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

Key Points

• Wall Street Zen upgraded Kinetik from “strong sell” to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $52.07.
• Kinetik’s second-quarter results significantly exceeded expectations: earnings were $0.64 per share versus $0.19 expected, and revenue increased 36.3% year over year to $581.4 million.
• Shares were trading near their 52-week high at $49.08, while major shareholder ISQ Global Fund II sold about $13.3 million of stock over the quarter, potentially creating a short-term overhang.

Kinetik (NYSE:KNTK - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "strong sell" rating to a "hold" rating in a report released on Saturday.

A number of other equities analysts have also recently weighed in on KNTK. Tudor Pickering assumed coverage on shares of Kinetik in a research report on Monday, July 20th. They set a "buy" rating and a $57.00 price objective for the company. Jefferies Financial Group restated a "hold" rating and set a $51.00 price target on shares of Kinetik in a research note on Friday, May 8th. Barclays set a $51.00 price target on Kinetik and gave the stock an "equal weight" rating in a research report on Thursday. JPMorgan Chase & Co. lifted their price objective on Kinetik from $54.00 to $57.00 and gave the company an "overweight" rating in a research note on Tuesday, July 14th. Finally, US Capital Advisors upgraded Kinetik from a "moderate buy" rating to a "strong-buy" rating in a report on Friday, May 29th. Three analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $52.07.

Kinetik Price Performance

NYSE KNTK opened at $49.08 on Friday. The firm's 50-day moving average is $48.31 and its two-hundred day moving average is $46.59. Kinetik has a 12 month low of $31.33 and a 12 month high of $52.54. The stock has a market capitalization of $7.97 billion, a P/E ratio of 17.78, a PEG ratio of 1.98 and a beta of 0.56.

Kinetik (NYSE:KNTK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.64 earnings per share for the quarter, beating analysts' consensus estimates of $0.19 by $0.45. The business had revenue of $581.44 million during the quarter, compared to analysts' expectations of $421.48 million. Kinetik had a net margin of 26.19% and a negative return on equity of 37.86%. The business's revenue for the quarter was up 36.3% on a year-over-year basis. During the same period last year, the business earned $0.33 earnings per share. As a group, analysts anticipate that Kinetik will post 0.81 EPS for the current year.

Insiders Place Their Bets

In other Kinetik news, major shareholder Isq Global Fund Ii Gp Llc sold 26,550 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $50.24, for a total transaction of $1,333,872.00. Following the sale, the insider directly owned 1,664,820 shares in the company, valued at $83,640,556.80. This represents a 1.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Over the last quarter, insiders have sold 264,074 shares of company stock worth $13,332,540. 3.56% of the stock is owned by corporate insiders.

Institutional Trading of Kinetik

Large investors have recently modified their holdings of the stock. CWM LLC raised its stake in shares of Kinetik by 89.8% in the fourth quarter. CWM LLC now owns 744 shares of the company's stock valued at $27,000 after acquiring an additional 352 shares in the last quarter. Signaturefd LLC grew its stake in Kinetik by 101.5% during the 4th quarter. Signaturefd LLC now owns 802 shares of the company's stock worth $29,000 after purchasing an additional 404 shares in the last quarter. Kestra Advisory Services LLC acquired a new position in Kinetik during the 4th quarter worth $33,000. Los Angeles Capital Management LLC purchased a new stake in Kinetik during the 4th quarter worth about $40,000. Finally, Huntington National Bank increased its holdings in Kinetik by 139.1% during the 4th quarter. Huntington National Bank now owns 1,222 shares of the company's stock worth $44,000 after purchasing an additional 711 shares during the period. Hedge funds and other institutional investors own 21.11% of the company's stock.

Key Stories Impacting Kinetik

Here are the key news stories impacting Kinetik this week:

• Positive Sentiment: Kinetik reported second-quarter earnings of $0.64 per share, far above the $0.19 analyst consensus and up from $0.33 a year earlier. Revenue rose 36.3% year over year to $581.4 million, also exceeding expectations. Kinetik Holdings Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management’s results and commentary highlighted strong NGL recoveries, downstream optimization and dividend coverage. Planned projects—including Kings Landing II, the ECCC Pipeline and expanded Gulf Coast access—could support multiyear EBITDA growth by allowing Kinetik to monetize capacity constraints in the Permian Basin. Kinetik Holdings Monetizing the Permian’s Constraints
• Neutral Sentiment: The earnings improvement strengthens Kinetik’s fundamental outlook, but one analysis argued that the stock is still not inexpensive. Shares trade near their 52-week high, with a P/E ratio around 17, potentially limiting near-term upside unless growth continues to exceed expectations. Kinetik Better Q2 Earnings, Still Not Cheap
• Negative Sentiment: Major shareholder ISQ Global Fund II GP LLC disclosed sales totaling approximately $13.3 million across August 3, 6 and 7. The transactions reduced its reported holdings, with the largest sale involving 235,349 shares. While the sales do not change Kinetik’s operations, they may create an overhang and raise short-term concerns about insider conviction. SEC Form 4 Insider Sale Filing

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source