Kinetik (NYSE:KNTK) Reaches New 1-Year High on Analyst Upgrade

Key Points

• Shares hit a new 52-week high after Mizuho raised its price target to $51 and maintained an outperform rating; KNTK traded as high as $49.69 and last around $49.10.
• Kinetik delivered a strong quarterly beat, reporting EPS of $2.16 versus $0.15 expected and revenue of $430.42M (up 11.5%) with a 29.23% net margin.
• Large insider selling recently: insiders sold 4,167,948 shares worth about $187.48M in the past three months, though insiders still own 3.56% of the company.

Shares of Kinetik Holdings Inc. (NYSE:KNTK - Get Free Report) hit a new 52-week high during trading on Wednesday after Mizuho raised their price target on the stock from $48.00 to $51.00. Mizuho currently has an outperform rating on the stock. Kinetik traded as high as $49.69 and last traded at $49.10, with a volume of 118195 shares changing hands. The stock had previously closed at $48.87.

A number of other analysts have also recently commented on the stock. Barclays upped their target price on shares of Kinetik from $44.00 to $46.00 and gave the company an "equal weight" rating in a report on Friday, April 10th. Truist Financial started coverage on shares of Kinetik in a report on Tuesday, March 24th. They set a "buy" rating and a $53.00 target price for the company. Zacks Research raised shares of Kinetik from a "strong sell" rating to a "hold" rating in a report on Thursday, March 26th. Scotiabank upped their target price on shares of Kinetik from $49.00 to $51.00 and gave the company a "sector outperform" rating in a report on Tuesday, March 17th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Kinetik in a report on Tuesday, April 21st. One investment 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 company's stock. According to data from MarketBeat.com, Kinetik has an average rating of "Moderate Buy" and a consensus price target of $48.33.

Insider Activity at Kinetik

In related news, insider Trevor Howard sold 1,619 shares of the company's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $46.92, for a total transaction of $75,963.48. Following the completion of the transaction, the insider owned 249,795 shares in the company, valued at approximately $11,720,381.40. This represents a 0.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Matthew Wall sold 3,222 shares of the company's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $46.92, for a total transaction of $151,176.24. Following the transaction, the insider owned 585,556 shares of the company's stock, valued at approximately $27,474,287.52. This represents a 0.55% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 4,167,948 shares of company stock worth $187,477,156 in the last three months. Insiders own 3.56% of the company's stock.

Hedge Funds Weigh In On Kinetik

A number of hedge funds and other institutional investors have recently modified their holdings of KNTK. Comerica Bank boosted its position in shares of Kinetik by 91.5% during the first quarter. Comerica Bank now owns 1,532 shares of the company's stock worth $80,000 after acquiring an additional 732 shares during the last quarter. AQR Capital Management LLC lifted its position in Kinetik by 4.2% during the first quarter. AQR Capital Management LLC now owns 12,900 shares of the company's stock valued at $670,000 after purchasing an additional 522 shares during the last quarter. Millennium Management LLC lifted its position in Kinetik by 88.7% during the first quarter. Millennium Management LLC now owns 132,533 shares of the company's stock valued at $6,884,000 after purchasing an additional 62,306 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Kinetik by 27.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 79,532 shares of the company's stock valued at $4,131,000 after purchasing an additional 17,034 shares during the last quarter. Finally, Intech Investment Management LLC lifted its position in Kinetik by 14.3% during the first quarter. Intech Investment Management LLC now owns 22,114 shares of the company's stock valued at $1,149,000 after purchasing an additional 2,766 shares during the last quarter. Institutional investors own 21.11% of the company's stock.

Kinetik Price Performance

The company's 50-day simple moving average is $46.38 and its 200 day simple moving average is $40.32. The firm has a market cap of $7.97 billion, a P/E ratio of 19.12, a price-to-earnings-growth ratio of 1.51 and a beta of 0.66.

Kinetik (NYSE:KNTK - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported $2.16 EPS for the quarter, beating the consensus estimate of $0.15 by $2.01. Kinetik had a net margin of 29.23% and a negative return on equity of 32.70%. The business had revenue of $430.42 million during the quarter. During the same quarter last year, the business earned $0.01 EPS. Kinetik's revenue for the quarter was up 11.5% compared to the same quarter last year. Analysts anticipate that Kinetik Holdings Inc. will post 1.01 EPS for the current fiscal year.

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.

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