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

Key Points

• Analyst sentiment is positive: Twelve brokerages give Kodiak Gas Services a consensus “Moderate Buy” rating, with ten buys and two holds. The average 12-month price target is $78.89 versus a recent share price of $61.28.
• Quarterly results were mixed: Revenue rose 21.2% year over year to $391.1 million, beating estimates, but earnings per share of $0.55 fell short of the $0.67 consensus forecast.
• Investors received a quarterly dividend: Kodiak declared a $0.49-per-share dividend, equivalent to $1.96 annually and a 3.2% yield. However, the payout ratio is elevated at 233.33%, while insiders have sold roughly $1.3 million of stock over the past 90 days.

Shares of Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the twelve brokerages that are covering the stock, Marketbeat reports. Two analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $78.8889.

A number of research analysts have weighed in on the stock. Barclays decreased their target price on shares of Kodiak Gas Services from $76.00 to $72.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 8th. The Goldman Sachs Group increased their price target on Kodiak Gas Services from $69.00 to $88.00 and gave the company a "buy" rating in a report on Friday, May 15th. Citigroup increased their price target on Kodiak Gas Services from $63.00 to $86.00 and gave the company a "buy" rating in a report on Wednesday, May 13th. Stifel Nicolaus lifted their price objective on Kodiak Gas Services from $90.00 to $92.00 and gave the stock a "buy" rating in a research report on Tuesday, August 11th. Finally, Jefferies Financial Group lowered their price objective on Kodiak Gas Services from $79.00 to $69.00 and set a "buy" rating on the stock in a research note on Monday, August 10th.

Insider Activity

In other news, EVP Cory Anne Roclawski sold 4,169 shares of the business's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $68.36, for a total transaction of $284,992.84. Following the transaction, the executive vice president owned 24,662 shares of the company's stock, valued at approximately $1,685,894.32. The trade was a 14.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Pedro R. Buhigas sold 4,625 shares of the company's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $67.78, for a total transaction of $313,482.50. Following the completion of the sale, the insider directly owned 38,454 shares of the company's stock, valued at $2,606,412.12. This represents a 10.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 19,531 shares of company stock worth $1,296,158. Insiders own 0.64% of the company's stock.

Institutional Trading of Kodiak Gas Services

Several hedge funds have recently made changes to their positions in KGS. Public Employees Retirement System of Ohio purchased a new stake in shares of Kodiak Gas Services during the 2nd quarter valued at approximately $29,000. Harbor Investment Advisory LLC purchased a new position in Kodiak Gas Services in the second quarter worth approximately $76,000. Allworth Financial LP purchased a new position in Kodiak Gas Services in the second quarter worth approximately $80,000. State of Wyoming increased its stake in Kodiak Gas Services by 201.7% during the fourth quarter. State of Wyoming now owns 1,219 shares of the company's stock worth $46,000 after acquiring an additional 815 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in Kodiak Gas Services by 1,501.3% during the second 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 during the last quarter. Hedge funds and other institutional investors own 24.95% of the company's stock.

Kodiak Gas Services Stock Performance

NYSE:KGS opened at $61.28 on Friday. The company's 50-day moving average price is $65.19 and its 200-day moving average price is $62.44. The company has a current ratio of 1.45, a quick ratio of 1.15 and a debt-to-equity ratio of 1.28. The company has a market cap of $6.20 billion, a P/E ratio of 72.95, a P/E/G ratio of 0.88 and a beta of 0.97. Kodiak Gas Services has a twelve month low of $32.55 and a twelve month high of $77.68.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.55 earnings per share for the quarter, missing analysts' consensus estimates of $0.67 by ($0.12). Kodiak Gas Services had a return on equity of 11.92% and a net margin of 5.77%.The business had revenue of $391.12 million for the quarter, compared to analyst estimates of $386.30 million. During the same quarter in the previous year, the firm posted $0.43 earnings per share. The business's revenue was up 21.2% compared to the same quarter last year. On average, sell-side analysts forecast that Kodiak Gas Services will post 2.46 earnings per share for the current fiscal year.

Kodiak Gas Services Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Monday, August 17th will be issued a dividend of $0.49 per share. This represents a $1.96 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Monday, August 17th. Kodiak Gas Services's payout ratio is currently 233.33%.

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. 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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