Kodiak Gas Services (NYSE:KGS) Shares Gap Up - Should You 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)'s stock price gapped up prior to trading 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.

Wall Street Analysts Forecast Growth

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

Kodiak Gas Services Trading Down 2.8%

The business has a 50-day moving average of $33.34 and a 200-day moving average of $36.77. The stock has a market cap of $2.74 billion, a price-to-earnings ratio of 34.28 and a beta of 1.33. The company has a quick ratio of 0.87, a current ratio of 1.17 and a debt-to-equity ratio of 1.91.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.03. Kodiak Gas Services had a net margin of 6.48% and a return on equity of 10.30%. The company had revenue of $322.84 million for the quarter, compared to the consensus estimate of $335.10 million. During the same quarter in the previous year, the firm posted $0.06 EPS. The business's revenue was up 4.2% compared to the same quarter last year. As a group, research analysts forecast that Kodiak Gas Services, Inc. will post 1.12 earnings per share for the current year.

Kodiak Gas Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 14th. Stockholders of record on Monday, August 4th will be issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 5.8%. The ex-dividend date of this dividend is Monday, August 4th. Kodiak Gas Services's dividend payout ratio (DPR) is presently 339.62%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Allworth Financial LP boosted its stake in Kodiak Gas Services by 1,850.0% in the 2nd quarter. Allworth Financial LP now owns 741 shares of the company's stock valued at $25,000 after buying an additional 703 shares in the last quarter. Comerica Bank increased its holdings in shares of Kodiak Gas Services by 710.1% during the fourth quarter. Comerica Bank now owns 721 shares of the company's stock worth $29,000 after buying an additional 632 shares in the last quarter. Quarry LP acquired a new position in shares of Kodiak Gas Services in the 1st quarter worth approximately $30,000. Sterling Capital Management LLC grew its position in Kodiak Gas Services by 1,322.6% during the 4th quarter. Sterling Capital Management LLC now owns 754 shares of the company's stock worth $31,000 after acquiring an additional 701 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S bought a new position in Kodiak Gas Services in the 1st quarter valued at $37,000. 24.95% of the stock is currently owned by institutional investors and hedge funds.

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.