Kodiak Gas Services (NYSE:KGS) Stock Rating Upgraded by Zacks Research

Key Points

• Kodiak Gas Services has been upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating, reflecting increased analyst confidence.
• The company reported earnings of $0.49 per share, exceeding expectations and showing a 4.2% revenue increase year-over-year.
• Kodiak has announced a stock buyback program of $50 million, indicating that its board believes the shares may be undervalued.

Kodiak Gas Services (NYSE:KGS - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Tuesday,Zacks.com reports.

KGS has been the subject of several other reports. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Kodiak Gas Services in a research note on Wednesday, October 8th. Barclays dropped their price objective on Kodiak Gas Services from $37.00 to $35.00 and set an "equal weight" rating on the stock in a research note on Tuesday. Royal Bank Of Canada increased their price objective on shares of Kodiak Gas Services from $42.00 to $43.00 and gave the company an "outperform" rating in a research report on Wednesday, August 13th. JPMorgan Chase & Co. reissued a "buy" rating and set a $43.00 price target (up from $42.00) on shares of Kodiak Gas Services in a report on Monday, June 23rd. Finally, Mizuho boosted their price objective on shares of Kodiak Gas Services from $45.00 to $47.00 and gave the company an "outperform" rating in a report on Friday, August 29th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Buy" and a consensus target price of $43.25.

Kodiak Gas Services Stock Up 0.1%

NYSE:KGS opened at $34.42 on Tuesday. The company has a current ratio of 1.10, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89. The stock has a 50-day moving average price of $34.81 and a two-hundred day moving average price of $34.20. Kodiak Gas Services has a 1 year low of $29.25 and a 1 year high of $50.43. The stock has a market cap of $2.98 billion, a price-to-earnings ratio of 38.24 and a beta of 1.32.

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

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

Hedge Funds Weigh In On Kodiak Gas Services

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Allworth Financial LP lifted its stake in shares of 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 purchasing an additional 703 shares during the period. Quarry LP acquired a new position in shares of Kodiak Gas Services during the first quarter valued at about $30,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in Kodiak Gas Services during the 1st quarter worth approximately $37,000. EverSource Wealth Advisors LLC grew its holdings in Kodiak Gas Services by 1,501.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,233 shares of the company's stock worth $42,000 after buying an additional 1,156 shares in the last quarter. Finally, Salem Investment Counselors Inc. bought a new stake in shares of Kodiak Gas Services in the 2nd quarter worth $51,000. 24.95% of the stock is 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.

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