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

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) shares gapped down prior to trading 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 trading hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on KGS. JPMorgan Chase & Co. reissued a "buy" rating and issued a $43.00 target price (up previously from $42.00) on shares of Kodiak Gas Services in a research note on Monday, June 23rd. Zacks Research downgraded shares of Kodiak Gas Services from a "strong-buy" rating to a "hold" rating in a research note on Wednesday. Mizuho increased their target price on shares of Kodiak Gas Services from $45.00 to $47.00 and gave the company an "outperform" rating in a research note on Friday, August 29th. Barclays increased their target price 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. Finally, Royal Bank Of Canada increased their target price on shares of Kodiak Gas Services from $42.00 to $43.00 and gave the company an "outperform" rating in a research note on Wednesday, August 13th. Nine research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Kodiak Gas Services has a consensus rating of "Moderate Buy" and an average price target of $41.30.

Kodiak Gas Services Stock Down 1.4%

The company has a market cap of $2.88 billion, a PE ratio of 36.94 and a beta of 1.34. The company's 50 day moving average is $33.48 and its 200 day moving average is $34.73. The company has a current ratio of 1.10, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89.

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

Kodiak Gas Services Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, August 4th were given a dividend of $0.45 per share. The ex-dividend date of this dividend was Monday, August 4th. This represents a $1.80 dividend on an annualized basis and a yield of 5.4%. Kodiak Gas Services's dividend payout ratio (DPR) is 200.00%.

Kodiak Gas Services declared that its board has approved a share repurchase plan on Monday, August 11th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to buy up to 1.8% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Squarepoint Ops LLC increased its position in Kodiak Gas Services by 545.8% during the 2nd quarter. Squarepoint Ops LLC now owns 228,073 shares of the company's stock valued at $7,816,000 after purchasing an additional 192,754 shares during the period. Tyler Stone Wealth Management purchased a new position in Kodiak Gas Services during the 2nd quarter valued at about $1,068,000. FORA Capital LLC purchased a new position in Kodiak Gas Services during the 2nd quarter valued at about $499,000. Tower Research Capital LLC TRC increased its position in Kodiak Gas Services by 37.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,779 shares of the company's stock valued at $267,000 after purchasing an additional 2,100 shares during the period. Finally, Captrust Financial Advisors increased its position in Kodiak Gas Services by 2.7% during the 2nd quarter. Captrust Financial Advisors now owns 16,925 shares of the company's stock valued at $580,000 after purchasing an additional 448 shares during the period. 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.