Kodiak Gas Services (NYSE:KGS) Shares Gap Down Following Weak Earnings

Shares of Kodiak Gas Services, Inc. (NYSE:KGS) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $40.56, but opened at $36.61. Kodiak Gas Services shares last traded at $37.64, with a volume of 453,306 shares trading hands.

The company reported $0.27 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.15). Kodiak Gas Services had a return on equity of 7.91% and a net margin of 2.23%. The business had revenue of $309.52 million for the quarter, compared to analyst estimates of $323.82 million.

Kodiak Gas Services Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 21st. Shareholders of record on Friday, February 14th were issued a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 4.82%. The ex-dividend date of this dividend was Friday, February 14th. Kodiak Gas Services’s dividend payout ratio is 565.52%.

Analyst Ratings Changes

Several equities analysts have commented on KGS shares. Royal Bank of Canada upped their price objective on shares of Kodiak Gas Services from $35.00 to $40.00 and gave the company an “outperform” rating in a report on Monday, November 11th. Mizuho increased their price target on shares of Kodiak Gas Services from $47.00 to $55.00 and gave the company an “outperform” rating in a report on Monday, February 3rd. JPMorgan Chase & Co. raised their price objective on shares of Kodiak Gas Services from $34.00 to $42.00 and gave the stock a “neutral” rating in a research report on Friday, November 29th. Truist Financial upped their target price on Kodiak Gas Services from $35.00 to $40.00 and gave the company a “buy” rating in a research report on Friday, November 8th. Finally, Raymond James increased their target price on Kodiak Gas Services from $35.00 to $39.00 and gave the stock an “outperform” rating in a research note on Friday, November 8th. Two equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. Based on data from MarketBeat.com, Kodiak Gas Services has a consensus rating of “Moderate Buy” and a consensus price target of $41.09.

Insider Activity

In other Kodiak Gas Services news, major shareholder Frontier Topco Partnership, L. sold 3,728,677 shares of the firm’s stock in a transaction dated Thursday, January 30th. The shares were sold at an average price of $47.50, for a total value of $177,112,157.50. Following the transaction, the insider now directly owns 34,771,323 shares of the company’s stock, valued at $1,651,637,842.50. This trade represents a 9.68 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.18% of the company’s stock.

Institutional Trading of Kodiak Gas Services

Large investors have recently made changes to their positions in the company. Principal Financial Group Inc. acquired a new position in Kodiak Gas Services during the third quarter valued at approximately $610,000. Victory Capital Management Inc. bought a new position in shares of Kodiak Gas Services in the 3rd quarter valued at $2,974,000. Royce & Associates LP acquired a new position in shares of Kodiak Gas Services during the 3rd quarter worth $3,770,000. TSA Wealth Managment LLC lifted its position in shares of Kodiak Gas Services by 30.9% during the 3rd quarter. TSA Wealth Managment LLC now owns 84,550 shares of the company’s stock worth $2,452,000 after buying an additional 19,974 shares during the last quarter. Finally, Chesapeake Capital Corp IL acquired a new stake in Kodiak Gas Services in the third quarter valued at about $603,000. Institutional investors and hedge funds own 24.95% of the company’s stock.

Kodiak Gas Services Stock Performance

The company has a debt-to-equity ratio of 1.86, a current ratio of 1.27 and a quick ratio of 0.93. The stock has a market cap of $2.98 billion, a P/E ratio of 117.26 and a beta of 1.30. The stock has a 50-day simple moving average of $44.44 and a 200-day simple moving average of $37.12.

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.