Kinetik (NYSE:KNTK) Hits New 12-Month Low - Here's Why

Key Points

• Kinetik Holdings Inc. (NYSE:KNTK) has hit a new 52-week low, trading as low as $38.10 recently, compared to a previous close of $39.50.
• Despite recent downgrades from analysts, six investment analysts maintain a Buy rating and the stock has a consensus rating of "Moderate Buy" with an average price target of $54.67.
• Kinetik announced a quarterly dividend of $0.78 per share, representing an annualized dividend of $3.12 and an 8.1% yield, although its dividend payout ratio is significantly high at 421.62%.

Kinetik Holdings Inc. (NYSE:KNTK - Get Free Report)'s stock price reached a new 52-week low on Wednesday . The company traded as low as $38.10 and last traded at $38.14, with a volume of 87375 shares traded. The stock had previously closed at $39.50.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on KNTK shares. Mizuho set a $53.00 target price on shares of Kinetik and gave the stock an "outperform" rating in a research report on Friday, August 29th. Scotiabank reissued an "outperform" rating on shares of Kinetik in a research report on Monday, September 8th. Weiss Ratings reissued a "hold (c)" rating on shares of Kinetik in a research report on Saturday, September 27th. Zacks Research raised shares of Kinetik from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 13th. Finally, Wall Street Zen downgraded shares of Kinetik from a "hold" rating to a "sell" rating in a research report on Sunday, September 28th. Six investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $54.67.

Kinetik Trading Down 3.0%

The company's 50 day moving average price is $42.05 and its two-hundred day moving average price is $43.35. The stock has a market cap of $6.21 billion, a P/E ratio of 51.80, a PEG ratio of 0.96 and a beta of 3.11.

Kinetik (NYSE:KNTK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $0.33 earnings per share 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%. During the same period in the previous year, the firm posted $0.54 EPS. The firm's revenue for the quarter was up 18.7% compared to the same quarter last year.

Kinetik Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 1st. Stockholders of record on Friday, July 25th were paid a $0.78 dividend. This represents a $3.12 annualized dividend and a dividend yield of 8.1%. The ex-dividend date was Friday, July 25th. Kinetik's dividend payout ratio is 421.62%.

Insider Buying and Selling at Kinetik

In other Kinetik news, insider Jamie Welch acquired 5,000 shares of the stock in a transaction dated Thursday, October 2nd. The shares were purchased at an average price of $39.13 per share, for a total transaction of $195,650.00. Following the purchase, the insider directly owned 3,676,399 shares of the company's stock, valued at approximately $143,857,492.87. This trade represents a 0.14% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. 3.83% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kinetik

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KNTK. Zimmer Partners LP purchased a new stake in Kinetik in the 1st quarter worth approximately $102,124,000. RR Advisors LLC purchased a new stake in Kinetik in the 2nd quarter worth approximately $22,471,000. Adage Capital Partners GP L.L.C. purchased a new stake in Kinetik in the 2nd quarter worth approximately $22,025,000. Chickasaw Capital Management LLC increased its holdings in Kinetik by 63.9% in the 3rd quarter. Chickasaw Capital Management LLC now owns 1,098,447 shares of the company's stock worth $46,948,000 after acquiring an additional 428,103 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings in 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 buying an additional 406,160 shares in the last quarter. 21.11% of the stock is owned by hedge funds and other institutional investors.

Kinetik Company 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.

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