Kinetik (NYSE:KNTK) Upgraded by Wall Street Zen to "Hold" Rating

Key Points

• Wall Street Zen upgraded Kinetik from a "sell" to a "hold," and multiple analysts have raised ratings and price targets (Wells Fargo to "overweight" with $52, Citigroup "buy" $51), leaving a MarketBeat consensus of a "Moderate Buy" with a $48.08 target.
• Earnings beat: Kinetik reported $2.16 EPS for the quarter versus a $0.15 consensus and $430.42 million in revenue (up 11.5% YoY), while analysts expect about 1.01 EPS for the current fiscal year.
• Notable trading activity: Insiders sold roughly 4.17 million shares (~$187.5M) in the past three months, even as major institutions (Vanguard, Cohen & Steers, Invesco) increased stakes, with institutional ownership at about 21.11%.

Kinetik (NYSE:KNTK - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

A number of other analysts have also weighed in on the company. Wells Fargo & Company raised Kinetik from an "equal weight" rating to an "overweight" rating and increased their price objective for the company from $47.00 to $52.00 in a research note on Wednesday, March 25th. Citigroup increased their price objective on Kinetik from $46.00 to $51.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. Jefferies Financial Group reissued a "hold" rating and set a $50.00 price objective (up from $49.00) on shares of Kinetik in a research note on Wednesday, April 15th. Scotiabank increased their price objective on Kinetik from $49.00 to $51.00 and gave the company a "sector outperform" rating in a research note on Tuesday, March 17th. Finally, Barclays increased their price objective on Kinetik from $44.00 to $46.00 and gave the company an "equal weight" rating in a research note on Friday, April 10th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $48.08.

Kinetik Price Performance

NYSE KNTK opened at $47.46 on Friday. The stock has a market capitalization of $7.70 billion, a price-to-earnings ratio of 18.47, a PEG ratio of 1.52 and a beta of 0.66. The business's fifty day moving average is $46.10 and its 200-day moving average is $40.14. Kinetik has a one year low of $31.33 and a one year high of $49.55.

Kinetik (NYSE:KNTK - Get Free Report) last issued its earnings results on Thursday, February 26th. The company reported $2.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $2.01. The business had revenue of $430.42 million during the quarter. Kinetik had a negative return on equity of 32.70% and a net margin of 29.23%.The firm's quarterly revenue was up 11.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.01 EPS. Research analysts expect that Kinetik will post 1.01 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Trevor Howard sold 1,619 shares of the firm's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $46.92, for a total value of $75,963.48. Following the completion of the sale, the insider owned 249,795 shares of the company's stock, valued at $11,720,381.40. This trade represents a 0.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Isq Global Fund Ii Gp Llc sold 138,771 shares of the firm's stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $48.17, for a total value of $6,684,599.07. Following the completion of the sale, the insider directly owned 1,339,801 shares of the company's stock, valued at $64,538,214.17. The trade was a 9.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 4,167,948 shares of company stock worth $187,477,156. 3.83% of the stock is owned by company insiders.

Institutional Trading of Kinetik

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in shares of Kinetik by 9.4% during the fourth quarter. Vanguard Group Inc. now owns 5,096,786 shares of the company's stock valued at $183,739,000 after acquiring an additional 439,586 shares in the last quarter. Zimmer Partners LP bought a new stake in Kinetik in the 4th quarter worth about $98,611,000. Cohen & Steers Inc. increased its holdings in Kinetik by 82.5% in the 4th quarter. Cohen & Steers Inc. now owns 1,843,506 shares of the company's stock worth $66,458,000 after buying an additional 833,224 shares in the last quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT increased its holdings in Kinetik by 86.5% in the 4th quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,843,400 shares of the company's stock worth $66,455,000 after buying an additional 855,000 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in Kinetik by 22.4% in the 4th quarter. Invesco Ltd. now owns 1,775,216 shares of the company's stock worth $63,997,000 after buying an additional 325,251 shares in the last quarter. Hedge funds and other institutional investors 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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