Kinetik (NYSE:KNTK) Downgraded to Hold Rating by Clear Str

Key Points

• Clear Street downgraded Kinetik from “strong buy” to “hold,” citing limited upside after the stock’s post-earnings rise. Kinetik shares opened at $54.75, near their 52-week high of $54.87.
• Kinetik reported strong quarterly results, with EPS of $0.64 versus the $0.19 consensus and revenue of $581.44 million, up 36.3% year over year. Despite the downgrade, analysts maintain a “Moderate Buy” consensus and an average price target of $53.27.
• Insiders have sold substantial amounts of stock, including a major shareholder’s $11.9 million sale; insiders sold 937,841 shares worth $48.5 million over the past 90 days, potentially adding near-term selling pressure.

Kinetik (NYSE:KNTK - Get Free Report) was downgraded by equities researchers at Clear Str from a "strong-buy" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

KNTK has been the topic of several other research reports. Wall Street Zen upgraded shares of Kinetik from a "strong sell" rating to a "hold" rating in a report on Saturday, August 8th. Weiss Ratings upgraded shares of Kinetik from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, August 11th. Barclays set a $51.00 price target on Kinetik and gave the company an "equal weight" rating in a research note on Thursday, August 6th. US Capital Advisors raised Kinetik from a "moderate buy" rating to a "strong-buy" rating in a research note on Friday, May 29th. Finally, Mizuho raised their target price on Kinetik from $48.00 to $51.00 and gave the company an "outperform" rating in a report on Tuesday, April 28th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $53.27.

Kinetik Stock Performance

KNTK stock opened at $54.75 on Monday. The stock's 50 day simple moving average is $49.25 and its 200 day simple moving average is $47.28. The company has a market cap of $8.89 billion, a P/E ratio of 19.84, a price-to-earnings-growth ratio of 1.32 and a beta of 0.56. Kinetik has a fifty-two week low of $31.33 and a fifty-two week high of $54.87.

Kinetik (NYSE:KNTK - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.19 by $0.45. Kinetik had a negative return on equity of 38.96% and a net margin of 26.19%.The firm had revenue of $581.44 million during the quarter, compared to the consensus estimate of $421.48 million. During the same quarter in the previous year, the company posted $0.33 earnings per share. The company's quarterly revenue was up 36.3% on a year-over-year basis. Equities analysts predict that Kinetik will post 1.3 earnings per share for the current year.

Insider Activity

In related news, major shareholder Isq Global Fund Ii Gp Llc sold 235,349 shares of the business's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $50.52, for a total transaction of $11,889,831.48. Following the transaction, the insider directly owned 1,691,370 shares in the company, valued at approximately $85,448,012.40. The trade was a 12.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Deborah L. Byers sold 2,739 shares of the company's stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $51.51, for a total transaction of $141,085.89. Following the completion of the sale, the director directly owned 24,389 shares of the company's stock, valued at $1,256,277.39. The trade was a 10.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 937,841 shares of company stock worth $48,468,322. 3.56% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. CWM LLC increased its position in shares of Kinetik by 89.8% during the 4th quarter. CWM LLC now owns 744 shares of the company's stock valued at $27,000 after purchasing an additional 352 shares during the last quarter. Kestra Advisory Services LLC purchased a new position in shares of Kinetik in the 4th quarter worth about $33,000. Los Angeles Capital Management LLC bought a new position in Kinetik during the fourth quarter valued at about $40,000. Huntington National Bank grew its position in Kinetik by 139.1% during the fourth quarter. Huntington National Bank now owns 1,222 shares of the company's stock valued at $44,000 after buying an additional 711 shares during the period. Finally, Advisory Services Network LLC purchased a new stake in Kinetik during the third quarter worth about $55,000. Hedge funds and other institutional investors own 21.11% of the company's stock.

More Kinetik News

Here are the key news stories impacting Kinetik this week:

• Positive Sentiment: Kinetik’s latest quarterly results remain a key bullish catalyst: earnings per share of $0.64 exceeded the $0.19 consensus estimate, while revenue rose 36.3% year over year to $581.44 million, well above expectations. The company’s results suggest continued operating momentum in its natural-gas infrastructure business.
• Neutral Sentiment: Analyst sentiment remains generally favorable, with Kinetik carrying a “Moderate Buy” consensus rating and several firms maintaining or raising price targets to $57. However, the average target of $52.87 is below the current trading level, implying limited consensus upside.
• Negative Sentiment: Major shareholder ISQ Global Fund II GP LLC has continued reducing its position, selling 113,075 shares on August 13 for $5.83 million, 112,160 shares on August 14 for $6.00 million, and 135,102 shares on August 17 for $7.13 million. The repeated transactions may create a supply overhang and raise concerns about near-term selling pressure, although they do not necessarily indicate deterioration in Kinetik’s operations. Kinetik major shareholder sells 112,160 shares Kinetik major shareholder sells 135,102 shares ISQ Global Fund II GP sells Kinetik shares
• Negative Sentiment: Clear Street reportedly cut its view on Kinetik, citing limited upside after the stock’s post-earnings advance. That downgrade could weigh on sentiment as investors assess whether the strong earnings performance is already reflected in the valuation. Clear Street cuts Kinetik with limited upside seen

Kinetik Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source