Verbena Value LP Buys Shares of 117,400 Kodiak Gas Services, Inc. $KGS

Key Points

• Verbena Value LP opened a new position in Kodiak Gas Services during the first quarter, buying 117,400 shares worth about $6.85 million. The stake represents roughly 1.1% of the fund’s portfolio and about 0.14% of Kodiak Gas Services.
• Wall Street remains mostly positive on KGS, with eight analysts rating it a Buy and two rating it Hold. The stock’s consensus target price is $78.75, while several firms recently raised or set targets in the low-to-high $70s.
• Kodiak Gas Services recently beat earnings expectations, reporting $0.59 EPS versus $0.54 expected and revenue of $345.76 million. The company also paid a quarterly dividend of $0.49 per share, equal to a 2.9% annualized yield.

Verbena Value LP bought a new stake in Kodiak Gas Services, Inc. (NYSE:KGS - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 117,400 shares of the company's stock, valued at approximately $6,847,000. Kodiak Gas Services accounts for approximately 1.1% of Verbena Value LP's investment portfolio, making the stock its 20th largest holding. Verbena Value LP owned approximately 0.14% of Kodiak Gas Services at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in shares of Kodiak Gas Services by 33.8% during the fourth quarter. Vanguard Group Inc. now owns 6,170,360 shares of the company's stock worth $230,771,000 after purchasing an additional 1,559,172 shares during the period. Invesco Ltd. raised its position in Kodiak Gas Services by 29.5% during the 3rd quarter. Invesco Ltd. now owns 6,305,789 shares of the company's stock worth $233,125,000 after buying an additional 1,436,443 shares during the last quarter. CIBC Private Wealth Group LLC raised its position in Kodiak Gas Services by 3,046.3% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,471,663 shares of the company's stock worth $55,040,000 after buying an additional 1,424,888 shares during the last quarter. Zimmer Partners LP lifted its stake in shares of Kodiak Gas Services by 45.7% in the 4th quarter. Zimmer Partners LP now owns 4,271,553 shares of the company's stock worth $159,756,000 after acquiring an additional 1,339,849 shares during the period. Finally, Eagle Global Advisors LLC acquired a new stake in shares of Kodiak Gas Services in the 4th quarter worth $39,741,000. Institutional investors and hedge funds own 24.95% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on KGS. Weiss Ratings reiterated a "hold (c+)" rating on shares of Kodiak Gas Services in a research note on Friday, May 29th. Jefferies Financial Group initiated coverage on shares of Kodiak Gas Services in a research report on Thursday, June 4th. They issued a "buy" rating and a $79.00 price objective for the company. Stifel Nicolaus set a $84.00 price objective on Kodiak Gas Services in a report on Tuesday, May 12th. The Goldman Sachs Group boosted their target price on Kodiak Gas Services from $69.00 to $88.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Finally, Barclays cut their target price on 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. Eight equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $78.75.

Kodiak Gas Services Stock Performance

Shares of KGS opened at $67.69 on Monday. Kodiak Gas Services, Inc. has a 12-month low of $30.06 and a 12-month high of $77.68. The stock has a market cap of $6.01 billion, a P/E ratio of 91.48, a PEG ratio of 1.05 and a beta of 0.89. The company has a current ratio of 1.28, a quick ratio of 0.99 and a debt-to-equity ratio of 2.38. The company has a 50-day moving average of $70.41 and a two-hundred day moving average of $57.54.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last released its quarterly earnings results on Monday, May 11th. The company reported $0.59 EPS for the quarter, beating the consensus estimate 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 business had revenue of $345.76 million for the quarter, compared to analyst estimates of $340.23 million. During the same period in the prior year, the business earned $0.33 earnings per share. The company's quarterly revenue was up 4.9% on a year-over-year basis. As a group, research analysts predict that Kodiak Gas Services, Inc. will post 2.3 EPS for the current fiscal year.

Kodiak Gas Services Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Monday, May 18th were issued a dividend of $0.49 per share. This represents a $1.96 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Monday, May 18th. Kodiak Gas Services's dividend payout ratio is 264.86%.

Insider Buying and Selling

In other Kodiak Gas Services news, CAO Ewan William Hamilton sold 2,729 shares of the firm's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $68.62, for a total transaction of $187,263.98. Following the completion of the transaction, the chief accounting officer owned 31,617 shares of the company's stock, valued at approximately $2,169,558.54. This trade represents a 7.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, COO William Chad Lenamon sold 1,000 shares of the company's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $67.79, for a total value of $67,790.00. Following the completion of the sale, the chief operating officer owned 90,918 shares in the company, valued at $6,163,331.22. This represents a 1.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 12,523 shares of company stock worth $853,529 in the last 90 days. Corporate insiders own 0.64% of the company's stock.

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. 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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