Kodiak Gas Services (NYSE:KGS) Hits New 12-Month High - Should You Buy?

Key Points

• Kodiak Gas Services hit a new 52-week high of $62.85, after several analyst upgrades (Citigroup to $63, Goldman Sachs to $60); the consensus rating is "Moderate Buy" with an average price target of $54.57.
• The company missed quarterly EPS estimates ($0.40 vs. $0.53) despite revenue rising 7.6% year-over-year, and carries a high valuation and leverage (P/E 72.06; debt-to-equity 2.12).
• Kodiak pays a quarterly dividend of $0.49 (annualized yield ~3.1%) but has a very high dividend payout ratio of 225.29%; insiders were net sellers over the last quarter though a director purchased 5,000 shares.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $62.85 and last traded at $62.6960, with a volume of 1443753 shares traded. The stock had previously closed at $60.77.

Analysts Set New Price Targets

KGS has been the subject of several analyst reports. The Goldman Sachs Group boosted their target price on Kodiak Gas Services from $46.00 to $60.00 and gave the stock a "buy" rating in a research report on Monday, March 2nd. Citigroup boosted their target price on Kodiak Gas Services from $53.00 to $63.00 and gave the stock a "buy" rating in a research report on Monday, March 2nd. Zacks Research lowered Kodiak Gas Services from a "hold" rating to a "strong sell" rating in a research report on Tuesday, April 7th. Wall Street Zen upgraded Kodiak Gas Services from a "sell" rating to a "hold" rating in a research report on Saturday, February 21st. Finally, Mizuho boosted their price objective on Kodiak Gas Services from $36.00 to $44.00 and gave the company an "outperform" rating in a research report on Tuesday, January 20th. Seven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Kodiak Gas Services currently has an average rating of "Moderate Buy" and a consensus price target of $54.57.

Kodiak Gas Services Price Performance

The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.57 and a current ratio of 0.84. The company has a 50-day moving average of $54.79 and a 200-day moving average of $42.73. The firm has a market capitalization of $5.39 billion, a price-to-earnings ratio of 72.06 and a beta of 0.96.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last issued its quarterly earnings data on Wednesday, February 25th. The company reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.13). Kodiak Gas Services had a net margin of 6.16% and a return on equity of 11.55%. The business had revenue of $332.87 million during the quarter, compared to analyst estimates of $330.95 million. During the same quarter in the prior year, the firm posted $0.21 earnings per share. Kodiak Gas Services's revenue for the quarter was up 7.6% compared to the same quarter last year. As a group, research analysts anticipate that Kodiak Gas Services, Inc. will post 1.12 EPS for the current fiscal year.

Kodiak Gas Services Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, February 20th. Shareholders of record on Friday, February 13th were given a dividend of $0.49 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $1.96 dividend on an annualized basis and a yield of 3.1%. Kodiak Gas Services's dividend payout ratio is 225.29%.

Insider Activity

In other Kodiak Gas Services news, EVP Cory Anne Roclawski sold 21,161 shares of the company's stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $56.52, for a total transaction of $1,196,019.72. Following the completion of the transaction, the executive vice president owned 42,257 shares of the company's stock, valued at $2,388,365.64. This represents a 33.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Alexander Newsom Darden purchased 5,000 shares of Kodiak Gas Services stock in a transaction on Friday, March 13th. The shares were purchased at an average cost of $54.75 per share, with a total value of $273,750.00. Following the transaction, the director owned 5,000 shares in the company, valued at approximately $273,750. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have acquired 11,433 shares of company stock worth $624,360 and have sold 58,673 shares worth $3,269,110. Insiders own 0.64% of the company's stock.

Hedge Funds Weigh In On Kodiak Gas Services

Large investors have recently bought and sold shares of the company. Nisa Investment Advisors LLC boosted its position in Kodiak Gas Services by 52.1% during the 4th quarter. Nisa Investment Advisors LLC now owns 1,062 shares of the company's stock worth $40,000 after acquiring an additional 364 shares during the last quarter. EverSource Wealth Advisors LLC boosted its position in Kodiak Gas Services by 1,501.3% during the 2nd 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. State of Wyoming boosted its position in Kodiak Gas Services by 201.7% during the 4th 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. GAMMA Investing LLC raised its stake in shares of Kodiak Gas Services by 80.3% during the 4th quarter. GAMMA Investing LLC now owns 1,248 shares of the company's stock worth $47,000 after purchasing an additional 556 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its stake in shares of Kodiak Gas Services by 80.4% during the 3rd quarter. PNC Financial Services Group Inc. now owns 1,449 shares of the company's stock worth $54,000 after purchasing an additional 646 shares in the last quarter. Institutional investors and hedge funds own 24.95% of the company's stock.

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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