Mizuho Forecasts Strong Price Appreciation for Kinetik (NYSE:KNTK) Stock

Key Points

• Mizuho raised its price target on Kinetik to $51 and kept an outperform rating (about a 6% upside); multiple other brokers have also lifted targets, leaving a consensus "Moderate Buy" and an average price target of $48.33.
• Kinetik posted a significant quarterly beat with EPS of $2.16 versus $0.15 expected and revenue of $430.4 million (up 11.5% YoY), and reported a 29.23% net margin.
• Insiders have been net sellers recently, disposing of roughly 4.17 million shares valued at about $187.5 million in the past three months, with insiders retaining 3.56% ownership.

Kinetik (NYSE:KNTK - Get Free Report) had its price target increased by research analysts at Mizuho from $48.00 to $51.00 in a report issued on Tuesday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Mizuho's price target points to a potential upside of 5.99% from the company's previous close.

A number of other equities analysts also recently weighed in on KNTK. Citigroup upped their price target on shares of Kinetik from $46.00 to $51.00 and gave the stock a "buy" rating in a research note on Monday, March 2nd. Raymond James Financial set a $46.00 target price on Kinetik in a research note on Monday, January 5th. Scotiabank lifted their price objective on Kinetik from $49.00 to $51.00 and gave the company a "sector outperform" rating in a report on Tuesday, March 17th. Weiss Ratings reissued a "hold (c)" rating on shares of Kinetik in a report on Tuesday, April 21st. Finally, Wells Fargo & Company upgraded shares of Kinetik from an "equal weight" rating to an "overweight" rating and lifted their target price for the company from $47.00 to $52.00 in a research note on Wednesday, March 25th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $48.33.

Kinetik Stock Performance

KNTK opened at $48.12 on Tuesday. The company has a market capitalization of $7.80 billion, a P/E ratio of 18.72, a PEG ratio of 1.50 and a beta of 0.66. Kinetik has a 1-year low of $31.33 and a 1-year high of $49.55. The company has a 50-day moving average of $46.22 and a 200-day moving average of $40.23.

Kinetik (NYSE:KNTK - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported $2.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.15 by $2.01. Kinetik had a net margin of 29.23% and a negative return on equity of 32.70%. The business had revenue of $430.42 million during the quarter. During the same period in the prior year, the company earned $0.01 EPS. Kinetik's quarterly revenue was up 11.5% on a year-over-year basis. As a group, sell-side analysts expect that Kinetik will post 1.01 earnings per share for the current fiscal year.

Insider Activity

In other Kinetik news, insider Trevor Howard sold 1,619 shares of Kinetik stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $46.92, for a total value of $75,963.48. Following the sale, the insider directly owned 249,795 shares in the company, valued at approximately $11,720,381.40. The trade was a 0.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Steven Stellato sold 2,907 shares of the business's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $46.92, for a total transaction of $136,396.44. Following the sale, the insider directly owned 393,382 shares in the company, valued at $18,457,483.44. This trade represents a 0.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 4,167,948 shares of company stock valued at $187,477,156. 3.56% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Comerica Bank grew its stake in Kinetik by 91.5% in the first quarter. Comerica Bank now owns 1,532 shares of the company's stock valued at $80,000 after purchasing an additional 732 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Kinetik by 4.2% during the 1st quarter. AQR Capital Management LLC now owns 12,900 shares of the company's stock worth $670,000 after purchasing an additional 522 shares in the last quarter. Millennium Management LLC boosted its holdings in shares of Kinetik by 88.7% in the 1st quarter. Millennium Management LLC now owns 132,533 shares of the company's stock valued at $6,884,000 after buying an additional 62,306 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Kinetik by 27.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 79,532 shares of the company's stock valued at $4,131,000 after acquiring an additional 17,034 shares during the last quarter. Finally, Intech Investment Management LLC lifted its stake in shares of Kinetik by 14.3% during the 1st quarter. Intech Investment Management LLC now owns 22,114 shares of the company's stock worth $1,149,000 after buying an additional 2,766 shares during the last quarter. 21.11% of the stock is owned by institutional investors and hedge funds.

Kinetik Company Profile

Kinetik NYSE: KNTK is a publicly listed midstream energy company focused on the development, operation and management of natural gas infrastructure across the United States. The company's core business activities include the gathering, compression, processing, storage and transportation of natural gas, serving producers, utilities and industrial consumers. By integrating a suite of midstream services under a single platform, Kinetik aims to provide efficient, cost-effective and reliable solutions across the natural gas value chain.

The company was established in 2021 when assets were acquired from Talen Energy by a subsidiary of ArcLight Capital Partners, forming a comprehensive portfolio of pipelines, compression facilities and underground storage assets.

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