Kodiak Gas Services (NYSE:KGS) Shares Gap Down on Disappointing Earnings

Shares of Kodiak Gas Services, Inc. (NYSE:KGS) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $56.86, but opened at $53.90. Kodiak Gas Services shares last traded at $56.8650, with a volume of 232,646 shares traded.

The company reported $0.55 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.12). Kodiak Gas Services had a return on equity of 13.12% and a net margin of 5.13%.The business had revenue of $391.12 million during the quarter, compared to analyst estimates of $386.30 million. During the same period in the previous year, the business posted $0.43 earnings per share. The firm’s quarterly revenue was up 21.2% on a year-over-year basis.

Kodiak Gas Services Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Monday, August 17th will be issued a $0.49 dividend. This represents a $1.96 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date is Monday, August 17th. Kodiak Gas Services’s payout ratio is presently 264.86%.

Analyst Ratings Changes

A number of research firms have weighed in on KGS. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Kodiak Gas Services in a research note on Friday, May 29th. Piper Sandler assumed coverage on shares of Kodiak Gas Services in a research note on Tuesday, July 28th. They set an “overweight” rating and a $78.00 price objective for the company. Stifel Nicolaus upped their price objective on Kodiak Gas Services from $84.00 to $90.00 and gave the stock a “buy” rating in a report on Tuesday, July 14th. Barclays cut their target price on Kodiak Gas Services from $76.00 to $72.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 8th. Finally, Citigroup lifted their target price on Kodiak Gas Services from $63.00 to $86.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Ten research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $79.33.

Insider Buying and Selling at Kodiak Gas Services

In other Kodiak Gas Services news, CAO Ewan William Hamilton sold 2,729 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $68.62, for a total value of $187,263.98. Following the transaction, the chief accounting officer directly owned 31,617 shares of the company’s stock, valued at $2,169,558.54. This trade represents a 7.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Pedro R. Buhigas sold 4,625 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $67.78, for a total value of $313,482.50. Following the completion of the sale, the insider owned 38,454 shares of the company’s stock, valued at approximately $2,606,412.12. This trade represents a 10.74% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 13,523 shares of company stock worth $921,319. 0.64% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kodiak Gas Services

A number of large investors have recently added to or reduced their stakes in KGS. Crown Advisors Management Inc. acquired a new stake in shares of Kodiak Gas Services during the second quarter valued at about $4,508,000. Bank of New York Mellon Corp acquired a new stake in shares of Kodiak Gas Services during the 2nd quarter valued at approximately $73,623,000. State of Wyoming acquired a new stake in shares of Kodiak Gas Services during the second quarter worth $537,000. GSA Capital Partners LLP acquired a new stake in Kodiak Gas Services during the second quarter worth about $657,000. Finally, GAMMA Investing LLC raised its position in shares of Kodiak Gas Services by 20.8% during the 2nd quarter. GAMMA Investing LLC now owns 2,646 shares of the company’s stock worth $199,000 after purchasing an additional 456 shares during the period. 24.95% of the stock is owned by institutional investors and hedge funds.

Kodiak Gas Services Price Performance

The company has a debt-to-equity ratio of 2.38, a current ratio of 1.28 and a quick ratio of 0.99. The company has a 50-day simple moving average of $66.28 and a two-hundred day simple moving average of $60.90. The stock has a market capitalization of $5.07 billion, a price-to-earnings ratio of 77.21, a price-to-earnings-growth ratio of 0.85 and a beta of 0.97.

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. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings.