Kodiak Gas Services, Inc. (NYSE:KGS) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Kodiak Gas Services has an average analyst rating of “Moderate Buy”, with 9 of 11 brokerages recommending buy and an average 12-month price target of about $75.22.
• The company recently beat quarterly expectations, reporting EPS of $0.59 versus $0.54 expected and revenue of $345.76 million versus $340.23 million expected.
• Kodiak Gas Services also declared a quarterly dividend of $0.49 per share, equal to an annualized yield of about 3.0%, though the payout ratio is high at 264.86%.

Shares of Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the eleven brokerages that are presently covering the firm, Marketbeat reports. Two analysts have rated the stock with a hold rating and nine have given a buy rating to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $75.2222.

KGS has been the topic of a number of analyst reports. Wall Street Zen upgraded Kodiak Gas Services from a "sell" rating to a "hold" rating in a report on Saturday, February 21st. Barclays increased their price objective on Kodiak Gas Services from $60.00 to $76.00 and gave the company an "overweight" rating in a report on Thursday, May 21st. Stifel Nicolaus set a $84.00 price objective on Kodiak Gas Services in a report on Tuesday, May 12th. Jefferies Financial Group assumed coverage on Kodiak Gas Services in a research report on Thursday. They set a "buy" rating and a $79.00 target price on the stock. Finally, Zacks Research raised Kodiak Gas Services from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 6th.

Kodiak Gas Services Price Performance

Shares of KGS stock opened at $65.06 on Monday. Kodiak Gas Services has a 52-week low of $30.06 and a 52-week high of $77.68. The company has a debt-to-equity ratio of 2.38, a quick ratio of 0.99 and a current ratio of 1.28. The firm has a market capitalization of $5.78 billion, a P/E ratio of 87.91, a P/E/G ratio of 0.91 and a beta of 0.94. The stock has a 50 day moving average price of $66.41 and a 200 day moving average price of $51.56.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last issued its earnings results on Monday, May 11th. The company reported $0.59 earnings per share for the quarter, beating analysts' consensus estimates of $0.54 by $0.05. The business had revenue of $345.76 million during the quarter, compared to analyst estimates of $340.23 million. Kodiak Gas Services had a return on equity of 13.12% and a net margin of 5.13%.Kodiak Gas Services's revenue was up 4.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.33 EPS. As a group, sell-side analysts predict that Kodiak Gas Services will post 2.35 earnings per share for the current year.

Kodiak Gas Services Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Monday, May 18th were issued a $0.49 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.96 dividend on an annualized basis and a dividend yield of 3.0%. Kodiak Gas Services's dividend payout ratio is currently 264.86%.

Insiders Place Their Bets

In other news, CAO Ewan William Hamilton sold 5,797 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $56.18, for a total value of $325,675.46. Following the transaction, the chief accounting officer directly owned 34,346 shares of the company's stock, valued at approximately $1,929,558.28. This represents a 14.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Alexander Newsom Darden acquired 5,000 shares of the business's stock in a transaction dated Friday, March 13th. The stock was purchased at an average cost of $54.75 per share, for a total transaction of $273,750.00. Following the completion of the acquisition, the director directly owned 5,000 shares of the company's stock, valued at approximately $273,750. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders sold 58,673 shares of company stock valued at $3,269,110. Insiders own 0.64% of the company's stock.

Hedge Funds Weigh In On Kodiak Gas Services

A number of hedge funds have recently bought and sold shares of KGS. Vanguard Group Inc. boosted its position in Kodiak Gas Services by 33.8% during the fourth quarter. Vanguard Group Inc. now owns 6,170,360 shares of the company's stock worth $230,771,000 after purchasing an additional 1,559,172 shares in the last quarter. Invesco Ltd. boosted its position in Kodiak Gas Services by 29.5% during the third quarter. Invesco Ltd. now owns 6,305,789 shares of the company's stock worth $233,125,000 after purchasing an additional 1,436,443 shares in the last quarter. CIBC Private Wealth Group LLC boosted its position in Kodiak Gas Services by 3,046.3% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,471,663 shares of the company's stock worth $55,040,000 after purchasing an additional 1,424,888 shares in the last quarter. Zimmer Partners LP boosted its position in Kodiak Gas Services by 45.7% during the fourth quarter. Zimmer Partners LP now owns 4,271,553 shares of the company's stock worth $159,756,000 after purchasing an additional 1,339,849 shares in the last quarter. Finally, Eagle Global Advisors LLC purchased a new position in Kodiak Gas Services during the fourth quarter worth approximately $39,741,000. Hedge funds and other institutional investors own 24.95% of the company's stock.

About Kodiak Gas Services

Kodiak Gas Services, Inc operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings.

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