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

Key Points

• Kodiak Gas Services, Inc. has received an average analyst rating of "Buy", with most analysts recommending purchasing the stock, while the average 12-month price target is set at $43.25.
• The company recently increased its quarterly dividend to $0.49 per share, reflecting a 5.5% yield, while also initiating a stock repurchase program worth $50 million.
• Kodiak Gas Services reported earnings of $0.49 per share, exceeding estimates, with a quarterly revenue increase of 4.2% year-over-year, although it fell slightly short of expectations.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) has been assigned an average rating of "Buy" from the ten analysts that are currently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a hold recommendation, eight have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $43.25.

Several research analysts recently issued reports on the stock. Barclays cut their price target on shares of Kodiak Gas Services from $37.00 to $35.00 and set an "equal weight" rating for the company in a report on Tuesday, October 14th. Zacks Research raised shares of Kodiak Gas Services from a "hold" rating to a "strong-buy" rating in a report on Tuesday, October 14th. Royal Bank Of Canada increased their price target on shares of Kodiak Gas Services from $42.00 to $43.00 and gave the stock an "outperform" rating in a report on Wednesday, August 13th. Weiss Ratings reissued a "buy (b-)" rating on shares of Kodiak Gas Services in a report on Saturday. Finally, Mizuho increased their price target 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.

Kodiak Gas Services Stock Up 1.5%

KGS stock opened at $35.80 on Friday. Kodiak Gas Services has a one year low of $29.25 and a one year high of $50.43. The firm has a market cap of $3.10 billion, a PE ratio of 39.77 and a beta of 1.32. The firm's 50 day moving average price is $34.99 and its 200-day moving average price is $34.27. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.78 and a current ratio of 1.10.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $0.49 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $335.10 million. During the same quarter in the prior year, the firm earned $0.06 earnings per share. The business's quarterly revenue was up 4.2% compared to the same quarter last year. On average, equities research analysts anticipate that Kodiak Gas Services will post 1.12 EPS for the current year.

Kodiak Gas Services Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 13th. Investors of record on Monday, November 3rd will be issued a dividend of $0.49 per share. This is an increase from Kodiak Gas Services's previous quarterly dividend of $0.45. This represents a $1.96 annualized dividend and a yield of 5.5%. The ex-dividend date of this dividend is Monday, November 3rd. Kodiak Gas Services's dividend payout ratio is currently 200.00%.

Kodiak Gas Services declared that its board 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 a sign that the company's leadership believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in KGS. KBC Group NV purchased a new position in Kodiak Gas Services in the first quarter valued at about $116,000. Amalgamated Bank increased its holdings in 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 in the last quarter. Teacher Retirement System of Texas purchased a new position in Kodiak Gas Services in the first quarter valued at about $19,784,000. Principal Financial Group Inc. grew its position in shares of Kodiak Gas Services by 13.5% in the first quarter. Principal Financial Group Inc. now owns 27,246 shares of the company's stock valued at $1,016,000 after purchasing an additional 3,233 shares during the last quarter. Finally, Bank of New York Mellon Corp grew its position in shares of Kodiak Gas Services by 13.4% in 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 purchasing an additional 52,522 shares during the last quarter. 24.95% of the stock is owned by hedge funds and other institutional investors.

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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