Kinetik (NYSE:KNTK) Posts Quarterly Earnings Results

Key Points

• Kinetik missed earnings: the company reported EPS of ($0.07) versus a $0.16 consensus (a $0.23 miss), and the stock fell about 4.4% to $48.23; the firm shows a 29.23% net margin but a negative return on equity of 32.70%.
• Heavy insider selling: insiders have sold 5,078,855 shares worth roughly $232.9 million in the last 90 days, including a major shareholder that cut its stake by 55.48%.
• Analyst view mixed but positive overall: MarketBeat data shows a consensus rating of "Moderate Buy" with a $48.33 price target, reflecting recent upgrades and a range of opinions from Strong Buy to Hold.

Kinetik (NYSE:KNTK - Get Free Report) released its earnings results on Wednesday. The company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.23), Zacks reports. Kinetik had a net margin of 29.23% and a negative return on equity of 32.70%.

Kinetik Trading Down 4.4%

Kinetik stock traded down $2.22 during trading hours on Wednesday, reaching $48.23. 1,416,597 shares of the stock were exchanged, compared to its average volume of 1,293,344. The company has a market cap of $7.82 billion, a P/E ratio of 18.77, a price-to-earnings-growth ratio of 1.61 and a beta of 0.61. The stock has a 50 day moving average of $46.69 and a two-hundred day moving average of $40.60. Kinetik has a twelve month low of $31.33 and a twelve month high of $51.11.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Jefferies Financial Group reiterated a "hold" rating and set a $50.00 target price (up from $49.00) on shares of Kinetik in a report on Wednesday, April 15th. Mizuho boosted their price objective on shares of Kinetik from $48.00 to $51.00 and gave the stock an "outperform" rating in a research report on Tuesday, April 28th. Wall Street Zen upgraded Kinetik from a "sell" rating to a "hold" rating in a research note on Sunday, April 26th. Royal Bank Of Canada reissued an "outperform" rating and issued a $50.00 price objective (up from $49.00) on shares of Kinetik in a research report on Thursday, April 16th. Finally, Truist Financial initiated coverage on Kinetik in a report on Tuesday, March 24th. They set a "buy" rating and a $53.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $48.33.

Insiders Place Their Bets

In other news, insider Steven Stellato sold 2,907 shares of Kinetik stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $46.92, for a total value of $136,396.44. Following the transaction, the insider owned 393,382 shares in the company, valued at approximately $18,457,483.44. This trade represents a 0.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Isq Global Fund Ii Gp Llc sold 534,564 shares of the company's stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $50.52, for a total value of $27,006,173.28. Following the sale, the insider owned 428,894 shares of the company's stock, valued at approximately $21,667,724.88. This represents a 55.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 5,078,855 shares of company stock worth $232,935,999. 3.56% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kinetik

Several hedge funds have recently modified their holdings of the company. Invesco Ltd. increased its holdings in Kinetik by 22.4% in the 4th quarter. Invesco Ltd. now owns 1,775,216 shares of the company's stock worth $63,997,000 after purchasing an additional 325,251 shares in the last quarter. Vident Advisory LLC boosted its stake in shares of Kinetik by 0.8% during the fourth quarter. Vident Advisory LLC now owns 61,246 shares of the company's stock valued at $2,208,000 after purchasing an additional 500 shares in the last quarter. Yaupon Capital Management LP bought a new stake in shares of Kinetik during the fourth quarter worth about $5,698,000. Zimmer Partners LP acquired a new position in shares of Kinetik in the fourth quarter valued at approximately $98,611,000. Finally, Virtus Investment Advisers LLC bought a new position in Kinetik in the 4th quarter valued at approximately $170,000. Institutional investors and hedge funds own 21.11% of the company's stock.

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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