Kinetik Holdings Inc. Declares Quarterly Dividend of $0.75 (NASDAQ:KNTK)

Kinetik Holdings Inc. (NASDAQ:KNTK) announced a quarterly dividend on Thursday, April 18th, Wall Street Journal reports. Shareholders of record on Monday, April 29th will be paid a dividend of 0.75 per share on Thursday, May 9th. This represents a $3.00 dividend on an annualized basis and a yield of 7.77%. The ex-dividend date of this dividend is Friday, April 26th.

Kinetik has a dividend payout ratio of 129.3% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Kinetik to earn $2.26 per share next year, which means the company may not be able to cover its $3.00 annual dividend with an expected future payout ratio of 132.7%.

Kinetik Price Performance

KNTK stock opened at $38.62 on Wednesday. The stock has a market capitalization of $5.93 billion, a price-to-earnings ratio of 17.26, a P/E/G ratio of 2.38 and a beta of 2.80. Kinetik has a fifty-two week low of $26.32 and a fifty-two week high of $40.42. The business has a fifty day moving average price of $36.89 and a 200 day moving average price of $35.25.

Kinetik (NASDAQ:KNTK) last released its earnings results on Wednesday, February 28th. The company reported $1.70 earnings per share for the quarter, topping analysts’ consensus estimates of $0.46 by $1.24. Kinetik had a negative return on equity of 49.32% and a net margin of 28.57%. The company had revenue of $348.87 million during the quarter, compared to the consensus estimate of $301.49 million. During the same quarter in the previous year, the company posted $0.25 earnings per share. The firm’s quarterly revenue was up 18.1% on a year-over-year basis. On average, equities analysts expect that Kinetik will post 2 earnings per share for the current fiscal year.

Insider Buying and Selling at Kinetik

In related news, insider Anne Psencik sold 3,182 shares of the firm’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $35.57, for a total value of $113,183.74. Following the completion of the sale, the insider now directly owns 247,128 shares in the company, valued at approximately $8,790,342.96. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In related news, insider Anne Psencik sold 3,182 shares of the company’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $35.57, for a total value of $113,183.74. Following the transaction, the insider now directly owns 247,128 shares in the company, valued at $8,790,342.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Matthew Wall sold 5,750 shares of the business’s stock in a transaction dated Thursday, March 28th. The shares were sold at an average price of $39.82, for a total value of $228,965.00. Following the completion of the transaction, the insider now directly owns 530,066 shares of the company’s stock, valued at approximately $21,107,228.12. The disclosure for this sale can be found here. Insiders sold a total of 13,095,803 shares of company stock worth $442,051,135 over the last quarter. 3.71% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on KNTK. JPMorgan Chase & Co. boosted their target price on Kinetik from $40.00 to $43.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 17th. Barclays began coverage on shares of Kinetik in a report on Monday. They set an “equal weight” rating and a $40.00 price objective on the stock. Mizuho upped their target price on shares of Kinetik from $39.00 to $42.00 and gave the stock a “buy” rating in a research note on Tuesday. Finally, Royal Bank of Canada assumed coverage on Kinetik in a research note on Monday, March 25th. They issued an “outperform” rating and a $40.00 price target on the stock. Seven investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $40.00.

About Kinetik

Kinetik Holdings Inc operates as a midstream company in the Texas Delaware Basin. The company operates through two segments, Midstream Logistics and Pipeline Transportation. It provides gathering, transportation, compression, processing, stabilization, treating, storage, and transportation services for companies that produce natural gas, natural gas liquids, and crude oil; and water gathering and disposal services.