Zimmer Partners LP Invests $102.12 Million in Kinetik Holdings Inc. $KNTK

Key Points

• Zimmer Partners LP acquired 1,966,187 shares of Kinetik Holdings Inc. for $102 million, representing about 1.9% of its investment portfolio, making it the firm's 16th largest holding.
• Kinetik Holdings declared a quarterly dividend of $0.78, leading to an annual yield of 7.5%, although its payout ratio is notably high at 421.62%.
• The stock is currently trading at $41.58, with a market capitalization of $6.73 billion and has seen a 52-week high of $67.60 and a low of $39.25.

Zimmer Partners LP purchased a new position in Kinetik Holdings Inc. (NYSE:KNTK - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,966,187 shares of the company's stock, valued at approximately $102,124,000. Kinetik makes up about 1.9% of Zimmer Partners LP's holdings, making the stock its 16th biggest position. Zimmer Partners LP owned approximately 1.25% of Kinetik at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of KNTK. Bell Investment Advisors Inc purchased a new stake in shares of Kinetik in the first quarter worth about $41,000. Comerica Bank lifted its holdings in shares of Kinetik by 32.2% in the fourth quarter. Comerica Bank now owns 800 shares of the company's stock worth $45,000 after buying an additional 195 shares in the last quarter. Nisa Investment Advisors LLC lifted its holdings in shares of Kinetik by 141.6% in the first quarter. Nisa Investment Advisors LLC now owns 1,133 shares of the company's stock worth $59,000 after buying an additional 664 shares in the last quarter. Rossby Financial LCC purchased a new stake in shares of Kinetik in the first quarter worth about $78,000. Finally, KBC Group NV purchased a new stake in shares of Kinetik in the first quarter worth about $95,000. 21.11% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on KNTK. Zacks Research raised shares of Kinetik from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 13th. Mizuho set a $53.00 target price on shares of Kinetik and gave the company an "outperform" rating in a research note on Friday, August 29th. Scotiabank reaffirmed an "outperform" rating on shares of Kinetik in a research note on Monday, September 8th. Citigroup reaffirmed a "buy" rating on shares of Kinetik in a research note on Tuesday, June 10th. Finally, Barclays lowered their target price on shares of Kinetik from $49.00 to $43.00 and set an "equal weight" rating on the stock in a research note on Monday, July 14th. Six research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $54.67.

Kinetik Trading Up 1.2%

Shares of KNTK stock traded up $0.54 during trading hours on Friday, hitting $43.79. 1,202,920 shares of the company's stock were exchanged, compared to its average volume of 1,448,328. The company has a market capitalization of $7.09 billion, a PE ratio of 59.18 and a beta of 3.16. Kinetik Holdings Inc. has a 12-month low of $39.25 and a 12-month high of $67.60. The business's 50 day simple moving average is $41.74 and its 200-day simple moving average is $44.52.

Kinetik (NYSE:KNTK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.14 by $0.19. Kinetik had a net margin of 8.21% and a negative return on equity of 6.16%. Kinetik's revenue was up 18.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.54 EPS.

Kinetik Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 1st. Shareholders of record on Friday, July 25th were paid a dividend of $0.78 per share. The ex-dividend date of this dividend was Friday, July 25th. This represents a $3.12 annualized dividend and a dividend yield of 7.1%. Kinetik's dividend payout ratio (DPR) is 421.62%.

Kinetik Profile

Kinetik Holdings Inc operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.