Kinetik (NYSE:KNTK) Reaches New 12-Month High - Still a Buy?

Key Points

• Kinetik shares reached a new 52-week high of $57.71 and recently traded at $56.85, up 1.3%. Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $55.47.
• The company delivered strong quarterly results, reporting earnings per share of $0.64 versus the $0.19 consensus estimate and revenue of $581.44 million, up 36.3% year over year.
• Insider selling has been significant: a major shareholder sold 2 million shares for approximately $109.5 million, while insiders sold nearly 3.93 million shares worth about $212 million over the past 90 days.

Shares of Kinetik Holdings Inc. (NYSE:KNTK - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday. The company traded as high as $57.71 and last traded at $56.85, with a volume of 526,916 shares. The stock had previously closed at $55.75.

Analysts Set New Price Targets

A number of research analysts have weighed in on KNTK shares. The Goldman Sachs Group reiterated a "buy" rating and set a $58.00 target price on shares of Kinetik in a report on Wednesday, October 14th. Citigroup restated a "buy" rating and issued a $55.00 target price (up from $52.00) on shares of Kinetik in a research note on Tuesday, August 11th. Royal Bank Of Canada lifted their price target on Kinetik from $57.00 to $58.00 and gave the company an "outperform" rating in a research report on Wednesday, October 14th. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $54.00 price target on shares of Kinetik in a research note on Monday, August 10th. Finally, Scotiabank reiterated an "outperform" rating and issued a $59.00 price objective on shares of Kinetik in a report on Thursday, October 15th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $55.47.

Kinetik Stock Up 1.3%

The firm has a market capitalization of $9.17 billion, a P/E ratio of 20.45, a P/E/G ratio of 1.24 and a beta of 0.61. The company has a fifty day simple moving average of $54.01 and a 200 day simple moving average of $48.32.

Kinetik (NYSE:KNTK - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.19 by $0.45. The firm had revenue of $581.44 million during the quarter, compared to the consensus estimate of $421.48 million. Kinetik had a negative return on equity of 38.96% and a net margin of 26.19%. The company's revenue was up 36.3% on a year-over-year basis. During the same period last year, the company earned $0.33 earnings per share. As a group, equities analysts expect that Kinetik Holdings Inc. will post 1.44 earnings per share for the current fiscal year.

Insider Activity at Kinetik

In related news, major shareholder Isq Global Fund Ii Gp Llc sold 2,000,000 shares of the business's stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $54.77, for a total value of $109,540,000.00. Following the completion of the transaction, the insider directly owned 1 shares in the company, valued at $54.77. The trade was a 100.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold a total of 3,931,632 shares of company stock worth $211,967,059 in the last 90 days. Corporate insiders own 3.56% of the company's stock.

Hedge Funds Weigh In On Kinetik

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Soltis Investment Advisors LLC purchased a new position in shares of Kinetik during the 3rd quarter worth $567,000. Pinnacle Wealth Planning Services Inc. grew its position in shares of Kinetik by 5,693.8% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 927 shares of the company's stock worth $47,000 after purchasing an additional 911 shares in the last quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT raised its position in shares of Kinetik by 1.2% during the third quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,773,000 shares of the company's stock valued at $89,005,000 after buying an additional 21,000 shares during the last quarter. Signaturefd LLC increased its holdings in Kinetik by 21.3% in the 3rd quarter. Signaturefd LLC now owns 1,714 shares of the company's stock valued at $86,000 after acquiring an additional 301 shares during the last quarter. Finally, Inspire Investing LLC increased its holdings in shares of Kinetik by 100.8% in the third quarter. Inspire Investing LLC now owns 27,926 shares of the company's stock worth $1,402,000 after purchasing an additional 14,016 shares during the last quarter. 21.11% of the stock is owned by institutional investors.

Kinetik Company Profile

Kinetik Holdings Inc is a midstream energy company that provides infrastructure and services for the gathering, processing, transportation and treatment of natural gas, crude oil and natural gas liquids. Its operations are focused primarily on the Permian Basin, where it connects hydrocarbon production to processing facilities, pipelines and downstream markets.

The company's assets include natural gas gathering and processing systems, crude oil gathering infrastructure, natural gas liquids services and long-haul pipeline interests.

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