Kinetik (NYSE:KNTK) Stock Price Down 3.7% - Should You Sell?

Key Points

• Kinetik Holdings Inc. (NYSE:KNTK) experienced a significant drop of 3.7% in stock price on Wednesday, closing at $41.15 with an unusually low trading volume.
• Analysts have mixed opinions on the stock, with a consensus price target of $54.67 and ratings ranging from "outperform" to "equal weight."
• The company recently declared a quarterly dividend of $0.78 per share, reflecting an annualized yield of 7.7%, despite a high payout ratio of 421.62%.

Kinetik Holdings Inc. (NYSE:KNTK - Get Free Report) fell 3.7% on Wednesday . The stock traded as low as $41.00 and last traded at $41.15. 157,460 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 1,087,034 shares. The stock had previously closed at $42.74.

Analysts Set New Price Targets

KNTK has been the topic of several analyst reports. Mizuho set a $53.00 target price on shares of Kinetik and gave the stock an "outperform" rating in a report on Friday, August 29th. Barclays cut their target price on shares of Kinetik from $49.00 to $43.00 and set an "equal weight" rating on the stock in a report on Monday, July 14th. Citigroup restated a "buy" rating on shares of Kinetik in a report on Tuesday, June 10th. Scotiabank restated an "outperform" rating on shares of Kinetik in a report on Monday, September 8th. Finally, Zacks Research raised shares of Kinetik from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 13th. Six analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $54.67.

Kinetik Stock Performance

The firm has a market cap of $6.56 billion, a P/E ratio of 54.72, a P/E/G ratio of 1.10 and a beta of 3.16. The firm's fifty day moving average is $42.33 and its 200 day moving average is $43.84.

Kinetik (NYSE:KNTK - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $0.33 EPS 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 quarter in the prior year, the business posted $0.54 earnings per share. The firm's revenue was up 18.7% on a year-over-year basis.

Kinetik Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 1st. Investors of record on Friday, July 25th were issued a dividend of $0.78 per share. The ex-dividend date of this dividend was Friday, July 25th. This represents a $3.12 annualized dividend and a dividend yield of 7.7%. Kinetik's payout ratio is 421.62%.

Institutional Investors Weigh In On Kinetik

A number of institutional investors have recently added to or reduced their stakes in KNTK. Zimmer Partners LP bought a new stake in Kinetik during the 1st quarter worth approximately $102,124,000. RR Advisors LLC bought a new stake in shares of Kinetik in the 2nd quarter valued at $22,471,000. Adage Capital Partners GP L.L.C. bought a new stake in shares of Kinetik in the 2nd quarter valued at $22,025,000. Bank of America Corp DE boosted its stake in shares of Kinetik by 109.7% in the 2nd quarter. Bank of America Corp DE now owns 776,306 shares of the company's stock valued at $34,196,000 after purchasing an additional 406,160 shares during the last quarter. Finally, HITE Hedge Asset Management LLC bought a new stake in shares of Kinetik in the 1st quarter valued at $18,608,000. 21.11% of the stock is owned by 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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