US Capital Advisors Reduces Earnings Estimates for Kinetik

Key Points

• US Capital Advisors lowered its Q1 2027 earnings estimate for Kinetik to $0.36 per share from $0.38, while keeping a Strong-Buy rating on the stock. The firm also projected $2.22 EPS for FY2028.
• Kinetik recently missed analyst expectations in its latest quarterly report, posting a loss of $0.07 per share versus the expected $0.16 profit. Revenue came in at $409.98 million, down 7.5% from a year earlier.
• Analyst sentiment remains mixed but constructive overall, with an average rating of Moderate Buy and a consensus price target of $48.92. Shares opened at $45.51, below the 52-week high of $51.51.

Kinetik Holdings Inc. (NYSE:KNTK - Free Report) - Stock analysts at US Capital Advisors dropped their Q1 2027 earnings estimates for shares of Kinetik in a note issued to investors on Friday, May 29th. US Capital Advisors analyst J. Carreker now anticipates that the company will post earnings of $0.36 per share for the quarter, down from their prior forecast of $0.38. US Capital Advisors currently has a "Strong-Buy" rating on the stock. The consensus estimate for Kinetik's current full-year earnings is $0.78 per share. US Capital Advisors also issued estimates for Kinetik's Q2 2027 earnings at $0.42 EPS, Q3 2027 earnings at $0.47 EPS, Q4 2027 earnings at $0.50 EPS and FY2028 earnings at $2.22 EPS.

Kinetik (NYSE:KNTK - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported ($0.07) earnings per share for the quarter, missing analysts' consensus estimates of $0.16 by ($0.23). The business had revenue of $409.98 million for the quarter. Kinetik had a negative return on equity of 36.36% and a net margin of 28.58%.The business's quarterly revenue was down 7.5% compared to the same quarter last year. During the same period last year, the firm earned $0.05 EPS.

Other equities analysts have also recently issued reports about the company. Zacks Research upgraded Kinetik from a "strong sell" rating to a "hold" rating in a report on Thursday, March 26th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $50.00 target price (up from $49.00) on shares of Kinetik in a report on Thursday, April 16th. Truist Financial assumed coverage on Kinetik in a research report on Tuesday, March 24th. They issued a "buy" rating and a $53.00 price target for the company. Wall Street Zen cut Kinetik from a "sell" rating to a "strong sell" rating in a research note on Sunday, May 17th. Finally, Weiss Ratings lowered shares of Kinetik from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, May 11th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Kinetik currently has an average rating of "Moderate Buy" and an average price target of $48.92.

Kinetik Stock Performance

NYSE KNTK opened at $45.51 on Tuesday. Kinetik has a 1 year low of $31.33 and a 1 year high of $51.51. The business's fifty day moving average is $48.01 and its two-hundred day moving average is $42.16. The stock has a market capitalization of $7.39 billion, a P/E ratio of 18.58, a P/E/G ratio of 1.89 and a beta of 0.57.

Insider Activity at Kinetik

In other news, major shareholder Isq Global Fund Ii Gp Llc sold 534,564 shares of the company's stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $50.52, for a total value of $27,006,173.28. Following the transaction, the insider directly owned 428,894 shares of the company's stock, valued at approximately $21,667,724.88. This represents a 55.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Steven Stellato sold 2,907 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $46.92, for a total value of $136,396.44. Following the sale, the insider owned 393,382 shares of the company's stock, valued at approximately $18,457,483.44. This represents a 0.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 1,078,855 shares of company stock worth $53,535,999. Corporate insiders own 3.56% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Public Sector Pension Investment Board acquired a new position in Kinetik in the third quarter worth approximately $7,277,000. Principal Financial Group Inc. acquired a new stake in Kinetik in the third quarter valued at approximately $9,017,000. Advisors Capital Management LLC lifted its stake in Kinetik by 4.3% in the third quarter. Advisors Capital Management LLC now owns 632,387 shares of the company's stock valued at $27,028,000 after acquiring an additional 26,103 shares during the last quarter. SageView Advisory Group LLC bought a new stake in Kinetik in the third quarter worth approximately $1,606,000. Finally, Vanguard Group Inc. increased its stake 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 purchasing an additional 439,586 shares during the last quarter. 21.11% of the stock is owned by institutional investors and hedge funds.

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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