Kodiak Gas Services (NYSE:KGS) Board of Directors Initiates Stock 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 of Directors has authorized a stock repurchase plan on Monday, August 11th, RTT News reports. The company plans to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to buy up to 1.8% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its stock is undervalued.

Kodiak Gas Services Stock Down 1.8%

Shares of KGS traded down $0.62 during mid-day trading on Friday, hitting $34.50. 74,415 shares of the company's stock were exchanged, compared to its average volume of 1,211,445. The company has a market cap of $3.03 billion, a price-to-earnings ratio of 38.35 and a beta of 1.33. Kodiak Gas Services has a fifty-two week low of $25.21 and a fifty-two week high of $50.43. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.87 and a current ratio of 1.10. The stock's 50-day moving average is $33.13 and its 200-day moving average is $36.28.

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 (EPS) 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 for the quarter, compared to analysts' expectations of $335.10 million. During the same quarter in the prior year, the company earned $0.06 earnings per share. The business's quarterly revenue was up 4.2% on a year-over-year basis. On average, sell-side analysts anticipate that Kodiak Gas Services will post 1.12 earnings per share for the current fiscal year.

Kodiak Gas Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Investors of record on Monday, August 4th were paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 5.2%. The ex-dividend date was Monday, August 4th. Kodiak Gas Services's dividend payout ratio is presently 200.00%.

Analyst Ratings Changes

Several research analysts have recently weighed in on KGS shares. JPMorgan Chase & Co. reissued a "buy" rating and set a $43.00 price target (up previously from $42.00) on shares of Kodiak Gas Services in a research report on Monday, June 23rd. Barclays boosted their price target on shares of Kodiak Gas Services from $36.00 to $37.00 and gave the company an "equal weight" rating in a research report on Thursday. Royal Bank Of Canada set a $43.00 target price on shares of Kodiak Gas Services and gave the company an "outperform" rating in a research report on Wednesday. Finally, Mizuho decreased their target price on shares of Kodiak Gas Services from $46.00 to $45.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 20th. One investment analyst has rated the stock with a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $41.10.

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.