Kodiak Gas Services (NYSE:KGS) Cut to "Hold" at Zacks Research

Key Points

• Kodiak Gas Services has been downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating amidst mixed analyst opinions on its stock price, with several firms maintaining or increasing their price targets.
• The company reported earnings of $0.49 per share for the last quarter, exceeding analyst expectations, but its revenue fell short of estimates, recorded at $322.84 million.
• Kodiak Gas Services has approved a $50 million stock buyback program, indicating the management's belief that its shares are undervalued.

Kodiak Gas Services (NYSE:KGS - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Wednesday, September 10th,Zacks.com reports.

A number of other research firms have also issued reports on KGS. JPMorgan Chase & Co. reissued a "buy" rating and issued a $43.00 target price (up previously from $42.00) on shares of Kodiak Gas Services in a report on Monday, June 23rd. Barclays boosted their price target on Kodiak Gas Services from $36.00 to $37.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 14th. Mizuho raised their target price on shares of Kodiak Gas Services from $45.00 to $47.00 and gave the company an "outperform" rating in a report on Friday, August 29th. Finally, Royal Bank Of Canada boosted their price target on Kodiak Gas Services from $42.00 to $43.00 and gave the stock an "outperform" rating in a report on Wednesday, August 13th. Nine research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $41.30.

Kodiak Gas Services Stock Performance

Shares of Kodiak Gas Services stock traded up $0.05 during trading on Wednesday, reaching $33.12. The company's stock had a trading volume of 210,379 shares, compared to its average volume of 1,300,505. The company has a 50-day moving average price of $33.50 and a two-hundred day moving average price of $34.54. Kodiak Gas Services has a fifty-two week low of $28.14 and a fifty-two week high of $50.43. The firm has a market cap of $2.87 billion, a PE ratio of 36.80 and a beta of 1.34. The company has a current ratio of 1.10, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last issued its quarterly earnings data 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. The company had revenue of $322.84 million for 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 10.35%. Kodiak Gas Services's revenue for the quarter was up 4.2% on a year-over-year basis. During the same period last year, the firm posted $0.06 EPS. On average, analysts forecast that Kodiak Gas Services will post 1.12 EPS for the current year.

Kodiak Gas Services announced that its board has approved a share repurchase plan 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 plans are typically a sign that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Kodiak Gas Services

Hedge funds and other institutional investors have recently made changes to their positions in the company. Allworth Financial LP raised its stake in shares of Kodiak Gas Services by 1,850.0% in the 2nd quarter. Allworth Financial LP now owns 741 shares of the company's stock valued at $25,000 after acquiring an additional 703 shares in the last quarter. Comerica Bank lifted its position in shares of Kodiak Gas Services by 710.1% during the 4th quarter. Comerica Bank now owns 721 shares of the company's stock worth $29,000 after buying an additional 632 shares during the period. Quarry LP bought a new position in Kodiak Gas Services during the 1st quarter valued at about $30,000. BI Asset Management Fondsmaeglerselskab A S bought a new position in shares of Kodiak Gas Services in the first quarter worth about $37,000. Finally, EverSource Wealth Advisors LLC raised its position in shares of Kodiak Gas Services by 1,501.3% during the second 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. 24.95% of the stock is owned by hedge funds and other institutional investors.

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.