Short Interest in Kodiak Gas Services, Inc. (NYSE:KGS) Grows By 56.2%

Key Points

• Short interest in Kodiak Gas Services increased by 56.2% in August, totaling 8,420,000 shares and reflecting 15.1% of the company's shares sold short.
• Analysts have raised their price targets for KGS, with estimates now ranging from $36.00 to $47.00, and a consensus price target of $41.30.
• Kodiak recently announced a $1.80 annualized dividend with a yield of 5.1% and initiated a $50 million share repurchase plan to buy back up to 1.8% of its outstanding shares.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) was the target of a significant growth in short interest in the month of August. As of August 15th, there was short interest totaling 8,420,000 shares, agrowthof56.2% from the July 31st total of 5,390,000 shares. Based on an average trading volume of 1,420,000 shares, the days-to-cover ratio is presently 5.9 days. Currently,15.1% of the company's shares are sold short. Currently,15.1% of the company's shares are sold short. Based on an average trading volume of 1,420,000 shares, the days-to-cover ratio is presently 5.9 days.

Analysts Set New Price Targets

Several equities analysts have weighed in on KGS shares. Royal Bank Of Canada increased their target price on Kodiak Gas Services from $42.00 to $43.00 and gave the company an "outperform" rating in a research note on Wednesday, August 13th. Barclays increased their price objective 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. reiterated a "buy" rating and set a $43.00 price objective (up from $42.00) on shares of Kodiak Gas Services in a report on Monday, June 23rd. Finally, Mizuho increased their price target on Kodiak Gas Services from $45.00 to $47.00 and gave the company an "outperform" rating in a research report on Friday, August 29th. Nine analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $41.30.

Kodiak Gas Services Price Performance

Shares of KGS traded down $1.19 during midday trading on Friday, hitting $35.34. The company's stock had a trading volume of 1,431,385 shares, compared to its average volume of 1,265,326. Kodiak Gas Services has a one year low of $25.21 and a one year high of $50.43. The company's fifty day simple moving average is $33.52 and its two-hundred day simple moving average is $34.94. The company has a quick ratio of 0.78, a current ratio of 1.10 and a debt-to-equity ratio of 1.89. The stock has a market capitalization of $3.10 billion, a price-to-earnings ratio of 39.26 and a beta of 1.34.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $0.49 earnings per share for the quarter, beating the consensus estimate 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 company had revenue of $322.84 million for the quarter, compared to the consensus estimate of $335.10 million. During the same quarter last year, the business posted $0.06 EPS. Kodiak Gas Services's revenue for the quarter was up 4.2% on a year-over-year basis. 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 Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, August 4th were issued 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 yield of 5.1%. Kodiak Gas Services's payout ratio is presently 200.00%.

Kodiak Gas Services declared that its Board of Directors has initiated a share repurchase plan on Monday, August 11th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 1.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Dynamic Technology Lab Private Ltd increased its position in Kodiak Gas Services by 4.6% in the 2nd quarter. Dynamic Technology Lab Private Ltd now owns 8,180 shares of the company's stock valued at $280,000 after buying an additional 360 shares in the last quarter. Amalgamated Bank grew its holdings in shares of Kodiak Gas Services by 40.0% in the first quarter. Amalgamated Bank now owns 1,554 shares of the company's stock valued at $58,000 after acquiring an additional 444 shares in the last quarter. Captrust Financial Advisors grew its holdings in shares of Kodiak Gas Services by 2.7% in the second quarter. Captrust Financial Advisors now owns 16,925 shares of the company's stock valued at $580,000 after acquiring an additional 448 shares in the last quarter. United Advisor Group LLC grew its holdings in shares of Kodiak Gas Services by 4.4% in the fourth quarter. United Advisor Group LLC now owns 12,281 shares of the company's stock valued at $501,000 after acquiring an additional 519 shares in the last quarter. Finally, CWM LLC lifted its stake in Kodiak Gas Services by 4.3% in the second quarter. CWM LLC now owns 14,804 shares of the company's stock valued at $507,000 after purchasing an additional 608 shares during the last quarter. 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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