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

Key Points

• Kodiak Gas Services, Inc. has received a consensus recommendation of "Moderate Buy" from 11 analysts, with 10 analysts recommending a buy and one a hold.
• The company recently reported earnings of $0.49 EPS, surpassing expectations, with revenue totaling $322.84 million for the quarter.
• A quarterly dividend of $0.45 will be paid on August 14th, yielding 5.4%, while the company also initiated a $50 million stock repurchase program.

Shares of Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the eleven analysts that are currently covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a hold recommendation and ten have given a buy recommendation to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $40.6364.

Several research firms have recently commented on KGS. Mizuho cut their price target on Kodiak Gas Services from $46.00 to $45.00 and set an "outperform" rating for the company in a research note on Tuesday, May 20th. Barclays cut their price target on Kodiak Gas Services from $41.00 to $36.00 and set an "equal weight" rating for the company in a research note on Wednesday, April 16th. Finally, JPMorgan Chase & Co. reissued a "buy" rating and set a $43.00 target price (up from $42.00) on shares of Kodiak Gas Services in a research note on Monday, June 23rd.

Kodiak Gas Services Trading Up 2.2%

NYSE:KGS opened at $33.18 on Tuesday. Kodiak Gas Services has a 12-month low of $25.21 and a 12-month high of $50.43. The company has a current ratio of 1.17, a quick ratio of 0.87 and a debt-to-equity ratio of 1.91. The stock's 50 day simple moving average is $33.22 and its 200-day simple moving average is $36.37. The firm has a market cap of $2.91 billion, a P/E ratio of 36.87 and a beta of 1.33.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported $0.49 EPS for the quarter, topping the consensus estimate of $0.46 by $0.03. Kodiak Gas Services had a return on equity of 10.30% and a net margin of 6.48%. The business had revenue of $322.84 million during the quarter, compared to analysts' expectations of $335.10 million. During the same quarter in the prior year, the business earned $0.06 earnings per share. The company's quarterly revenue was up 4.2% compared to the same quarter last year. Equities analysts anticipate that Kodiak Gas Services will post 1.12 EPS for the current year.

Kodiak Gas Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 14th. Investors of record on Monday, August 4th will be paid a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 5.4%. The ex-dividend date of this dividend is Monday, August 4th. Kodiak Gas Services's dividend payout ratio (DPR) is presently 200.00%.

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

Hedge Funds Weigh In On Kodiak Gas Services

Several hedge funds and other institutional investors have recently bought and sold shares of KGS. Geode Capital Management LLC raised its holdings in Kodiak Gas Services by 51.0% during the fourth quarter. Geode Capital Management LLC now owns 827,274 shares of the company's stock worth $33,786,000 after purchasing an additional 279,459 shares during the last quarter. Wells Fargo & Company MN raised its holdings in Kodiak Gas Services by 102.3% during the fourth quarter. Wells Fargo & Company MN now owns 19,035 shares of the company's stock worth $777,000 after purchasing an additional 9,624 shares during the last quarter. Legal & General Group Plc raised its holdings in Kodiak Gas Services by 7.2% during the fourth quarter. Legal & General Group Plc now owns 30,251 shares of the company's stock worth $1,235,000 after purchasing an additional 2,034 shares during the last quarter. Raymond James Financial Inc. acquired a new position in Kodiak Gas Services during the fourth quarter worth $276,000. Finally, Capital Fund Management S.A. acquired a new position in Kodiak Gas Services during the fourth quarter worth $754,000. 24.95% of the stock is owned by institutional investors and hedge funds.

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.

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