Think Investments LP Makes New $23.68 Million Investment in Kodiak Gas Services, Inc. $KGS

Key Points

• Think Investments LP purchased 634,794 shares of Kodiak Gas Services, Inc. for approximately $23.7 million, making it the firm's 9th largest position.
• Analysts have increased price targets for Kodiak Gas Services, with a prevailing consensus rating of "Moderate Buy" and a price target of $41.30.
• Kodiak Gas Services announced a quarterly dividend of $0.45 per share and approved a stock buyback program worth $50 million, indicating strong investor confidence.

Think Investments LP acquired a new stake in Kodiak Gas Services, Inc. (NYSE:KGS - Free Report) during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 634,794 shares of the company's stock, valued at approximately $23,678,000. Kodiak Gas Services makes up 4.6% of Think Investments LP's portfolio, making the stock its 9th largest position. Think Investments LP owned about 0.72% of Kodiak Gas Services as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently made changes to their positions in KGS. Raymond James Financial Inc. bought a new stake in Kodiak Gas Services during the 4th quarter valued at approximately $276,000. Stifel Financial Corp grew its holdings in Kodiak Gas Services by 6.9% during the 4th quarter. Stifel Financial Corp now owns 15,655 shares of the company's stock valued at $639,000 after buying an additional 1,007 shares in the last quarter. Voya Investment Management LLC bought a new stake in shares of Kodiak Gas Services during the fourth quarter valued at approximately $300,000. The Manufacturers Life Insurance Company lifted its holdings in shares of Kodiak Gas Services by 32.4% in the fourth quarter. The Manufacturers Life Insurance Company now owns 17,900 shares of the company's stock worth $731,000 after buying an additional 4,376 shares in the last quarter. Finally, Northern Trust Corp lifted its holdings in shares of Kodiak Gas Services by 72.3% in the fourth quarter. Northern Trust Corp now owns 382,238 shares of the company's stock worth $15,607,000 after buying an additional 160,441 shares in the last quarter. Institutional investors own 24.95% of the company's stock.

Kodiak Gas Services Trading Down 1.0%

Shares of NYSE:KGS traded down $0.35 during trading on Friday, hitting $33.36. The company had a trading volume of 686,263 shares, compared to its average volume of 1,297,213. The stock has a market cap of $2.89 billion, a price-to-earnings ratio of 37.11 and a beta of 1.34. Kodiak Gas Services, Inc. has a one year low of $26.12 and a one year high of $50.43. The company has a fifty day simple moving average of $33.49 and a two-hundred day simple moving average of $34.79. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.10 and a quick ratio of 0.78.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.49 earnings per share 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 firm had revenue of $322.84 million for the quarter, compared to the consensus estimate of $335.10 million. During the same quarter in the previous year, the company posted $0.06 EPS. The company's revenue for the quarter was up 4.2% compared to the same quarter last year. As a group, equities analysts forecast that Kodiak Gas Services, Inc. will post 1.12 earnings per share for the current year.

Kodiak Gas Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, August 4th were paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 5.4%. The ex-dividend date of this dividend was Monday, August 4th. Kodiak Gas Services's payout ratio is presently 200.00%.

Kodiak Gas Services declared that its board has approved a stock repurchase program on Monday, August 11th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the company to repurchase up to 1.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Analyst Ratings Changes

KGS has been the subject of several research analyst reports. Zacks Research cut shares of Kodiak Gas Services from a "strong-buy" rating to a "hold" rating in a research note on Wednesday. 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. Royal Bank Of Canada boosted their target price 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 increased their price target on Kodiak Gas Services from $45.00 to $47.00 and gave the company an "outperform" rating in a research note on Friday, August 29th. Finally, JPMorgan Chase & Co. reaffirmed a "buy" rating and issued a $43.00 price objective (up previously from $42.00) on shares of Kodiak Gas Services in a research note on Monday, June 23rd. Nine analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $41.30.

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.