Kodiak Gas Services (NYSE:KGS) Raised to Strong-Buy at Piper Sandler

Key Points

• Piper Sandler upgraded Kodiak Gas Services to “strong buy.” Analysts overall give the stock a “Moderate Buy” consensus rating, with an average price target of $79.33.
• Kodiak reported quarterly EPS of $0.59, beating estimates of $0.54, while revenue rose 4.9% year over year to $345.76 million.
• Institutional investors increased their holdings, with Vanguard, Invesco, Zimmer Partners and State Street among those adding shares; however, company insiders sold 13,523 shares worth about $921,319 over the past 90 days.

Kodiak Gas Services (NYSE:KGS - Get Free Report) was upgraded by research analysts at Piper Sandler to a "strong-buy" rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other research analysts have also issued reports on KGS. 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 target on the stock. Royal Bank Of Canada boosted their target price on Kodiak Gas Services from $64.00 to $84.00 and gave the stock an "outperform" rating in a research report on Monday, May 18th. 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. Weiss Ratings reissued a "hold (c+)" rating on shares of Kodiak Gas Services in a report on Friday, May 29th. Finally, Barclays decreased their price target on Kodiak Gas Services from $76.00 to $72.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $79.33.

Kodiak Gas Services Stock Performance

NYSE:KGS opened at $56.42 on Tuesday. The firm's fifty day moving average price is $68.30 and its 200 day moving average price is $59.86. Kodiak Gas Services has a 1-year low of $30.06 and a 1-year high of $77.68. The company has a debt-to-equity ratio of 2.38, a current ratio of 1.28 and a quick ratio of 0.99. The firm has a market cap of $5.01 billion, a price-to-earnings ratio of 76.25, a price-to-earnings-growth ratio of 0.90 and a beta of 0.89.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last announced its quarterly earnings data on Monday, May 11th. The company reported $0.59 EPS for the quarter, topping analysts' consensus estimates of $0.54 by $0.05. Kodiak Gas Services had a net margin of 5.13% and a return on equity of 13.12%. The company had revenue of $345.76 million during the quarter, compared to the consensus estimate of $340.23 million. During the same quarter in the prior year, the firm earned $0.33 EPS. Kodiak Gas Services's quarterly revenue was up 4.9% on a year-over-year basis. On average, sell-side analysts expect that Kodiak Gas Services will post 2.27 EPS for the current year.

Insider Activity

In other Kodiak Gas Services news, EVP Cory Anne Roclawski sold 4,169 shares of the firm's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $68.36, for a total transaction of $284,992.84. Following the sale, the executive vice president directly owned 24,662 shares of the company's stock, valued at $1,685,894.32. This trade represents a 14.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO William Chad Lenamon sold 1,000 shares of Kodiak Gas Services stock in a transaction dated Monday, July 13th. The stock was sold at an average price of $67.79, for a total transaction of $67,790.00. Following the sale, the chief operating officer owned 87,294 shares of the company's stock, valued at approximately $5,917,660.26. This trade represents a 1.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 13,523 shares of company stock valued at $921,319 in the last 90 days. Company insiders own 0.64% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in KGS. Invesco Ltd. boosted its holdings in shares of Kodiak Gas Services by 20.4% during the fourth quarter. Invesco Ltd. now owns 7,593,274 shares of the company's stock worth $283,988,000 after purchasing an additional 1,287,485 shares during the last quarter. Vanguard Group Inc. boosted its stake in Kodiak Gas Services by 33.8% in the 4th quarter. Vanguard Group Inc. now owns 6,170,360 shares of the company's stock worth $230,771,000 after buying an additional 1,559,172 shares during the last quarter. Zimmer Partners LP grew its holdings in Kodiak Gas Services by 45.7% in the 4th quarter. Zimmer Partners LP now owns 4,271,553 shares of the company's stock valued at $159,756,000 after buying an additional 1,339,849 shares during the period. State Street Corp grew its holdings in Kodiak Gas Services by 31.8% in the 4th quarter. State Street Corp now owns 3,340,008 shares of the company's stock valued at $124,916,000 after buying an additional 806,191 shares during the period. Finally, Dimensional Fund Advisors LP increased its stake in shares of Kodiak Gas Services by 4.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,105,555 shares of the company's stock valued at $181,108,000 after acquiring an additional 135,998 shares during the last quarter. 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. 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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