Kinetik (NYSE:KNTK) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Kinetik from hold to sell, even as the broader analyst picture still shows a Moderate Buy consensus with an average target price of $48.42.
• Kinetik shares were down 2.2% and last traded at $47.41, near the upper end of their 52-week range of $31.33 to $51.11.
• The company recently reported weaker-than-expected earnings, posting -$0.07 EPS versus the $0.16 estimate, while revenue fell 7.5% year over year to $409.98 million.

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

KNTK has been the subject of a number of other reports. Zacks Research raised shares of Kinetik from a "strong sell" rating to a "hold" rating in a research note on Thursday, March 26th. Truist Financial initiated coverage on shares of Kinetik in a research note on Tuesday, March 24th. They issued a "buy" rating and a $53.00 target price for the company. Wells Fargo & Company raised shares of Kinetik from an "equal weight" rating to an "overweight" rating and boosted their target price for the stock from $47.00 to $52.00 in a research note on Wednesday, March 25th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Kinetik in a research note on Tuesday, April 21st. Finally, Scotiabank boosted their target price on shares of Kinetik from $49.00 to $51.00 and gave the stock a "sector outperform" rating in a research note on Tuesday, March 17th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $48.42.

Kinetik Trading Down 2.2%

Shares of NYSE KNTK opened at $47.41 on Friday. Kinetik has a 1-year low of $31.33 and a 1-year high of $51.11. The company has a market cap of $7.69 billion, a PE ratio of 19.35, a P/E/G ratio of 1.52 and a beta of 0.61. The company has a 50-day moving average of $46.84 and a two-hundred day moving average of $40.77.

Kinetik (NYSE:KNTK - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported ($0.07) earnings per share for the quarter, missing analysts' consensus estimates of $0.16 by ($0.23). Kinetik had a negative return on equity of 38.92% and a net margin of 28.58%.The company had revenue of $409.98 million during the quarter. During the same period in the previous year, the company posted $0.05 earnings per share. The company's revenue was down 7.5% on a year-over-year basis. As a group, equities research analysts forecast that Kinetik will post 1.02 earnings per share for the current year.

Insider Buying and Selling at Kinetik

In other news, insider Steven Stellato sold 2,907 shares of Kinetik stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $46.92, for a total transaction of $136,396.44. Following the completion of the sale, the insider owned 393,382 shares in the company, valued at $18,457,483.44. The trade was a 0.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Isq Global Fund Ii Gp Llc sold 534,564 shares of Kinetik stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $50.52, for a total transaction 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 position. The SEC filing for this sale provides additional information. Insiders have sold 5,078,855 shares of company stock worth $232,935,999 in the last 90 days. Corporate insiders own 3.56% of the company's stock.

Institutional Investors Weigh In On Kinetik

Several institutional investors have recently modified their holdings of KNTK. CWM LLC grew its holdings in Kinetik by 89.8% during the fourth quarter. CWM LLC now owns 744 shares of the company's stock valued at $27,000 after purchasing an additional 352 shares during the period. Signaturefd LLC grew its holdings in Kinetik by 101.5% during the fourth quarter. Signaturefd LLC now owns 802 shares of the company's stock valued at $29,000 after purchasing an additional 404 shares during the period. Kestra Advisory Services LLC acquired a new position in Kinetik during the fourth quarter valued at approximately $33,000. Los Angeles Capital Management LLC acquired a new position in Kinetik during the fourth quarter valued at approximately $40,000. Finally, Huntington National Bank grew its holdings in Kinetik by 139.1% during the fourth quarter. Huntington National Bank now owns 1,222 shares of the company's stock valued at $44,000 after purchasing an additional 711 shares during the period. 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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