Think Investments LP Invests $23.68 Million 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 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 acquired 634,794 shares of the company's stock, valued at approximately $23,678,000. Kodiak Gas Services accounts for approximately 4.6% of Think Investments LP's investment portfolio, making the stock its 9th biggest holding. Think Investments LP owned about 0.72% of Kodiak Gas Services at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Amalgamated Bank grew its holdings in Kodiak Gas Services by 40.0% in the first quarter. Amalgamated Bank now owns 1,554 shares of the company's stock worth $58,000 after purchasing an additional 444 shares during the period. Rhumbline Advisers grew its holdings in Kodiak Gas Services by 37.3% in the first quarter. Rhumbline Advisers now owns 60,450 shares of the company's stock worth $2,255,000 after purchasing an additional 16,408 shares during the period. GAMMA Investing LLC lifted its stake in shares of Kodiak Gas Services by 3,401.8% in the first quarter. GAMMA Investing LLC now owns 24,618 shares of the company's stock worth $918,000 after buying an additional 23,915 shares in the last quarter. KBC Group NV bought a new position in shares of Kodiak Gas Services in the first quarter worth approximately $116,000. Finally, Bank of New York Mellon Corp lifted its stake in shares of Kodiak Gas Services by 13.4% in the first quarter. Bank of New York Mellon Corp now owns 443,666 shares of the company's stock worth $16,549,000 after buying an additional 52,522 shares in the last quarter. Hedge funds and other institutional investors own 24.95% of the company's stock.

Analysts Set New Price Targets

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

Kodiak Gas Services Stock Performance

KGS stock traded up $0.58 during midday trading on Thursday, reaching $33.65. 2,032,758 shares of the company's stock traded hands, compared to its average volume of 1,299,132. Kodiak Gas Services, Inc. has a 52-week low of $25.87 and a 52-week high of $50.43. The stock has a market cap of $2.92 billion, a P/E ratio of 37.39 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. The stock's 50-day moving average is $33.49 and its 200 day moving average is $34.85.

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 net margin of 6.48% and a return on equity of 10.35%. The business had revenue of $322.84 million during the quarter, compared to analysts' expectations of $335.10 million. During the same period in the prior year, the company earned $0.06 earnings per share. The firm's revenue was up 4.2% on a year-over-year basis. As a group, analysts anticipate that Kodiak Gas Services, Inc. will post 1.12 EPS for the current year.

Kodiak Gas Services announced that its Board of Directors has approved a share buyback plan on Monday, August 11th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to purchase up to 1.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's management believes its shares are undervalued.

Kodiak Gas Services Dividend Announcement

The firm 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. This represents a $1.80 dividend on an annualized basis and a yield of 5.3%. The ex-dividend date of this dividend was Monday, August 4th. Kodiak Gas Services's dividend payout ratio is currently 200.00%.

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.