Kodiak Gas Services (NYSE:KGS) Shares Gap Down – Here’s Why

Shares of Kodiak Gas Services, Inc. (NYSE:KGS) gapped down before the market opened on Monday . The stock had previously closed at $35.32, but opened at $34.00. Kodiak Gas Services shares last traded at $33.76, with a volume of 2,393,633 shares trading hands.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on KGS shares. JPMorgan Chase & Co. restated a “buy” rating and issued a $43.00 price objective (up previously from $42.00) on shares of Kodiak Gas Services in a research note on Monday, June 23rd. Mizuho increased their target price on Kodiak Gas Services from $45.00 to $47.00 and gave the stock an “outperform” rating in a report on Friday, August 29th. Barclays increased their price objective on Kodiak Gas Services from $36.00 to $37.00 and gave the company an “equal weight” rating in a research report on Thursday, August 14th. Finally, Royal Bank Of Canada increased their price target on shares of Kodiak Gas Services from $42.00 to $43.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 13th. Nine research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $41.30.

Kodiak Gas Services Stock Performance

The company has a market capitalization of $2.97 billion, a price-to-earnings ratio of 37.65 and a beta of 1.34. The company has a current ratio of 1.10, a quick ratio of 0.78 and a debt-to-equity ratio of 1.89. The stock has a 50-day simple moving average of $33.52 and a 200-day simple moving average of $34.94.

Kodiak Gas Services (NYSE:KGS) last released its earnings results on Wednesday, August 6th. The company reported $0.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.46 by $0.03. Kodiak Gas Services had a net margin of 6.48% and a return on equity of 10.35%. The company had revenue of $322.84 million during the quarter, compared to the consensus estimate of $335.10 million. During the same quarter in the prior year, the firm earned $0.06 EPS. The company’s revenue was up 4.2% compared to the same quarter last year. On average, analysts anticipate that Kodiak Gas Services, Inc. will post 1.12 earnings per share for the current year.

Kodiak Gas Services Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, August 14th. Investors of record on Monday, August 4th were given a dividend of $0.45 per share. The ex-dividend date was Monday, August 4th. This represents a $1.80 annualized dividend and a yield of 5.3%. Kodiak Gas Services’s dividend payout ratio is presently 200.00%.

Kodiak Gas Services announced that its Board of Directors has authorized a stock buyback plan on Monday, August 11th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 1.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Squarepoint Ops LLC lifted its stake in Kodiak Gas Services by 545.8% during the 2nd quarter. Squarepoint Ops LLC now owns 228,073 shares of the company’s stock valued at $7,816,000 after acquiring an additional 192,754 shares during the period. Tyler Stone Wealth Management acquired a new position in Kodiak Gas Services in the second quarter valued at $1,068,000. FORA Capital LLC purchased a new position in Kodiak Gas Services during the 2nd quarter worth $499,000. Tower Research Capital LLC TRC boosted its position in shares of Kodiak Gas Services by 37.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,779 shares of the company’s stock worth $267,000 after buying an additional 2,100 shares in the last quarter. Finally, Captrust Financial Advisors increased its stake in 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 purchasing an additional 448 shares during the last quarter. Institutional investors own 24.95% of the company’s stock.

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.