Kodiak Gas Services, Inc. (NYSE:KGS) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Kodiak Gas Services, Inc. has received a consensus rating of "Moderate Buy" from ten brokerage firms, with an average target price of $41.30.
• The company announced a $50 million share repurchase program, indicating confidence from its board regarding the stock's value.
• Kodiak reported a quarterly earnings per share of $0.49, exceeding analysts' expectations, with revenue of $322.84 million for the quarter.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) has received an average recommendation of "Moderate Buy" from the ten ratings firms that are currently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $41.30.

KGS has been the subject of a number of research analyst reports. Royal Bank Of Canada boosted their price target on Kodiak Gas Services from $42.00 to $43.00 and gave the stock an "outperform" rating in a report on Wednesday, August 13th. JPMorgan Chase & Co. reissued a "buy" rating and set a $43.00 target price (up previously from $42.00) on shares of Kodiak Gas Services in a research note on Monday, June 23rd. Mizuho increased their target price on shares of Kodiak Gas Services from $45.00 to $47.00 and gave the stock an "outperform" rating in a report on Friday, August 29th. Finally, Barclays raised their price target on shares of Kodiak Gas Services from $36.00 to $37.00 and gave the company an "equal weight" rating in a research note on Thursday, August 14th.

Kodiak Gas Services Price Performance

Shares of Kodiak Gas Services stock traded up $0.58 on Friday, reaching $33.65. 2,051,846 shares of the stock were exchanged, compared to its average volume of 1,847,115. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.78 and a current ratio of 1.10. The firm has a market cap of $2.92 billion, a PE ratio of 37.39 and a beta of 1.34. The firm's 50 day moving average is $33.49 and its 200-day moving average is $34.79. Kodiak Gas Services has a one year low of $25.87 and a one year high of $50.43.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $0.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.46 by $0.03. Kodiak Gas Services had a net margin of 6.48% and a return on equity of 10.35%. The business had revenue of $322.84 million for the quarter, compared to analysts' expectations of $335.10 million. During the same period last year, the firm posted $0.06 earnings per share. The firm's quarterly revenue was up 4.2% compared to the same quarter last year. As a group, analysts anticipate that Kodiak Gas Services will post 1.12 EPS for the current fiscal year.

Kodiak Gas Services announced that its board has authorized a stock buyback plan on Monday, August 11th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 1.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its stock is undervalued.

Kodiak Gas Services Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, August 4th were paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 5.3%. The ex-dividend date of this dividend was Monday, August 4th. Kodiak Gas Services's payout ratio is presently 200.00%.

Institutional Trading of Kodiak Gas Services

A number of hedge funds have recently made changes to their positions in KGS. Amalgamated Bank increased its stake in shares of Kodiak Gas Services by 40.0% in the first quarter. Amalgamated Bank now owns 1,554 shares of the company's stock valued at $58,000 after buying an additional 444 shares during the period. Rhumbline Advisers grew its holdings in Kodiak Gas Services by 37.3% during the 1st quarter. Rhumbline Advisers now owns 60,450 shares of the company's stock worth $2,255,000 after acquiring an additional 16,408 shares during the last quarter. GAMMA Investing LLC grew its holdings in Kodiak Gas Services by 3,401.8% during the 1st quarter. GAMMA Investing LLC now owns 24,618 shares of the company's stock worth $918,000 after acquiring an additional 23,915 shares during the last quarter. KBC Group NV acquired a new position in Kodiak Gas Services in the 1st quarter valued at approximately $116,000. Finally, Bank of New York Mellon Corp raised its stake in shares of Kodiak Gas Services by 13.4% during the first quarter. Bank of New York Mellon Corp now owns 443,666 shares of the company's stock valued at $16,549,000 after acquiring an additional 52,522 shares during the last quarter. 24.95% of the stock is owned by institutional investors and hedge funds.

Kodiak Gas Services Company Profile

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.