Kinetik (NYSE:KNTK) Reaches New 1-Year High - Time to Buy?

Key Points

• Kinetik shares reached a new 52-week high of $54.84 after the company reported quarterly EPS of $0.64, far exceeding the $0.19 consensus estimate, while revenue increased 36.3% year over year to $581.4 million.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of $53.27; however, that target is below the current share price, suggesting limited near-term upside.
• Significant insider and shareholder selling—including more than 937,000 insider shares sold in the past three months and over 1 million shares sold by ISQ Global Fund II—could create an overhang despite the stock’s strong momentum.

Shares of Kinetik Holdings Inc. (NYSE:KNTK - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $54.84 and last traded at $54.57, with a volume of 55075 shares. The stock had previously closed at $52.98.

Kinetik News Roundup

Here are the key news stories impacting Kinetik this week:

• Positive Sentiment: Kinetik’s most recent quarterly results were significantly better than expected. Earnings per share reached $0.64 versus the $0.19 consensus estimate, while revenue rose 36.3% year over year to $581.4 million, well above forecasts. The earnings beat and continued revenue growth help support the stock’s recent strength.
• Positive Sentiment: Several analysts remain constructive on Kinetik, including JPMorgan and RBC, which have assigned $57 price targets and overweight or outperform ratings. The broader analyst consensus is “Moderate Buy,” although the average target is close to the current trading level.
• Neutral Sentiment: Kinetik’s shares are trading above both their 50-day and 200-day moving averages, reflecting strong recent momentum. However, the stock is also near its one-year high, which may limit near-term upside after the post-earnings advance.
• Negative Sentiment: Major shareholder ISQ Global Fund II GP LLC has continued reducing its position, selling 113,075 shares on August 13, 112,160 shares on August 14 and 135,102 shares on August 17. The three reported sales totaled 360,337 shares and were worth approximately $19.0 million. Additional sales earlier in August bring the disclosed selling activity to more than 1 million shares, potentially creating an overhang and signaling that the shareholder is taking profits. Kinetik major shareholder stock sale
• Negative Sentiment: Clear Street reportedly lowered its view on Kinetik, citing limited upside after the stock’s post-earnings gain. This adds to concerns that much of the recent earnings optimism may already be reflected in the share price. Clear Street cuts Kinetik with limited upside

Analysts Set New Price Targets

Several equities analysts recently commented on KNTK shares. Jefferies Financial Group reiterated a "hold" rating and issued a $51.00 target price on shares of Kinetik in a research note on Friday, May 8th. US Capital Advisors raised Kinetik from a "moderate buy" rating to a "strong-buy" rating in a research note on Friday, May 29th. Royal Bank Of Canada restated an "outperform" rating and issued a $57.00 price target (up from $56.00) on shares of Kinetik in a report on Tuesday, August 11th. Wall Street Zen raised shares of Kinetik from a "strong sell" rating to a "hold" rating in a research note on Saturday, August 8th. Finally, Zacks Research upgraded shares of Kinetik from a "hold" rating to a "strong-buy" rating in a report on Monday, July 27th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $53.27.

Kinetik Trading Up 2.5%

The firm has a market capitalization of $8.82 billion, a price-to-earnings ratio of 19.67, a price-to-earnings-growth ratio of 1.32 and a beta of 0.56. The firm has a 50 day moving average price of $49.07 and a two-hundred day moving average price of $47.18.

Kinetik (NYSE:KNTK - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.19 by $0.45. The firm had revenue of $581.44 million during the quarter, compared to the consensus estimate of $421.48 million. Kinetik had a net margin of 26.19% and a negative return on equity of 38.96%. The company's revenue was up 36.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.33 EPS. As a group, research analysts forecast that Kinetik Holdings Inc. will post 1.3 earnings per share for the current year.

Insider Buying and Selling at Kinetik

In related news, Director Deborah L. Byers sold 2,739 shares of Kinetik stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $51.51, for a total transaction of $141,085.89. Following the transaction, the director owned 24,389 shares in the company, valued at approximately $1,256,277.39. The trade was a 10.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, major shareholder Isq Global Fund Ii Gp Llc sold 135,102 shares of the company's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $52.78, for a total transaction of $7,130,683.56. Following the sale, the insider directly owned 993,792 shares of the company's stock, valued at approximately $52,452,341.76. This trade represents a 11.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 937,841 shares of company stock valued at $48,468,322 in the last three months. Company insiders own 3.56% of the company's stock.

Institutional Trading of Kinetik

Several large investors have recently added to or reduced their stakes in the stock. CWM LLC lifted its stake in shares of Kinetik by 89.8% during the fourth quarter. CWM LLC now owns 744 shares of the company's stock worth $27,000 after purchasing an additional 352 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Kinetik in the fourth quarter worth about $33,000. Los Angeles Capital Management LLC acquired a new stake in shares of Kinetik in the fourth quarter valued at about $40,000. Huntington National Bank grew its stake in shares of Kinetik by 139.1% in the fourth quarter. Huntington National Bank now owns 1,222 shares of the company's stock valued at $44,000 after buying an additional 711 shares in the last quarter. Finally, SBI Okasan Asset Management Co.Ltd. purchased a new stake in shares of Kinetik during the 4th quarter valued at about $47,000. 21.11% of the stock is currently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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