Kodiak Gas Services (NYSE:KGS) Board Authorizes Share Buyback Plan

Key Points

• Kodiak Gas Services' board has authorized a stock buyback plan for up to $50 million, representing approximately 1.8% of its outstanding shares, indicating management's confidence in the stock's value.
• The company also declared a quarterly dividend of $0.45 per share, yielding about 5.4%, despite a high dividend payout ratio of 200%.
• Kodiak Gas Services reported $0.49 earnings per share for the latest quarter, exceeding analyst expectations, and its revenue increased by 4.2% year-over-year.

Kodiak Gas Services (NYSE:KGS - Get Free Report) declared that its board has approved a stock buyback plan on Monday, August 11th, RTT News reports. The company plans to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 1.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Kodiak Gas Services Price Performance

Shares of NYSE:KGS traded up $0.71 during trading on Monday, reaching $33.18. The company had a trading volume of 1,702,386 shares, compared to its average volume of 2,013,220. Kodiak Gas Services has a twelve month low of $25.21 and a twelve month high of $50.43. The firm has a market capitalization of $2.91 billion, a PE ratio of 36.87 and a beta of 1.33. The firm's fifty day moving average is $33.22 and its 200 day moving average is $36.37. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.87 and a current ratio of 1.17.

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

Kodiak Gas Services Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 14th. Shareholders of record on Monday, August 4th will be given a dividend of $0.45 per share. 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 is 200.00%.

Wall Street Analysts Forecast Growth

KGS has been the topic of several research reports. JPMorgan Chase & Co. reiterated a "buy" rating and issued a $43.00 price target (up from $42.00) on shares of Kodiak Gas Services in a research report on Monday, June 23rd. Mizuho decreased 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. Finally, Barclays reduced their price objective on shares of Kodiak Gas Services from $41.00 to $36.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 16th. One investment analyst has rated the stock with a hold rating and ten have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $40.64.

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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