T. Rowe Price Investment Management Inc. Invests $40.65 Million in Kodiak Gas Services, Inc. $KGS

Key Points

• T. Rowe Price Investment Management Inc. has invested $40.65 million in Kodiak Gas Services, acquiring approximately 1.1 million shares.
• Several hedge funds, including Zimmer Partners LP and Vanguard Group Inc., have also increased their stakes in Kodiak Gas Services, reflecting a growing institutional interest.
• Kodiak Gas Services announced a $50 million share buyback plan and declared a quarterly dividend of $0.45 per share, demonstrating confidence in its financial outlook.

T. Rowe Price Investment Management Inc. bought a new position in Kodiak Gas Services, Inc. (NYSE:KGS - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 1,089,751 shares of the company's stock, valued at approximately $40,648,000. T. Rowe Price Investment Management Inc. owned about 1.23% of Kodiak Gas Services as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of the stock. Zimmer Partners LP boosted its stake in shares of Kodiak Gas Services by 88.1% in the fourth quarter. Zimmer Partners LP now owns 3,347,700 shares of the company's stock worth $136,687,000 after buying an additional 1,567,849 shares during the last quarter. Invesco Ltd. boosted its stake in shares of Kodiak Gas Services by 3.5% in the first quarter. Invesco Ltd. now owns 3,044,939 shares of the company's stock worth $113,576,000 after buying an additional 102,157 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Kodiak Gas Services by 9.0% in the first quarter. Vanguard Group Inc. now owns 2,897,588 shares of the company's stock worth $108,080,000 after buying an additional 238,573 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Kodiak Gas Services by 14.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,650,183 shares of the company's stock worth $67,379,000 after buying an additional 202,050 shares during the last quarter. Finally, Encompass Capital Advisors LLC purchased a new stake in shares of Kodiak Gas Services in the fourth quarter worth about $66,122,000. Hedge funds and other institutional investors own 24.95% of the company's stock.

Analyst Ratings Changes

KGS has been the topic of a number of recent research reports. Barclays upped their target price on Kodiak Gas Services from $36.00 to $37.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 14th. Royal Bank Of Canada increased 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. Mizuho lowered their price target on Kodiak Gas Services from $46.00 to $45.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 20th. Finally, JPMorgan Chase & Co. reiterated a "buy" rating and set a $43.00 price target (up previously from $42.00) on shares of Kodiak Gas Services in a research report on Monday, June 23rd. Nine analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, Kodiak Gas Services currently has an average rating of "Moderate Buy" and a consensus price target of $41.10.

Kodiak Gas Services Stock Performance

Shares of KGS stock opened at $35.8040 on Friday. The business's 50 day moving average is $33.27 and its two-hundred day moving average is $35.71. Kodiak Gas Services, Inc. has a 12-month low of $25.21 and a 12-month high of $50.43. The company has a market capitalization of $3.14 billion, a P/E ratio of 39.78 and a beta of 1.33. 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 (NYSE:KGS - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $0.49 EPS for the quarter, beating analysts' consensus estimates 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 business had revenue of $322.84 million during the quarter, compared to analysts' expectations of $335.10 million. During the same quarter in the prior year, the firm earned $0.06 earnings per share. The business's revenue was up 4.2% compared to the same quarter last year. 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 approved a share repurchase plan on Monday, August 11th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the company to buy up to 1.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Kodiak Gas Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, August 4th were issued a dividend of $0.45 per share. The ex-dividend date of this dividend was Monday, August 4th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 5.0%. Kodiak Gas Services's dividend payout ratio is presently 200.00%.

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.

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