US Capital Advisors Lifts Earnings Estimates for Kinetik

Key Points

• US Capital Advisors raised Kinetik’s FY2027 EPS estimate to $2.03 from $1.74 and introduced a FY2028 estimate of $2.62, while maintaining a “Strong-Buy” rating.
• Kinetik’s latest quarterly results significantly exceeded expectations, with EPS of $0.64 versus $0.19 expected and revenue of $581.44 million versus $421.48 million; revenue rose 36.3% year over year.
• Analyst sentiment remains broadly positive, with Kinetik holding a consensus “Moderate Buy” rating and a $53.27 price target, though major shareholder sales totaling more than 1 million shares recently may create selling pressure.

Kinetik Holdings Inc. (NYSE:KNTK - Free Report) - Analysts at US Capital Advisors raised their FY2027 earnings per share (EPS) estimates for shares of Kinetik in a research note issued to investors on Thursday, August 20th. US Capital Advisors analyst J. Carreker now anticipates that the company will post earnings of $2.03 per share for the year, up from their prior forecast of $1.74. US Capital Advisors has a "Strong-Buy" rating on the stock. The consensus estimate for Kinetik's current full-year earnings is $1.30 per share. US Capital Advisors also issued estimates for Kinetik's FY2028 earnings at $2.62 EPS.

Other analysts have also recently issued research reports about the stock. Barclays set a $51.00 price objective on shares of Kinetik and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Morgan Stanley reissued an "overweight" rating and set a $70.00 target price (up from $64.00) on shares of Kinetik in a research note on Tuesday, August 18th. Clear Str cut shares of Kinetik from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 17th. Weiss Ratings upgraded shares of Kinetik from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, August 11th. Finally, Mizuho lifted their price target on Kinetik from $48.00 to $51.00 and gave the company an "outperform" rating in a report on Tuesday, April 28th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $53.27.

Kinetik Stock Performance

Shares of KNTK opened at $54.48 on Monday. Kinetik has a 1 year low of $31.33 and a 1 year high of $56.10. The company has a market cap of $8.85 billion, a price-to-earnings ratio of 19.74, a price-to-earnings-growth ratio of 1.35 and a beta of 0.56. The firm has a fifty day moving average of $49.68 and a 200-day moving average of $47.57.

Kinetik (NYSE:KNTK - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.45. The firm had revenue of $581.44 million for the quarter, compared to analyst estimates of $421.48 million. Kinetik had a negative return on equity of 38.96% and a net margin of 26.19%.The firm's revenue for the quarter was up 36.3% on a year-over-year basis. During the same period last year, the company earned $0.33 earnings per share.

Insider Activity at Kinetik

In related news, major shareholder Isq Global Fund Ii Gp Llc sold 235,349 shares of Kinetik stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $50.52, for a total transaction of $11,889,831.48. Following the sale, the insider directly owned 1,691,370 shares in the company, valued at $85,448,012.40. The trade was a 12.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold 1,005,846 shares of company stock worth $52,164,684 over the last quarter. 3.56% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Kinetik

Several large investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in shares of Kinetik by 9.4% during the 4th quarter. Vanguard Group Inc. now owns 5,096,786 shares of the company's stock worth $183,739,000 after buying an additional 439,586 shares in the last quarter. Zimmer Partners LP acquired a new stake in shares of Kinetik in the 4th quarter worth approximately $98,611,000. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT boosted its holdings in shares of Kinetik by 1.7% in the first quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,874,000 shares of the company's stock valued at $90,720,000 after acquiring an additional 30,600 shares in the last quarter. Cohen & Steers Inc. boosted its holdings in shares of Kinetik by 82.5% in the fourth quarter. Cohen & Steers Inc. now owns 1,843,506 shares of the company's stock valued at $66,458,000 after acquiring an additional 833,224 shares in the last quarter. Finally, Invesco Ltd. increased its stake in shares of Kinetik by 22.4% during the fourth quarter. Invesco Ltd. now owns 1,775,216 shares of the company's stock valued at $63,997,000 after acquiring an additional 325,251 shares during the period. Institutional investors and hedge funds own 21.11% of the company's stock.

Trending Headlines about Kinetik

Here are the key news stories impacting Kinetik this week:

• Positive Sentiment: US Capital Advisors raised its EPS forecasts for Kinetik across every reported period, including Q3 2026 to $0.34 from $0.33, Q4 2026 to $0.41 from $0.34, and 2027 quarters to $0.45, $0.47, $0.53 and $0.58. The firm maintained a “Strong-Buy” rating, suggesting greater confidence in Kinetik’s earnings trajectory. Kinetik analyst estimates
• Positive Sentiment: Kinetik’s latest quarterly results exceeded expectations by a wide margin. EPS was $0.64 versus the $0.19 consensus estimate, while revenue reached $581.44 million compared with forecasts of $421.48 million. Revenue increased 36.3% year over year, supporting the bullish analyst revisions. Kinetik earnings results
• Neutral Sentiment: Institutional ownership trends were mixed. Several investors, including Bank of New York Mellon, Pinnacle Holdings and Amundi, initiated or increased positions, but institutional and hedge-fund ownership remains relatively limited at 21.11%.
• Negative Sentiment: Major shareholder ISQ Global Fund II GP LLC sold another 3,107 Kinetik shares for approximately $171,000 on August 20, following a sale of 64,898 shares worth about $3.5 million on August 18. The fund has sold more than 1 million shares in a series of recent transactions, creating potential supply pressure and raising concerns about shareholder conviction. Kinetik major shareholder sales

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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