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

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.

Shares of Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) have received a consensus rating of "Moderate Buy" from the ten ratings firms that are covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a hold recommendation and nine have issued a buy recommendation on the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $41.30.

A number of equities analysts have weighed in on the company. Mizuho lifted their price objective on Kodiak Gas Services from $45.00 to $47.00 and gave the company an "outperform" rating in a research note on Friday, August 29th. JPMorgan Chase & Co. reaffirmed a "buy" rating and set a $43.00 target price (up from $42.00) on shares of Kodiak Gas Services in a report on Monday, June 23rd. Barclays boosted their price target on Kodiak Gas Services from $36.00 to $37.00 and gave the company an "equal weight" rating in a report on Thursday, August 14th. Finally, Royal Bank Of Canada lifted their target price on shares of Kodiak Gas Services from $42.00 to $43.00 and gave the company an "outperform" rating in a report on Wednesday, August 13th.

Kodiak Gas Services Stock Performance

Shares of NYSE KGS opened at $35.34 on Friday. The company has a 50 day simple moving average of $33.52 and a two-hundred day simple moving average of $35.09. The stock has a market cap of $3.10 billion, a price-to-earnings ratio of 39.26 and a beta of 1.34. The company has a current ratio of 1.10, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89. Kodiak Gas Services has a 12 month low of $25.21 and a 12 month high of $50.43.

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

Kodiak Gas Services declared that its Board of Directors has authorized a share repurchase program on Monday, August 11th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the company to buy up to 1.8% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Kodiak Gas Services Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, August 4th were issued a $0.45 dividend. The ex-dividend date of this dividend was Monday, August 4th. This represents a $1.80 dividend on an annualized basis and a yield of 5.1%. Kodiak Gas Services's payout ratio is presently 200.00%.

Hedge Funds Weigh In On Kodiak Gas Services

Several institutional investors and hedge funds have recently modified their holdings of KGS. Allworth Financial LP boosted its position in Kodiak Gas Services by 1,850.0% during the second quarter. Allworth Financial LP now owns 741 shares of the company's stock worth $25,000 after purchasing an additional 703 shares in the last quarter. Comerica Bank raised its stake in shares of Kodiak Gas Services by 710.1% during the 4th quarter. Comerica Bank now owns 721 shares of the company's stock worth $29,000 after buying an additional 632 shares during the period. Quarry LP purchased a new position in shares of Kodiak Gas Services during the 1st quarter valued at approximately $30,000. BI Asset Management Fondsmaeglerselskab A S acquired a new stake in Kodiak Gas Services in the 1st quarter valued at $37,000. Finally, EverSource Wealth Advisors LLC increased its holdings in Kodiak Gas Services by 1,501.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,233 shares of the company's stock worth $42,000 after acquiring an additional 1,156 shares in the last quarter. Hedge funds and other institutional investors own 24.95% of the company's stock.

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.

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