Kodiak Gas Services (NYSE:KGS) Stock Price Down 8.7% After Insider Selling

Key Points

• Shares of Kodiak Gas Services fell 8.7% to about $58.31 after COO William Lenamon sold 1,000 shares for $63,210. Trading volume was approximately 538,861 shares, 68% below the average.
• Wall Street remains broadly positive, with 10 Buy ratings and two Hold ratings. The stock has an average price target of $78.89, implying significant upside from its trading level.
• Recent results were mixed: quarterly revenue rose 21.2% year over year to $391.12 million and exceeded estimates, but adjusted earnings of $0.55 per share missed expectations of $0.67. The company also declared a quarterly dividend of $0.49, representing a 3.4% annualized yield.

Shares of Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) fell 8.7% during mid-day trading on Monday after an insider sold shares in the company. The company traded as low as $57.66 and last traded at $58.3050. Approximately 538,861 shares changed hands during trading, a decline of 68% from the average daily volume of 1,667,090 shares. The stock had previously closed at $63.85.

Specifically, COO William Lenamon sold 1,000 shares of the stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $63.21, for a total transaction of $63,210.00. Following the completion of the transaction, the chief operating officer directly owned 85,294 shares of the company's stock, valued at $5,391,433.74. This represents a 1.16% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on KGS. Stifel Nicolaus raised their target price on Kodiak Gas Services from $90.00 to $92.00 and gave the stock a "buy" rating in a research report on Tuesday, August 11th. Wells Fargo & Company assumed coverage on Kodiak Gas Services in a report on Wednesday, May 27th. They issued an "overweight" rating and a $93.00 price objective for the company. Piper Sandler assumed coverage on Kodiak Gas Services in a research note on Tuesday, July 28th. They issued an "overweight" rating and a $78.00 price objective on the stock. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Kodiak Gas Services in a report on Wednesday, August 26th. Finally, Royal Bank Of Canada increased their target price on shares of Kodiak Gas Services from $84.00 to $88.00 and gave the stock an "outperform" rating in a research report on Thursday, August 13th. Ten analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $78.89.

Kodiak Gas Services Stock Down 8.8%

The stock has a fifty day simple moving average of $62.31 and a two-hundred day simple moving average of $63.85. The firm has a market cap of $5.89 billion, a PE ratio of 69.33, a price-to-earnings-growth ratio of 0.93 and a beta of 0.96. The company has a current ratio of 1.45, a quick ratio of 1.15 and a debt-to-equity ratio of 1.28.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.67 by ($0.12). The firm had revenue of $391.12 million during the quarter, compared to analysts' expectations of $386.30 million. Kodiak Gas Services had a return on equity of 11.92% and a net margin of 5.77%.The company's quarterly revenue was up 21.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.43 earnings per share. As a group, sell-side analysts expect that Kodiak Gas Services, Inc. will post 2.44 EPS for the current fiscal year.

Kodiak Gas Services Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Monday, August 17th were issued a $0.49 dividend. This represents a $1.96 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend was Monday, August 17th. Kodiak Gas Services's dividend payout ratio (DPR) is presently 233.33%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in KGS. BlackRock Inc. bought a new position in Kodiak Gas Services in the 2nd quarter worth about $1,142,139,000. California State Teachers Retirement System boosted its position in shares of Kodiak Gas Services by 8,307.7% during the 2nd quarter. California State Teachers Retirement System now owns 8,441,006 shares of the company's stock valued at $634,173,000 after acquiring an additional 8,340,610 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Kodiak Gas Services by 20.4% during the fourth quarter. Invesco Ltd. now owns 7,593,274 shares of the company's stock worth $283,988,000 after purchasing an additional 1,287,485 shares in the last quarter. Zimmer Partners LP increased its position in shares of Kodiak Gas Services by 45.7% in the fourth quarter. Zimmer Partners LP now owns 4,271,553 shares of the company's stock worth $159,756,000 after purchasing an additional 1,339,849 shares during the last quarter. Finally, State Street Corp increased its position in shares of Kodiak Gas Services by 31.8% in the fourth quarter. State Street Corp now owns 3,340,008 shares of the company's stock worth $124,916,000 after purchasing an additional 806,191 shares during the last quarter. Institutional investors own 24.95% of the company's stock.

Kodiak Gas Services Company Profile

Kodiak Gas Services, Inc NYSE: KGS provides natural gas compression services to producers, processors, gatherers and other midstream companies in the United States. Its compression equipment increases and maintains the pressure of natural gas as it moves from production sites through gathering systems, processing facilities and pipelines.

The company primarily operates under long-term contracts and offers compression-as-a-service solutions. Its services include the design, installation, operation, maintenance, repair and overhaul of natural gas compression equipment.

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