Kodiak Gas Services (NYSE:KGS) Shares Gap Up - Time to Buy?

Key Points

• Kodiak Gas Services shares gapped up 6.78% before the market opened on Monday, rising from a previous close of $30.85 to $32.93, and were last trading at $31.47 with a volume of 418,130 shares.
• Analysts maintain a consensus rating of "Moderate Buy," with JPMorgan setting a target price of $43.00, whereas Barclays and Mizuho adjusted their targets to $36.00 and $45.00 respectively.
• The company recently declared a quarterly dividend of $0.45 per share, representing an annual yield of 5.7%, although its payout ratio stands at a high 339.62%.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $30.85, but opened at $32.93. Kodiak Gas Services shares last traded at $31.47, with a volume of 418,130 shares changing hands.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. JPMorgan Chase & Co. restated a "buy" rating and set a $43.00 target price (up previously from $42.00) on shares of Kodiak Gas Services in a research report on Monday, June 23rd. Barclays lowered their price target on Kodiak Gas Services from $41.00 to $36.00 and set an "equal weight" rating for the company in a report on Wednesday, April 16th. Finally, Mizuho lowered their price target on Kodiak Gas Services from $46.00 to $45.00 and set an "outperform" rating for the company in a report on Tuesday, May 20th. One research analyst has rated the stock with a hold rating and ten have issued a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $40.64.

Kodiak Gas Services Price Performance

The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.87 and a current ratio of 1.17. The company has a market cap of $2.79 billion, a PE ratio of 59.43 and a beta of 1.33. The company's 50-day simple moving average is $33.61 and its 200 day simple moving average is $37.05.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $0.42 EPS for the quarter, beating the consensus estimate of $0.39 by $0.03. The company had revenue of $329.64 million during the quarter, compared to analysts' expectations of $328.45 million. Kodiak Gas Services had a net margin of 3.93% and a return on equity of 8.49%. The firm's revenue was up 52.9% compared to the same quarter last year. During the same quarter last year, the company posted $0.39 EPS. On average, sell-side analysts predict that Kodiak Gas Services, Inc. will post 1.12 earnings per share for the current fiscal year.

Kodiak Gas Services Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 14th. Investors of record on Monday, August 4th will be given a $0.45 dividend. The ex-dividend date of this dividend is Monday, August 4th. This represents a $1.80 dividend on an annualized basis and a yield of 5.7%. Kodiak Gas Services's payout ratio is 339.62%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. FMR LLC boosted its position in Kodiak Gas Services by 50.2% during the fourth quarter. FMR LLC now owns 7,342,296 shares of the company's stock worth $299,786,000 after acquiring an additional 2,452,492 shares during the last quarter. Encompass Capital Advisors LLC acquired a new position in shares of Kodiak Gas Services in the 4th quarter valued at $66,122,000. Zimmer Partners LP lifted its holdings in shares of Kodiak Gas Services by 88.1% during the 4th quarter. Zimmer Partners LP now owns 3,347,700 shares of the company's stock valued at $136,687,000 after acquiring an additional 1,567,849 shares in the last quarter. T. Rowe Price Investment Management Inc. acquired a new position in shares of Kodiak Gas Services during the 1st quarter valued at $40,648,000. Finally, Vanguard Group Inc. lifted its holdings in shares of Kodiak Gas Services by 52.3% during the 4th quarter. Vanguard Group Inc. now owns 2,659,015 shares of the company's stock valued at $108,568,000 after acquiring an additional 913,104 shares in the last quarter. 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.

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