Hsbc Holdings PLC Makes New Investment in Kodiak Gas Services, Inc. $KGS

Key Points

• HSBC Holdings initiated a position in Kodiak Gas Services during the second quarter, purchasing 32,375 shares valued at approximately $2.49 million. Other institutions also increased or initiated holdings, with institutional investors owning 24.95% of the stock.
• Kodiak reported quarterly revenue of $391.12 million, up 21.2% year over year and above estimates, but adjusted earnings of $0.55 per share missed consensus by $0.12. The company declared a quarterly dividend of $0.49 per share, representing a 3.4% yield.
• Analysts remain broadly optimistic, with 10 Buy ratings and two Holds producing a consensus “Moderate Buy” rating and an average price target of $78.89, compared with the stock’s reported $57.64 opening price.

Hsbc Holdings PLC bought a new position in shares of Kodiak Gas Services, Inc. (NYSE:KGS - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 32,375 shares of the company's stock, valued at approximately $2,486,000.

Several other hedge funds have also modified their holdings of the company. Advisors Preferred LLC acquired a new position in shares of Kodiak Gas Services during the 2nd quarter worth about $1,986,000. Crown Advisors Management Inc. purchased a new stake in Kodiak Gas Services in the 2nd quarter valued at $4,508,000. HighTower Advisors LLC increased its stake in shares of Kodiak Gas Services by 40.5% in the 4th quarter. HighTower Advisors LLC now owns 57,699 shares of the company's stock worth $2,158,000 after acquiring an additional 16,619 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in Kodiak Gas Services by 29.2% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 901,406 shares of the company's stock worth $33,713,000 after purchasing an additional 203,809 shares during the period. Finally, Dimensional Fund Advisors LP boosted its holdings in Kodiak Gas Services by 4.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,105,555 shares of the company's stock valued at $181,108,000 after purchasing an additional 135,998 shares during the last quarter. 24.95% of the stock is owned by hedge funds and other institutional investors.

Kodiak Gas Services Price Performance

Shares of NYSE KGS opened at $57.64 on Monday. 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 company has a market cap of $5.83 billion, a price-to-earnings ratio of 68.62, a price-to-earnings-growth ratio of 0.84 and a beta of 0.98. The stock's 50-day moving average is $64.28 and its two-hundred day moving average is $63.04. Kodiak Gas Services, Inc. has a 1-year low of $32.55 and a 1-year high of $77.68.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.67 by ($0.12). Kodiak Gas Services had a net margin of 5.77% and a return on equity of 11.92%. The company had revenue of $391.12 million during the quarter, compared to analysts' expectations of $386.30 million. During the same quarter in the previous year, the business posted $0.43 EPS. The business's quarterly revenue was up 21.2% compared to the same quarter last year. Analysts forecast that Kodiak Gas Services, Inc. will post 2.44 EPS for the current fiscal year.

Kodiak Gas Services Dividend Announcement

The company also recently declared 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 was Monday, August 17th. Kodiak Gas Services's payout ratio is 233.33%.

Analyst Upgrades and Downgrades

KGS has been the topic of a number of research analyst reports. The Goldman Sachs Group boosted their price target on shares of Kodiak Gas Services from $69.00 to $88.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Piper Sandler initiated coverage on shares of Kodiak Gas Services in a research note on Tuesday, July 28th. They issued an "overweight" rating and a $78.00 price objective for the company. Zacks Research upgraded shares of Kodiak Gas Services from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 6th. Citigroup upped their target price on shares of Kodiak Gas Services from $63.00 to $86.00 and gave the stock a "buy" rating in a research note on Wednesday, May 13th. Finally, Royal Bank Of Canada increased their target price on shares of Kodiak Gas Services from $84.00 to $88.00 and gave the stock an "outperform" rating in a report on Thursday, August 13th. Ten research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, Kodiak Gas Services has a consensus rating of "Moderate Buy" and an average target price of $78.89.

Insider Activity at Kodiak Gas Services

In other news, insider Pedro R. Buhigas sold 4,625 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $67.78, for a total value of $313,482.50. Following the transaction, the insider owned 38,454 shares in the company, valued at approximately $2,606,412.12. This represents a 10.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Ewan William Hamilton sold 2,729 shares of Kodiak Gas Services stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $68.62, for a total transaction of $187,263.98. Following the sale, the chief accounting officer owned 31,617 shares in the company, valued at $2,169,558.54. This represents a 7.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 19,531 shares of company stock worth $1,296,158 over the last ninety days. 0.64% of the stock is currently owned by insiders.

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. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings.

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