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

Key Points

• Wall Street Zen downgraded Kinetik from “sell” to “strong sell,” even as the broader analyst view remains a “Moderate Buy” with an average price target of $48.92.
• Kinetik reported weaker-than-expected earnings for the latest quarter, posting EPS of -$0.07 versus the $0.16 consensus, while revenue fell 7.5% year over year to $409.98 million.
• Insiders have been selling shares, with total insider sales of 5.08 million shares worth about $232.9 million over the past 90 days, though institutional ownership remains significant at 21.11%.

Kinetik (NYSE:KNTK - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research report issued on Sunday.

A number of other research firms have also issued reports on KNTK. UBS Group lowered their target price on shares of Kinetik from $49.00 to $48.00 and set a "neutral" rating on the stock in a research note on Monday, March 16th. Weiss Ratings downgraded shares of Kinetik from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, May 11th. Jefferies Financial Group restated a "hold" rating and set a $51.00 price objective on shares of Kinetik in a report on Friday, May 8th. Royal Bank Of Canada restated an "outperform" rating and set a $50.00 price objective (up from $49.00) on shares of Kinetik in a report on Thursday, April 16th. Finally, Truist Financial initiated coverage on shares of Kinetik in a report on Tuesday, March 24th. They set a "buy" rating and a $53.00 price objective on the stock. One investment 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 stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $48.92.

Kinetik Stock Performance

Shares of KNTK stock opened at $51.29 on Friday. Kinetik has a one year low of $31.33 and a one year high of $51.51. The company's 50-day simple moving average is $47.27 and its 200-day simple moving average is $41.21. The stock has a market capitalization of $8.33 billion, a price-to-earnings ratio of 20.93, a PEG ratio of 1.95 and a beta of 0.61.

Kinetik (NYSE:KNTK - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.16 by ($0.23). Kinetik had a net margin of 28.58% and a negative return on equity of 36.36%. The firm had revenue of $409.98 million during the quarter. During the same quarter in the previous year, the firm earned $0.05 EPS. The company's revenue was down 7.5% compared to the same quarter last year. As a group, research analysts forecast that Kinetik will post 0.84 EPS 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 dated Wednesday, March 4th. The shares were sold at an average price of $46.92, for a total transaction of $136,396.44. Following the sale, the insider directly owned 393,382 shares in the company, valued at approximately $18,457,483.44. The trade was a 0.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Matthew Wall sold 3,222 shares of Kinetik stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $46.92, for a total transaction of $151,176.24. Following the sale, the insider owned 585,556 shares in the company, valued at approximately $27,474,287.52. This trade represents a 0.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 5,078,855 shares of company stock valued at $232,935,999 in the last 90 days. Insiders own 3.56% of the company's stock.

Hedge Funds Weigh In On Kinetik

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Comerica Bank boosted its position in Kinetik by 91.5% in the first quarter. Comerica Bank now owns 1,532 shares of the company's stock valued at $80,000 after buying an additional 732 shares in the last quarter. AQR Capital Management LLC boosted its position in Kinetik by 4.2% in the first quarter. AQR Capital Management LLC now owns 12,900 shares of the company's stock valued at $670,000 after buying an additional 522 shares in the last quarter. Millennium Management LLC boosted its position in Kinetik by 88.7% in the first quarter. Millennium Management LLC now owns 132,533 shares of the company's stock valued at $6,884,000 after buying an additional 62,306 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Kinetik by 27.3% in 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 buying an additional 17,034 shares in the last quarter. Finally, Intech Investment Management LLC boosted its position in Kinetik by 14.3% in the first quarter. Intech Investment Management LLC now owns 22,114 shares of the company's stock valued at $1,149,000 after buying an additional 2,766 shares in the last quarter. 21.11% of the stock is currently owned by institutional investors and hedge funds.

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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