Vanguard Group Inc. Purchases 439,586 Shares of Kinetik Holdings Inc. $KNTK

Key Points

• Vanguard increased its Kinetik stake by 9.4% in the fourth quarter, buying 439,586 additional shares and bringing its total holding to 5.1 million shares worth about $183.7 million.
• Kinetik reported weaker-than-expected quarterly results, posting a loss of $0.07 per share versus estimates for a $0.16 profit, while revenue fell 7.5% year over year to $409.98 million.
• Wall Street remains cautiously positive on the stock, with analysts assigning a consensus rating of “Moderate Buy” and an average price target of $48.42, even as some firms recently trimmed or adjusted their views.

Vanguard Group Inc. raised its position in shares of Kinetik Holdings Inc. (NYSE:KNTK - Free Report) by 9.4% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 5,096,786 shares of the company's stock after purchasing an additional 439,586 shares during the quarter. Vanguard Group Inc. owned 3.15% of Kinetik worth $183,739,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the company. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT grew its stake in shares of Kinetik by 86.5% during the 4th quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,843,400 shares of the company's stock valued at $66,455,000 after purchasing an additional 855,000 shares during the period. Brave Warrior Advisors LLC bought a new position in shares of Kinetik during the 3rd quarter valued at approximately $68,766,000. Invesco Ltd. grew its stake in shares of Kinetik by 40.2% during the 3rd quarter. Invesco Ltd. now owns 1,449,965 shares of the company's stock valued at $61,972,000 after acquiring an additional 415,505 shares during the period. Chickasaw Capital Management LLC grew its stake in shares of Kinetik by 3.6% during the 4th quarter. Chickasaw Capital Management LLC now owns 1,137,460 shares of the company's stock valued at $41,005,000 after acquiring an additional 39,013 shares during the period. Finally, Bank of America Corp DE grew its stake in shares of Kinetik by 109.7% during the 2nd quarter. Bank of America Corp DE now owns 776,306 shares of the company's stock valued at $34,196,000 after acquiring an additional 406,160 shares during the period. 21.11% of the stock is currently owned by institutional investors.

Kinetik Price Performance

KNTK stock opened at $47.41 on Monday. Kinetik Holdings Inc. has a 1-year low of $31.33 and a 1-year high of $51.11. The company has a market capitalization of $7.69 billion, a price-to-earnings ratio of 19.35, a PEG ratio of 1.49 and a beta of 0.61. The business has a 50 day simple moving average of $46.84 and a two-hundred day simple moving average of $40.77.

Kinetik (NYSE:KNTK - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.23). Kinetik had a negative return on equity of 38.92% and a net margin of 28.58%.The business had revenue of $409.98 million during the quarter. During the same period last year, the firm earned $0.05 EPS. Kinetik's revenue for the quarter was down 7.5% compared to the same quarter last year. Sell-side analysts anticipate that Kinetik Holdings Inc. will post 1.02 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research analysts recently issued reports on KNTK shares. Barclays boosted their price objective on Kinetik from $44.00 to $46.00 and gave the company an "equal weight" rating in a research note on Friday, April 10th. Wolfe Research downgraded Kinetik from an "outperform" rating to a "peer perform" rating in a research note on Tuesday, January 27th. Scotiabank boosted their price objective on Kinetik from $49.00 to $51.00 and gave the company a "sector outperform" rating in a research note on Tuesday, March 17th. Truist Financial started coverage on Kinetik in a research note on Tuesday, March 24th. They set a "buy" rating and a $53.00 price objective for the company. Finally, UBS Group cut their price objective on Kinetik from $49.00 to $48.00 and set a "neutral" rating for the company in a research note on Monday, March 16th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $48.42.

Insiders Place Their Bets

In other news, insider Matthew Wall sold 3,222 shares of the stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $46.92, for a total transaction of $151,176.24. Following the completion of the transaction, the insider directly owned 585,556 shares in the company, valued at approximately $27,474,287.52. This represents a 0.55% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Isq Global Fund Ii Gp Llc sold 4,000,000 shares of the stock in a transaction that occurred on Thursday, February 26th. The shares were sold at an average price of $44.85, for a total value of $179,400,000.00. Following the transaction, the insider owned 1 shares of the company's stock, valued at $44.85. This represents a 100.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 5,078,855 shares of company stock valued at $232,935,999. 3.56% of the stock is owned by company insiders.

Kinetik Profile

Kinetik NYSE: KNTK is a publicly listed midstream energy company focused on the development, operation and management of natural gas infrastructure across the United States. The company's core business activities include the gathering, compression, processing, storage and transportation of natural gas, serving producers, utilities and industrial consumers. By integrating a suite of midstream services under a single platform, Kinetik aims to provide efficient, cost-effective and reliable solutions across the natural gas value chain.

The company was established in 2021 when assets were acquired from Talen Energy by a subsidiary of ArcLight Capital Partners, forming a comprehensive portfolio of pipelines, compression facilities and underground storage assets.

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