Kodiak Gas Services (NYSE:KGS) Raised to Strong-Buy at Wells Fargo & Company

Key Points

• Wells Fargo upgraded Kodiak Gas Services to “strong-buy,” adding to a broadly bullish analyst outlook. Overall, the stock now has an average rating of Moderate Buy with an average price target of $74.75.
• Several other firms recently raised price targets on KGS, including Citigroup to $86, Barclays to $76, and Royal Bank of Canada to $84. The stock has one Strong Buy, seven Buy ratings, and two Hold ratings.
• Kodiak Gas Services also posted a better-than-expected quarter, with EPS of $0.59 versus $0.54 expected and revenue of $345.76 million versus $340.23 million expected. Revenue rose 4.9% year over year, supporting the upbeat analyst revisions.

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

A number of other equities analysts also recently issued reports on the company. Citigroup raised their price target on Kodiak Gas Services from $63.00 to $86.00 and gave the stock a "buy" rating in a research note on Wednesday, May 13th. Stifel Nicolaus set a $84.00 price target on Kodiak Gas Services in a research note on Tuesday, May 12th. Barclays raised their price target on Kodiak Gas Services from $60.00 to $76.00 and gave the stock an "overweight" rating in a research note on Thursday, May 21st. Royal Bank Of Canada raised their target price on Kodiak Gas Services from $64.00 to $84.00 and gave the stock an "outperform" rating in a report on Monday, May 18th. Finally, Zacks Research raised Kodiak Gas Services from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Kodiak Gas Services has an average rating of "Moderate Buy" and an average price target of $74.75.

Kodiak Gas Services Stock Performance

Shares of KGS opened at $70.43 on Wednesday. The business's fifty day simple moving average is $65.07 and its two-hundred day simple moving average is $49.92. The company has a current ratio of 1.28, a quick ratio of 0.99 and a debt-to-equity ratio of 2.38. Kodiak Gas Services has a 12 month low of $30.06 and a 12 month high of $77.68. The company has a market cap of $6.25 billion, a price-to-earnings ratio of 95.17, a P/E/G ratio of 1.03 and a beta of 1.01.

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

Insider Buying and Selling at Kodiak Gas Services

In other news, EVP Cory Anne Roclawski sold 10,852 shares of Kodiak Gas Services stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $54.41, for a total value of $590,457.32. Following the sale, the executive vice president directly owned 31,405 shares of the company's stock, valued at approximately $1,708,746.05. The trade was a 25.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Ewan William Hamilton sold 5,797 shares of Kodiak Gas Services stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $56.18, for a total value 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 SEC filing for this sale provides additional information. Over the last quarter, insiders sold 58,673 shares of company stock valued at $3,269,110. 0.64% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kodiak Gas Services

Several large investors have recently made changes to their positions in the company. Invesco Ltd. grew its position in Kodiak Gas Services by 20.4% in the fourth quarter. Invesco Ltd. now owns 7,593,274 shares of the company's stock worth $283,988,000 after acquiring an additional 1,287,485 shares in the last quarter. Vanguard Group Inc. increased its stake in Kodiak Gas Services by 33.8% during the fourth quarter. Vanguard Group Inc. now owns 6,170,360 shares of the company's stock worth $230,771,000 after acquiring an additional 1,559,172 shares during the last quarter. Zimmer Partners LP increased its stake in Kodiak Gas Services by 45.7% during the fourth quarter. Zimmer Partners LP now owns 4,271,553 shares of the company's stock worth $159,756,000 after acquiring an additional 1,339,849 shares during the last quarter. State Street Corp increased its stake in Kodiak Gas Services by 31.8% during the fourth quarter. State Street Corp now owns 3,340,008 shares of the company's stock worth $124,916,000 after acquiring an additional 806,191 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in Kodiak Gas Services by 4.6% during the first quarter. Dimensional Fund Advisors LP now owns 3,105,555 shares of the company's stock worth $181,108,000 after acquiring an additional 135,998 shares during the last quarter. 24.95% of the stock is owned by institutional investors.

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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