Kodiak Gas Services (NYSE:KGS) Sets New 1-Year High Following Earnings Beat

Key Points

• Kodiak Gas Services shares hit a new 52-week high after the company reported stronger-than-expected quarterly results, with EPS of $0.59 versus the $0.54 consensus estimate.
• Revenue rose 4.9% year over year, and the stock traded as high as $75.76 before closing near $73.64, reflecting a strong post-earnings move.
• The company also declared a quarterly dividend of $0.49 per share, payable May 28, while analysts currently rate the stock a consensus Moderate Buy.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) shares reached a new 52-week high during trading on Monday following a stronger than expected earnings report. The company traded as high as $75.76 and last traded at $73.6390, with a volume of 558391 shares trading hands. The stock had previously closed at $69.65.

The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.54 by $0.05. Kodiak Gas Services had a net margin of 6.16% and a return on equity of 11.55%. The business's revenue was up 4.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.33 earnings per share.

Kodiak Gas Services Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Monday, May 18th will be paid a $0.49 dividend. The ex-dividend date is Monday, May 18th. This represents a $1.96 annualized dividend and a yield of 2.7%. Kodiak Gas Services's dividend payout ratio is currently 225.29%.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Zacks Research upgraded shares of Kodiak Gas Services from a "strong sell" rating to a "hold" rating in a research note on Wednesday, May 6th. The Goldman Sachs Group increased their target price on shares of Kodiak Gas Services from $60.00 to $69.00 and gave the stock a "buy" rating in a research note on Monday, April 20th. Barclays increased their target price on shares of Kodiak Gas Services from $49.00 to $60.00 and gave the stock an "overweight" rating in a research note on Thursday, March 5th. Royal Bank Of Canada increased their target price on shares of Kodiak Gas Services from $45.00 to $64.00 and gave the stock an "outperform" rating in a research note on Thursday, March 19th. Finally, Wall Street Zen upgraded shares of Kodiak Gas Services from a "sell" rating to a "hold" rating in a research note on Saturday, February 21st. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $55.86.

Insider Activity

In related news, Director Alexander Newsom Darden acquired 5,000 shares of the stock in a transaction dated Friday, March 13th. The shares were purchased at an average price of $54.75 per share, for a total transaction of $273,750.00. Following the transaction, the director owned 5,000 shares in the company, valued at $273,750. This represents a ∞ increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Cory Anne Roclawski sold 10,852 shares of Kodiak Gas Services stock in a transaction on Monday, March 16th. The stock was sold at an average price of $54.41, for a total transaction of $590,457.32. Following the completion of the transaction, the executive vice president owned 31,405 shares in the company, valued at approximately $1,708,746.05. The trade was a 25.68% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have bought 11,433 shares of company stock worth $624,360 and have sold 58,673 shares worth $3,269,110. Corporate insiders own 0.64% of the company's stock.

Hedge Funds Weigh In On Kodiak Gas Services

A number of large investors have recently added to or reduced their stakes in the business. Invesco Ltd. raised its position in Kodiak Gas Services by 20.4% in the 4th 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 period. Vanguard Group Inc. raised its position 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 purchasing an additional 1,559,172 shares during the period. Zimmer Partners LP raised its position 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 worth $159,756,000 after purchasing 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 worth $124,916,000 after acquiring an additional 806,191 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of Kodiak Gas Services by 4.6% in the first 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 period. Hedge funds and other institutional investors own 24.95% of the company's stock.

Kodiak Gas Services Price Performance

The business's 50-day simple moving average is $60.00 and its 200-day simple moving average is $46.17. The stock has a market cap of $6.29 billion, a PE ratio of 83.70, a PEG ratio of 0.96 and a beta of 1.01. The company has a quick ratio of 0.57, a current ratio of 0.84 and a debt-to-equity ratio of 2.12.

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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