Knife River (NYSE:KNF) Shares Gap Down on Disappointing Earnings

Key Points

• Knife River shares gapped down to $80.00 after reporting disappointing quarterly earnings, with an EPS of $0.89 falling short of the consensus estimate of $1.51.
• Despite the earnings miss, equity research analysts maintain a consensus "Buy" rating for Knife River, with price targets as high as $129.00.
• Institutional investors hold 80.11% of Knife River's stock, with significant increases in positions by firms such as JPMorgan Chase & Co. and Pictet Asset Management.

Knife River Corporation (NYSE:KNF - Get Free Report)'s share price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $84.36, but opened at $80.00. Knife River shares last traded at $79.28, with a volume of 153,151 shares.

The company reported $0.89 EPS for the quarter, missing the consensus estimate of $1.51 by ($0.62). Knife River had a net margin of 6.18% and a return on equity of 12.83%. Knife River's revenue was up 3.3% compared to the same quarter last year. During the same period in the prior year, the company posted $1.37 EPS.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. DA Davidson decreased their price objective on Knife River from $125.00 to $120.00 and set a "buy" rating for the company in a report on Tuesday, June 10th. Royal Bank Of Canada initiated coverage on Knife River in a report on Monday, June 16th. They set an "outperform" rating and a $129.00 price target for the company. Finally, Wells Fargo & Company lowered their price target on Knife River from $114.00 to $96.00 and set an "overweight" rating for the company in a research report on Tuesday, July 29th. Six equities research analysts have rated the stock with a buy rating, According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $114.17.

Institutional Investors Weigh In On Knife River

Several large investors have recently made changes to their positions in KNF. JPMorgan Chase & Co. increased its position in shares of Knife River by 18.4% during the 4th quarter. JPMorgan Chase & Co. now owns 247,541 shares of the company's stock valued at $25,160,000 after purchasing an additional 38,405 shares during the last quarter. Pictet Asset Management Holding SA grew its stake in shares of Knife River by 15.3% during the 4th quarter. Pictet Asset Management Holding SA now owns 8,268 shares of the company's stock worth $840,000 after acquiring an additional 1,097 shares during the period. Orion Portfolio Solutions LLC grew its stake in shares of Knife River by 6.5% during the 4th quarter. Orion Portfolio Solutions LLC now owns 3,670 shares of the company's stock worth $373,000 after acquiring an additional 224 shares during the period. O Shaughnessy Asset Management LLC bought a new position in shares of Knife River during the 4th quarter worth $361,000. Finally, Massachusetts Financial Services Co. MA bought a new position in shares of Knife River during the 4th quarter worth $27,745,000. 80.11% of the stock is owned by hedge funds and other institutional investors.

Knife River Price Performance

The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.49 and a current ratio of 2.94. The company has a market cap of $4.57 billion, a P/E ratio of 25.17, a P/E/G ratio of 2.27 and a beta of 0.63. The firm has a 50 day moving average price of $84.06 and a two-hundred day moving average price of $91.49.

Knife River Company Profile

Knife River Corporation, together with its subsidiaries, provides aggregates- led construction materials and contracting services in the United States. It operates through Pacific, Northwest, Mountain, Central, and Energy Services segments. The company mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete.

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