Short Interest in Kodiak Gas Services, Inc. (NYSE:KGS) Drops By 25.9%

Key Points

• Short interest in Kodiak Gas Services decreased by 25.9% in September, with a current total of 7.63 million shares, indicating less bearish sentiment among investors.
• The company reported earnings per share of $0.49 for the last quarter, surpassing the consensus estimate of $0.46, while revenues were slightly below estimates at $322.84 million.
• Kodiak Gas Services announced a $50 million share buyback program and a quarterly dividend of $0.45 per share, reflecting confidence in the company’s valuation and financial health.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) was the recipient of a large drop in short interest in the month of September. As of September 15th, there was short interest totaling 7,630,000 shares, a drop of 25.9% from the August 31st total of 10,300,000 shares. Based on an average trading volume of 1,810,000 shares, the short-interest ratio is presently 4.2 days. Approximately 11.8% of the company's shares are sold short. Approximately 11.8% of the company's shares are sold short. Based on an average trading volume of 1,810,000 shares, the short-interest ratio is presently 4.2 days.

Kodiak Gas Services Trading Down 2.7%

NYSE KGS opened at $33.51 on Tuesday. The company has a quick ratio of 0.78, a current ratio of 1.10 and a debt-to-equity ratio of 1.89. Kodiak Gas Services has a 52 week low of $29.25 and a 52 week high of $50.43. The business has a 50 day moving average price of $34.42 and a 200-day moving average price of $34.32. The company has a market cap of $2.90 billion, a price-to-earnings ratio of 37.23 and a beta of 1.32.

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

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

Kodiak Gas Services Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Stockholders of record on Monday, August 4th were given a dividend of $0.45 per share. The ex-dividend date of this dividend was Monday, August 4th. This represents a $1.80 annualized dividend and a dividend yield of 5.4%. Kodiak Gas Services's payout ratio is presently 200.00%.

Hedge Funds Weigh In On Kodiak Gas Services

Several large investors have recently added to or reduced their stakes in KGS. Invesco Ltd. increased its holdings in Kodiak Gas Services by 59.9% during the 2nd quarter. Invesco Ltd. now owns 4,869,346 shares of the company's stock worth $166,872,000 after purchasing an additional 1,824,407 shares in the last quarter. Zimmer Partners LP grew its holdings in Kodiak Gas Services by 14.2% during the first quarter. Zimmer Partners LP now owns 3,824,063 shares of the company's stock worth $142,638,000 after buying an additional 476,363 shares in the last quarter. Vanguard Group Inc. raised its position in Kodiak Gas Services by 9.0% in the 1st quarter. Vanguard Group Inc. now owns 2,897,588 shares of the company's stock valued at $108,080,000 after buying an additional 238,573 shares during the last quarter. Goldman Sachs Group Inc. raised its position in Kodiak Gas Services by 58.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,983,360 shares of the company's stock valued at $73,979,000 after buying an additional 730,180 shares during the last quarter. Finally, American Century Companies Inc. lifted its stake in Kodiak Gas Services by 24.6% during the 2nd quarter. American Century Companies Inc. now owns 1,622,102 shares of the company's stock valued at $55,589,000 after acquiring an additional 320,022 shares in the last quarter. Institutional investors own 24.95% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on KGS shares. Weiss Ratings restated a "buy (b-)" rating on shares of Kodiak Gas Services in a research report on Saturday, September 27th. Barclays increased their price target on Kodiak Gas Services from $36.00 to $37.00 and gave the stock an "equal weight" rating in a report on Thursday, August 14th. JPMorgan Chase & Co. reaffirmed a "buy" rating and set a $43.00 price objective (up previously from $42.00) on shares of Kodiak Gas Services in a research report on Monday, June 23rd. Royal Bank Of Canada boosted their target price 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. Finally, Zacks Research lowered shares of Kodiak Gas Services from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 10th. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $43.50.

Kodiak Gas Services Company Profile

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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