Kodiak Gas Services (NYSE:KGS) Downgraded to Hold Rating by 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 research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Several other analysts also recently commented on KGS. Royal Bank Of Canada increased their price objective on shares of Kodiak Gas Services from $42.00 to $43.00 and gave the company an "outperform" rating in a research report on Wednesday, August 13th. Mizuho increased their price objective on shares of Kodiak Gas Services from $45.00 to $47.00 and gave the company an "outperform" rating in a research report on Friday, August 29th. JPMorgan Chase & Co. reissued a "buy" rating and set a $43.00 price objective (up from $42.00) on shares of Kodiak Gas Services in a research report on Monday, June 23rd. Finally, Barclays increased their price objective 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, August 14th. Nine analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $41.30.

Kodiak Gas Services Stock Down 1.4%

Shares of NYSE:KGS traded down $0.47 during midday trading on Wednesday, reaching $33.24. The company's stock had a trading volume of 2,023,430 shares, compared to its average volume of 1,904,349. The firm has a 50 day moving average of $33.48 and a 200-day moving average of $34.62. The firm has a market capitalization of $2.88 billion, a P/E ratio of 36.94 and a beta of 1.34. The company has a quick ratio of 0.78, a current ratio of 1.10 and a debt-to-equity ratio of 1.89. Kodiak Gas Services has a 12-month low of $26.12 and a 12-month high of $50.43.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates of $0.46 by $0.03. The firm 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%. The company's revenue was up 4.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.06 EPS. On average, research analysts anticipate that Kodiak Gas Services will post 1.12 earnings per share for the current year.

Kodiak Gas Services announced that its Board of Directors has approved a share repurchase program on Monday, August 11th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 1.8% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Kodiak Gas Services

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Invesco Ltd. boosted its holdings in shares of Kodiak Gas Services by 59.9% in the second quarter. Invesco Ltd. now owns 4,869,346 shares of the company's stock worth $166,872,000 after buying an additional 1,824,407 shares during the last quarter. Zimmer Partners LP grew its holdings in Kodiak Gas Services by 14.2% during the first quarter. Zimmer Partners LP now owns 3,824,063 shares of the company's stock valued at $142,638,000 after purchasing an additional 476,363 shares during the period. Vanguard Group Inc. grew its holdings in Kodiak Gas Services by 9.0% during the first quarter. Vanguard Group Inc. now owns 2,897,588 shares of the company's stock valued at $108,080,000 after purchasing an additional 238,573 shares during the period. Goldman Sachs Group Inc. increased its position in Kodiak Gas Services by 58.3% in the first quarter. Goldman Sachs Group Inc. now owns 1,983,360 shares of the company's stock worth $73,979,000 after buying an additional 730,180 shares in the last quarter. Finally, American Century Companies Inc. raised its stake in shares of Kodiak Gas Services by 24.6% in the second quarter. American Century Companies Inc. now owns 1,622,102 shares of the company's stock worth $55,589,000 after buying an additional 320,022 shares during the period. Hedge funds and other institutional investors own 24.95% of the company's stock.

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.