Kodiak Gas Services (NYSE:KGS) Shares Gap Down - Here's Why

Key Points

• Kodiak Gas Services shares gapped down from $35.32 to $34.00 at market opening on Monday, eventually trading at $33.76 with considerable volume.
• Multiple analysts have raised their price targets for Kodiak Gas Services, with a consensus target of $41.30 and a prevalent rating of "Moderate Buy."
• The company announced a quarterly dividend of $0.45 per share, representing a yield of 5.3%, and initiated a share buyback program worth $50 million.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $35.32, but opened at $34.00. Kodiak Gas Services shares last traded at $33.76, with a volume of 2,393,633 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on KGS. Royal Bank Of Canada upped their target price on Kodiak Gas Services from $42.00 to $43.00 and gave the company an "outperform" rating in a report on Wednesday, August 13th. Barclays upped their price objective on shares of Kodiak Gas Services from $36.00 to $37.00 and gave the company an "equal weight" rating in a research note on Thursday, August 14th. JPMorgan Chase & Co. reissued a "buy" rating and set a $43.00 target price (up previously from $42.00) on shares of Kodiak Gas Services in a research note on Monday, June 23rd. Finally, Mizuho upped their price target on shares of Kodiak Gas Services from $45.00 to $47.00 and gave the stock an "outperform" rating in a research note on Friday, August 29th. Nine research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $41.30.

Kodiak Gas Services Price Performance

The company's 50-day simple moving average is $33.49 and its 200 day simple moving average is $34.79. The company has a market capitalization of $2.92 billion, a P/E ratio of 37.39 and a beta of 1.34. The company has a quick ratio of 0.78, a current ratio of 1.10 and a debt-to-equity ratio of 1.89.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.03. The business had revenue of $322.84 million during the quarter, compared to analyst estimates of $335.10 million. Kodiak Gas Services had a net margin of 6.48% and a return on equity of 10.35%. Kodiak Gas Services's quarterly revenue was up 4.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.06 EPS. As a group, sell-side analysts expect that Kodiak Gas Services, Inc. will post 1.12 earnings per share for the current fiscal year.

Kodiak Gas Services Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, August 14th. Stockholders of record on Monday, August 4th were paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 5.3%. The ex-dividend date was Monday, August 4th. Kodiak Gas Services's dividend payout ratio is 200.00%.

Kodiak Gas Services announced that its board has initiated a stock repurchase program on Monday, August 11th that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the company to buy up to 1.8% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Kodiak Gas Services

Several institutional investors and hedge funds have recently added to or reduced their stakes in KGS. Allworth Financial LP grew its holdings in Kodiak Gas Services by 1,850.0% during the second quarter. Allworth Financial LP now owns 741 shares of the company's stock valued at $25,000 after purchasing an additional 703 shares during the last quarter. Comerica Bank boosted its holdings in shares of Kodiak Gas Services by 710.1% during the 4th quarter. Comerica Bank now owns 721 shares of the company's stock worth $29,000 after buying an additional 632 shares during the period. Quarry LP acquired a new position in Kodiak Gas Services in the 1st quarter valued at $30,000. BI Asset Management Fondsmaeglerselskab A S acquired a new position in Kodiak Gas Services in the 1st quarter valued at $37,000. Finally, EverSource Wealth Advisors LLC raised its holdings in Kodiak Gas Services by 1,501.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,233 shares of the company's stock worth $42,000 after acquiring an additional 1,156 shares during the period. 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.