Kodiak Gas Services (NYSE:KGS) Now Covered by Jefferies Financial Group

Key Points

• Jefferies initiated coverage on Kodiak Gas Services with a buy rating and a $79 price target, implying about 17% upside from the prior close.
• The stock has broad analyst support, with nine Buy ratings and two Hold ratings, and a consensus target price of $75.22. Other firms including Goldman Sachs, Barclays, and Wells Fargo have also recently raised targets or started coverage.
• Kodiak Gas Services reported better-than-expected quarterly results, with EPS of $0.59 versus $0.54 expected and revenue of $345.76 million above estimates. The company also noted insider trading activity and increased institutional ownership.

Research analysts at Jefferies Financial Group assumed coverage on shares of Kodiak Gas Services (NYSE:KGS - Get Free Report) in a research note issued on Thursday. The firm set a "buy" rating and a $79.00 price target on the stock. Jefferies Financial Group's price target would indicate a potential upside of 17.17% from the company's previous close.

Several other equities analysts have also issued reports on the company. The Goldman Sachs Group boosted their target price on Kodiak Gas Services from $69.00 to $88.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Barclays upped their price target on Kodiak Gas Services from $60.00 to $76.00 and gave the company an "overweight" rating in a research note on Thursday, May 21st. Wells Fargo & Company began coverage on shares of Kodiak Gas Services in a research note on Wednesday, May 27th. They set an "overweight" rating and a $93.00 price objective on the stock. Stifel Nicolaus set a $84.00 price objective on shares of Kodiak Gas Services in a report on Tuesday, May 12th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Kodiak Gas Services in a research note on Friday, May 29th. Nine research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $75.22.

Kodiak Gas Services Stock Up 0.3%

Shares of NYSE KGS opened at $67.42 on Thursday. Kodiak Gas Services has a 52-week low of $30.06 and a 52-week high of $77.68. The stock has a market cap of $5.98 billion, a PE ratio of 91.11, a PEG ratio of 0.94 and a beta of 0.94. The business has a fifty day moving average of $66.11 and a two-hundred day moving average of $51.09. The company has a debt-to-equity ratio of 2.38, a quick ratio of 0.99 and a current ratio of 1.28.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last announced its earnings results on Monday, May 11th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.54 by $0.05. The company had revenue of $345.76 million for the quarter, compared to analysts' expectations of $340.23 million. Kodiak Gas Services had a return on equity of 13.12% and a net margin of 5.13%.The business's revenue for the quarter was up 4.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.33 earnings per share. As a group, equities research analysts expect that Kodiak Gas Services will post 2.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Kodiak Gas Services news, CAO Ewan William Hamilton sold 5,797 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $56.18, for a total transaction of $325,675.46. Following the completion of the sale, the chief accounting officer directly owned 34,346 shares in the company, valued at $1,929,558.28. This trade represents a 14.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Randall J. Hogan acquired 6,000 shares of the stock in a transaction on Friday, March 13th. The shares were purchased at an average price of $54.81 per share, for a total transaction of $328,860.00. Following the transaction, the director directly owned 28,406 shares in the company, valued at approximately $1,556,932.86. This trade represents a 26.78% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have sold 58,673 shares of company stock worth $3,269,110. Corporate insiders own 0.64% of the company's stock.

Hedge Funds Weigh In On Kodiak Gas Services

Several institutional investors and hedge funds have recently modified their holdings of KGS. Royal Bank of Canada raised its stake in Kodiak Gas Services by 67.5% in the 1st quarter. Royal Bank of Canada now owns 10,235 shares of the company's stock worth $382,000 after purchasing an additional 4,126 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of Kodiak Gas Services by 64.9% during the first quarter. AQR Capital Management LLC now owns 21,261 shares of the company's stock worth $793,000 after purchasing an additional 8,369 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Kodiak Gas Services by 44.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,814 shares of the company's stock valued at $1,000,000 after buying an additional 8,297 shares in the last quarter. Goldman Sachs Group Inc. raised its position in shares of 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 valued at $73,979,000 after buying an additional 730,180 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Kodiak Gas Services by 102.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 95,108 shares of the company's stock valued at $3,548,000 after buying an additional 48,122 shares during the period. 24.95% of the stock is currently owned by institutional investors and hedge funds.

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. 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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