Kinetik (NYSE:KNTK) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Kinetik from "sell" to "hold"; the stock's consensus rating is "Hold" with an average analyst target of $46.27.
• Quarterly results beat expectations: Kinetik posted $2.16 EPS vs. $0.15 consensus and $430.4M revenue (up 11.5% year-over-year), though return on equity remained negative (-32.7%).
• Significant insider selling — Isq Global Fund II sold 4,000,000 shares for about $179.4M, and insiders have disposed of ~4,015,831 shares (~$180.1M) over the past 90 days.

Kinetik (NYSE:KNTK - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts have also recently issued reports on the company. Barclays boosted their price objective on Kinetik from $43.00 to $44.00 and gave the stock an "equal weight" rating in a report on Thursday. UBS Group dropped their price target on Kinetik from $49.00 to $48.00 and set a "neutral" rating for the company in a report on Monday, March 16th. Jefferies Financial Group downgraded Kinetik from a "buy" rating to a "hold" rating and set a $43.00 price target for the company. in a research note on Friday, February 6th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Kinetik in a report on Thursday, January 22nd. Finally, Scotiabank increased their price objective on Kinetik from $49.00 to $51.00 and gave the stock a "sector outperform" rating in a research report on Tuesday. Six analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Kinetik presently has a consensus rating of "Hold" and an average target price of $46.27.

Kinetik Price Performance

NYSE:KNTK opened at $45.87 on Friday. The company has a market cap of $7.41 billion, a P/E ratio of 17.85, a P/E/G ratio of 1.47 and a beta of 0.70. The firm's fifty day moving average price is $42.50 and its two-hundred day moving average price is $39.37. Kinetik has a one year low of $31.33 and a one year high of $54.94.

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

Insider Buying and Selling at Kinetik

In related news, insider Steven Stellato sold 2,907 shares of the 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 $136,396.44. Following the sale, the insider owned 393,382 shares of the company's stock, valued at $18,457,483.44. This represents a 0.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, major shareholder Isq Global Fund Ii Gp Llc sold 4,000,000 shares of the firm's stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $44.85, for a total value of $179,400,000.00. Following the transaction, the insider owned 1 shares in the company, valued at approximately $44.85. This trade represents a 100.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 4,015,831 shares of company stock valued at $180,054,928 over the last ninety days. Company insiders own 3.83% of the company's stock.

Institutional Trading of Kinetik

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in Kinetik by 9.4% in the fourth quarter. Vanguard Group Inc. now owns 5,096,786 shares of the company's stock valued at $183,739,000 after purchasing an additional 439,586 shares in the last quarter. Zimmer Partners LP bought a new stake in Kinetik during the fourth quarter worth about $98,611,000. Cohen & Steers Inc. grew its stake in Kinetik by 82.5% during the fourth quarter. Cohen & Steers Inc. now owns 1,843,506 shares of the company's stock worth $66,458,000 after buying an additional 833,224 shares in the last quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT increased its holdings in Kinetik by 86.5% in the 4th quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,843,400 shares of the company's stock valued at $66,455,000 after buying an additional 855,000 shares during the period. Finally, 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 valued at $63,997,000 after buying an additional 325,251 shares during the period. 21.11% of the stock is owned by institutional investors and hedge funds.

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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