capital Advisors LLC reduced its stake in Kodiak Gas Services by 32.7%, selling 529,258 shares and holding approximately 1.6% of its portfolio in the company.
• Recent analyst reports have increased price targets for Kodiak Gas Services, with Mizuho raising its target from $45.00 to $47.00 and JPMorgan setting a new target of $43.00.
• Kodiak Gas Services announced a quarterly dividend of $0.45 per share and approved a share buyback plan allowing the repurchase of $50 million in shares, indicative of confidence in the stock's valuation.

Encompass Capital Advisors LLC reduced its stake in shares of Kodiak Gas Services, Inc. (NYSE:KGS - Free Report) by 32.7% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,090,200 shares of the company's stock after selling 529,258 shares during the quarter. Kodiak Gas Services comprises approximately 1.6% of Encompass Capital Advisors LLC's holdings, making the stock its 29th largest position. Encompass Capital Advisors LLC owned about 1.23% of Kodiak Gas Services worth $40,664,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in KGS. Zimmer Partners LP grew its holdings in Kodiak Gas Services by 88.1% during the 4th quarter. Zimmer Partners LP now owns 3,347,700 shares of the company's stock valued at $136,687,000 after buying an additional 1,567,849 shares in the last quarter. T. Rowe Price Investment Management Inc. bought a new position in shares of Kodiak Gas Services during the 1st quarter valued at approximately $40,648,000. Merewether Investment Management LP boosted its position in shares of Kodiak Gas Services by 259.4% during the 4th quarter. Merewether Investment Management LP now owns 934,499 shares of the company's stock valued at $38,156,000 after acquiring an additional 674,499 shares during the last quarter. Teacher Retirement System of Texas bought a new position in shares of Kodiak Gas Services during the 1st quarter valued at approximately $19,784,000. Finally, Kayne Anderson Capital Advisors LP boosted its position in shares of Kodiak Gas Services by 1,069.1% during the 1st quarter. Kayne Anderson Capital Advisors LP now owns 509,073 shares of the company's stock valued at $18,988,000 after acquiring an additional 465,528 shares during the last quarter. 24.95% of the stock is owned by hedge funds and other institutional investors.

Kodiak Gas Services Stock Down 4.3%

Shares of Kodiak Gas Services stock traded down $1.52 during trading on Monday, hitting $33.81. 7,199,174 shares of the stock traded hands, compared to its average volume of 1,255,228. The firm has a market cap of $2.97 billion, a P/E ratio of 37.56 and a beta of 1.34. The company has a current ratio of 1.10, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89. Kodiak Gas Services, Inc. has a 52-week low of $25.21 and a 52-week high of $50.43. The stock's fifty day simple moving average is $33.52 and its 200 day simple moving average is $34.94.

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

Kodiak Gas Services Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, August 4th were issued a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 5.3%. The ex-dividend date of this dividend was Monday, August 4th. Kodiak Gas Services's dividend payout ratio (DPR) is currently 200.00%.

Kodiak Gas Services announced that its Board of Directors has authorized a stock repurchase program on Monday, August 11th that allows the company to repurchase $50.00 million in shares. This repurchase authorization allows the company to reacquire up to 1.8% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on KGS shares. Barclays increased their target price 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. JPMorgan Chase & Co. restated a "buy" rating and issued a $43.00 price target (up from $42.00) on shares of Kodiak Gas Services in a research report on Monday, June 23rd. Royal Bank Of Canada raised their price target on Kodiak Gas Services from $42.00 to $43.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 13th. Finally, Mizuho raised their price target on Kodiak Gas Services from $45.00 to $47.00 and gave the stock an "outperform" rating in a research report on Friday, August 29th. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $41.30.

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.