Kodiak Gas Services (NYSE:KGS) Stock Price Down 9.3% - Here's Why

Key Points

• Kodiak Gas Services shares fell 9.3% on Friday, trading as low as $59.43 after closing at $65.28 the previous day, on lighter-than-usual volume.
• Despite the drop, analyst sentiment remains constructive: nine analysts rate the stock a Buy, two a Hold, and the average price target is $79.50. Recent calls from Goldman Sachs, Citigroup, and Stifel Nicolaus all lifted their targets and maintained Buy ratings.
• The company recently beat quarterly earnings expectations, reporting $0.59 EPS on revenue of $345.76 million, and it also paid a $0.49 quarterly dividend. However, insiders have been selling shares, including recent sales by the COO and another executive.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) fell 9.3% during trading on Friday . The stock traded as low as $59.43 and last traded at $59.22. Approximately 1,343,861 shares traded hands during trading, a decline of 19% from the average session volume of 1,660,620 shares. The stock had previously closed at $65.28.

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Wall Street Analysts Forecast Growth

Several research firms have weighed in on KGS. The Goldman Sachs Group upped their target price on Kodiak Gas Services from $69.00 to $88.00 and gave the company a "buy" rating in a report on Friday, May 15th. Weiss Ratings reissued a "hold (c+)" rating on shares of Kodiak Gas Services in a research note on Friday, May 29th. Barclays cut their price objective on shares of Kodiak Gas Services from $76.00 to $72.00 and set an "overweight" rating on the stock in a report on Wednesday, July 8th. Citigroup upped their price target on shares of Kodiak Gas Services from $63.00 to $86.00 and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Finally, Stifel Nicolaus lifted their target price on Kodiak Gas Services from $84.00 to $90.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Nine equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $79.50.

Kodiak Gas Services Trading Down 10.3%

The company has a current ratio of 1.28, a quick ratio of 0.99 and a debt-to-equity ratio of 2.38. The stock has a market cap of $5.20 billion, a price-to-earnings ratio of 79.11, a price-to-earnings-growth ratio of 1.05 and a beta of 0.89. The business has a 50 day simple moving average of $69.35 and a two-hundred day simple moving average of $59.40.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.54 by $0.05. The firm had revenue of $345.76 million for the quarter, compared to analysts' expectations of $340.23 million. Kodiak Gas Services had a net margin of 5.13% and a return on equity of 13.12%. The firm's quarterly revenue was up 4.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.33 earnings per share. As a group, equities analysts anticipate that Kodiak Gas Services, Inc. will post 2.27 EPS for the current year.

Kodiak Gas Services Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Monday, May 18th were given a dividend of $0.49 per share. This represents a $1.96 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend was Monday, May 18th. Kodiak Gas Services's dividend payout ratio is currently 264.86%.

Insider Buying and Selling at Kodiak Gas Services

In other news, COO William Chad Lenamon sold 1,000 shares of the firm's stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $67.79, for a total value of $67,790.00. Following the transaction, the chief operating officer directly owned 87,294 shares in the company, valued at approximately $5,917,660.26. This trade represents a 1.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Pedro R. Buhigas sold 4,625 shares of the firm's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $67.78, for a total transaction of $313,482.50. Following the completion of the transaction, the insider directly owned 38,454 shares in the company, valued at $2,606,412.12. This represents a 10.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 13,523 shares of company stock valued at $921,319 over the last three months. 0.64% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Kodiak Gas Services

Hedge funds and other institutional investors have recently made changes to their positions in the business. Charles Schwab Investment Management Inc. grew its position in Kodiak Gas Services by 29.2% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 901,406 shares of the company's stock valued at $33,713,000 after buying an additional 203,809 shares in the last quarter. Westend Capital Management LLC acquired a new position in Kodiak Gas Services in the fourth quarter worth approximately $13,585,000. HighTower Advisors LLC lifted its holdings in shares of Kodiak Gas Services by 40.5% during the fourth quarter. HighTower Advisors LLC now owns 57,699 shares of the company's stock valued at $2,158,000 after purchasing an additional 16,619 shares during the last quarter. Maven Securities LTD raised its holdings in Kodiak Gas Services by 694.0% during the 4th quarter. Maven Securities LTD now owns 100,000 shares of the company's stock worth $3,740,000 after buying an additional 87,406 shares during the period. Finally, Argentarii LLC raised its holdings in shares of Kodiak Gas Services by 293.7% during the fourth quarter. Argentarii LLC now owns 23,620 shares of the company's stock valued at $883,000 after acquiring an additional 17,620 shares during the period. 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. 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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