Kodiak Gas Services (NYSE:KGS) Reaches New 52-Week High - Still a Buy?

Key Points

• Kodiak Gas Services hit a new 52-week high (trading as high as $71.49) and has attracted multiple analyst upgrades—seven Buys, one Hold and one Sell—with a MarketBeat average target of $55.86.
• Fundamentals are mixed: the company missed quarterly EPS ($0.40 vs. $0.53 expected) while revenue rose 7.6% year-over-year to $332.9M, and the shares trade at a high valuation (PE 78.07) with leverage (debt-to-equity 2.12).
• Insiders were net sellers last quarter (58,673 shares sold, $3.27M), even as institutional investors increased stakes (notably Principal and Rhumbline); institutional ownership is about 24.95%.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report)'s share price hit a new 52-week high on Monday . The stock traded as high as $71.49 and last traded at $68.4790, with a volume of 10677 shares trading hands. The stock had previously closed at $68.54.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on KGS shares. Citigroup lifted their price target on Kodiak Gas Services from $53.00 to $63.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. Mizuho lifted their price target on Kodiak Gas Services from $36.00 to $44.00 and gave the company an "outperform" rating in a research note on Tuesday, January 20th. Zacks Research lowered Kodiak Gas Services from a "hold" rating to a "strong sell" rating in a research note on Tuesday, April 7th. Royal Bank Of Canada lifted their price target on Kodiak Gas Services from $45.00 to $64.00 and gave the company an "outperform" rating in a research note on Thursday, March 19th. Finally, The Goldman Sachs Group lifted their price target on Kodiak Gas Services from $60.00 to $69.00 and gave the company a "buy" rating in a research note on Monday, April 20th. Seven research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $55.86.

Kodiak Gas Services Trading Down 1.0%

The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.57 and a current ratio of 0.84. The company has a 50 day moving average of $58.78 and a two-hundred day moving average of $45.40. The stock has a market cap of $5.83 billion, a PE ratio of 78.07, a price-to-earnings-growth ratio of 0.97 and a beta of 1.01.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The company reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.13). Kodiak Gas Services had a return on equity of 11.55% and a net margin of 6.16%.The firm had revenue of $332.87 million during the quarter, compared to analyst estimates of $330.95 million. During the same quarter in the previous year, the firm posted $0.21 earnings per share. The company's quarterly revenue was up 7.6% on a year-over-year basis. Sell-side analysts anticipate that Kodiak Gas Services, Inc. will post 2.34 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Pedro R. Buhigas sold 13,942 shares of Kodiak Gas Services stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $55.73, for a total value of $776,987.66. Following the sale, the insider directly owned 42,723 shares in the company, valued at approximately $2,380,952.79. The trade was a 24.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible 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 owned 34,346 shares in the company, valued at approximately $1,929,558.28. The trade was a 14.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders acquired 11,433 shares of company stock worth $624,360 and sold 58,673 shares worth $3,269,110. 0.64% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kodiak Gas Services

Institutional investors have recently bought and sold shares of the company. Principal Financial Group Inc. boosted its holdings in Kodiak Gas Services by 492.8% in the 3rd quarter. Principal Financial Group Inc. now owns 399,041 shares of the company's stock worth $14,753,000 after buying an additional 331,732 shares during the last quarter. Rhumbline Advisers boosted its holdings in shares of Kodiak Gas Services by 126.9% during the 3rd quarter. Rhumbline Advisers now owns 179,160 shares of the company's stock worth $6,624,000 after purchasing an additional 100,194 shares during the last quarter. Public Sector Pension Investment Board purchased a new stake in shares of Kodiak Gas Services in the third quarter valued at approximately $9,491,000. New York State Common Retirement Fund grew its position in shares of Kodiak Gas Services by 395.1% in the third quarter. New York State Common Retirement Fund now owns 84,838 shares of the company's stock valued at $3,136,000 after purchasing an additional 67,704 shares in the last quarter. Finally, Westend Capital Management LLC acquired a new stake in shares of Kodiak Gas Services in the fourth quarter valued at approximately $13,585,000. 24.95% of the stock is currently owned by institutional investors and hedge funds.

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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