Hsbc Holdings PLC Takes Position in Kodiak Gas Services, Inc. $KGS

Key Points

• HSBC Holdings PLC disclosed a new fourth-quarter stake in Kodiak Gas Services, buying 21,131 shares valued at about $788,000. The filing also shows broader institutional interest, with hedge funds and other investors holding roughly 24.95% of the stock.
• Kodiak Gas Services reported strong quarterly earnings, posting EPS of $0.59 versus the expected $0.54 and revenue of $345.76 million, beating estimates. Revenue rose 4.9% year over year, and analysts now expect full-year EPS of 2.27.
• The stock has attracted mixed signals from insiders and analysts: executives recently sold shares, while brokerages remain mostly positive with nine Buy ratings and an average target price of $79.50. KGS also paid a $0.49 quarterly dividend, annualizing to a 2.8% yield.

Hsbc Holdings PLC acquired a new stake in Kodiak Gas Services, Inc. (NYSE:KGS - Free Report) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 21,131 shares of the company's stock, valued at approximately $788,000.

Several other hedge funds also recently added to or reduced their stakes in KGS. Royal Bank of Canada increased its stake in Kodiak Gas Services by 67.5% during the first quarter. Royal Bank of Canada now owns 10,235 shares of the company's stock worth $382,000 after acquiring an additional 4,126 shares during the last quarter. AQR Capital Management LLC lifted its stake in shares of Kodiak Gas Services by 64.9% in the 1st quarter. AQR Capital Management LLC now owns 21,261 shares of the company's stock valued at $793,000 after purchasing an additional 8,369 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Kodiak Gas Services by 44.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,814 shares of the company's stock valued at $1,000,000 after purchasing an additional 8,297 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Kodiak Gas Services by 58.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,983,360 shares of the company's stock worth $73,979,000 after purchasing an additional 730,180 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Kodiak Gas Services by 102.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 95,108 shares of the company's stock worth $3,548,000 after purchasing an additional 48,122 shares during the period. 24.95% of the stock is currently owned by hedge funds and other institutional investors.

Kodiak Gas Services Stock Up 3.8%

KGS stock opened at $69.08 on Wednesday. The company's 50 day moving average price is $70.34 and its 200 day moving average price is $57.97. The company has a debt-to-equity ratio of 2.38, a quick ratio of 0.99 and a current ratio of 1.28. Kodiak Gas Services, Inc. has a fifty-two week low of $30.06 and a fifty-two week high of $77.68. The firm has a market capitalization of $6.13 billion, a price-to-earnings ratio of 93.36, a PEG ratio of 1.04 and a beta of 0.89.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.54 by $0.05. Kodiak Gas Services had a net margin of 5.13% and a return on equity of 13.12%. The company had revenue of $345.76 million during the quarter, compared to the consensus estimate of $340.23 million. During the same quarter in the previous year, the firm earned $0.33 earnings per share. The firm's quarterly revenue was up 4.9% on a year-over-year basis. On average, equities research analysts anticipate that Kodiak Gas Services, Inc. will post 2.27 EPS for the current fiscal year.

Kodiak Gas Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Monday, May 18th were given a dividend of $0.49 per share. This represents a $1.96 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Monday, May 18th. Kodiak Gas Services's payout ratio is 264.86%.

Insider Activity

In other news, COO William Chad Lenamon sold 1,000 shares of the company's stock in a transaction dated Monday, July 13th. The stock was sold at an average price of $67.79, for a total transaction of $67,790.00. Following the completion of the transaction, the chief operating officer directly owned 87,294 shares of the company's stock, valued at approximately $5,917,660.26. This represents a 1.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Cory Anne Roclawski sold 4,169 shares of the company's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $68.36, for a total value of $284,992.84. Following the transaction, the executive vice president directly owned 24,662 shares of the company's stock, valued at approximately $1,685,894.32. This represents a 14.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 13,523 shares of company stock worth $921,319. 0.64% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several brokerages recently issued reports on KGS. Zacks Research upgraded shares of Kodiak Gas Services from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 6th. Barclays lowered their target price on shares of Kodiak Gas Services from $76.00 to $72.00 and set an "overweight" rating for the company in a research note on Wednesday, July 8th. Wells Fargo & Company started coverage on shares of Kodiak Gas Services in a research report on Wednesday, May 27th. They set an "overweight" rating and a $93.00 price target for the company. Stifel Nicolaus boosted their price target on shares of Kodiak Gas Services from $84.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday. Finally, The Goldman Sachs Group upped their price objective on shares of Kodiak Gas Services from $69.00 to $88.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Nine research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $79.50.

About Kodiak Gas Services

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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