Kinetik (NYSE:KNTK) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Kinetik to a "sell" from "hold," signaling increased analyst caution in a recent report.
• Despite that downgrade, the MarketBeat consensus remains a "Moderate Buy" with an average price target of $48.08, and several firms (Truist, Wells Fargo, Scotiabank) continue to carry Buy/Overweight ratings with targets in the mid-$40s to low-$50s.
• Kinetik posted a major quarterly beat — EPS $2.16 vs. $0.15 expected and revenue up 11.5% to $430.4M — but insiders have been net sellers (≈4.01M shares, $179.8M over three months) and the company showed a negative ROE of 32.7%.

Kinetik (NYSE:KNTK - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

KNTK has been the topic of several other research reports. Raymond James Financial set a $46.00 price objective on Kinetik in a research note on Monday, January 5th. Weiss Ratings restated a "hold (c)" rating on shares of Kinetik in a research note on Thursday, January 22nd. 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 on the stock. Scotiabank upped 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. Finally, Wells Fargo & Company upgraded Kinetik from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $47.00 to $52.00 in a research note on Wednesday, March 25th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $48.08.

Kinetik Price Performance

Shares of NYSE KNTK opened at $46.59 on Friday. Kinetik has a 1-year low of $31.33 and a 1-year high of $49.55. The business has a 50-day moving average of $45.52 and a 200-day moving average of $39.89. The company has a market capitalization of $7.55 billion, a price-to-earnings ratio of 18.13, a PEG ratio of 1.56 and a beta of 0.66.

Kinetik (NYSE:KNTK - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $2.16 EPS for the quarter, topping the consensus estimate of $0.15 by $2.01. Kinetik had a negative return on equity of 32.70% and a net margin of 29.23%.The business had revenue of $430.42 million for the quarter. During the same quarter last year, the firm posted $0.01 EPS. The company's revenue was up 11.5% compared to the same quarter last year.

Insider Buying and Selling

In other news, insider Trevor Howard sold 1,619 shares of the company's 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 $75,963.48. Following the completion of the transaction, the insider directly owned 249,795 shares of the company's stock, valued at approximately $11,720,381.40. This represents a 0.64% 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 the SEC website. Also, insider Steven Stellato sold 2,907 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $46.92, for a total value of $136,396.44. Following the transaction, the insider directly owned 393,382 shares of the company's stock, valued at $18,457,483.44. This trade represents a 0.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 4,007,748 shares of company stock valued at $179,763,536 over the last three months. 3.83% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kinetik

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KNTK. CWM LLC grew its holdings in Kinetik by 89.8% in the 4th quarter. CWM LLC now owns 744 shares of the company's stock worth $27,000 after buying an additional 352 shares in the last quarter. Signaturefd LLC grew its holdings in Kinetik by 101.5% in the 4th quarter. Signaturefd LLC now owns 802 shares of the company's stock worth $29,000 after buying an additional 404 shares in the last quarter. Kestra Advisory Services LLC bought a new position in Kinetik in the 4th quarter worth approximately $33,000. Los Angeles Capital Management LLC bought a new position in Kinetik in the 4th quarter worth approximately $40,000. Finally, Huntington National Bank grew its holdings in Kinetik by 139.1% in the 4th quarter. Huntington National Bank now owns 1,222 shares of the company's stock worth $44,000 after buying an additional 711 shares in the last quarter. 21.11% of the stock is owned by institutional investors.

About Kinetik

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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