Kinetik (NYSE:KNTK) Cut to Hold at Zacks Research

Kinetik (NYSE:KNTK) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Tuesday,Zacks.com reports.

KNTK has been the subject of several other reports. Wells Fargo & Company reissued an “overweight” rating and issued a $54.00 price target on shares of Kinetik in a research report on Monday, August 10th. Tudor Pickering began coverage on Kinetik in a research report on Monday, July 20th. They set a “buy” rating and a $57.00 price objective on the stock. Mizuho lifted their target price on Kinetik from $48.00 to $51.00 and gave the company an “outperform” rating in a research note on Tuesday, April 28th. Wall Street Zen raised shares of Kinetik from a “strong sell” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $70.00 price objective (up from $64.00) on shares of Kinetik in a research report on Tuesday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $53.27.

Kinetik Stock Performance

NYSE KNTK opened at $55.05 on Tuesday. The company has a market cap of $8.94 billion, a PE ratio of 19.95, a P/E/G ratio of 1.34 and a beta of 0.56. The firm’s 50 day moving average price is $50.23 and its 200-day moving average price is $47.86. Kinetik has a 52-week low of $31.33 and a 52-week high of $56.10.

Kinetik (NYSE:KNTK) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.19 by $0.45. The company had revenue of $581.44 million during the quarter, compared to the consensus estimate of $421.48 million. Kinetik had a net margin of 26.19% and a negative return on equity of 38.96%. Kinetik’s revenue for the quarter was up 36.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.33 earnings per share. On average, analysts forecast that Kinetik will post 1.3 earnings per share for the current fiscal year.

Insider Activity at Kinetik

In related news, Director Deborah L. Byers sold 2,739 shares of the firm’s stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $51.51, for a total value of $141,085.89. Following the completion of the transaction, the director owned 24,389 shares in the company, valued at $1,256,277.39. This trade represents a 10.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, major shareholder Isq Global Fund Ii Gp Llc sold 6,963 shares of Kinetik stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $55.17, for a total value of $384,148.71. Following the sale, the insider directly owned 918,824 shares of the company’s stock, valued at approximately $50,691,520.08. This represents a 0.75% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 1,012,809 shares of company stock worth $52,548,833. 3.56% of the stock is owned by insiders.

Institutional Investors Weigh In On Kinetik

A number of large investors have recently bought and sold shares of KNTK. GAMMA Investing LLC grew its position in shares of Kinetik by 10.5% in the second quarter. GAMMA Investing LLC now owns 2,882 shares of the company’s stock valued at $139,000 after purchasing an additional 273 shares during the period. ProShare Advisors LLC raised its position in shares of Kinetik by 3.5% during the 4th quarter. ProShare Advisors LLC now owns 8,633 shares of the company’s stock worth $311,000 after purchasing an additional 294 shares during the last quarter. Maryland State Retirement & Pension System lifted its stake in Kinetik by 5.4% in the 4th quarter. Maryland State Retirement & Pension System now owns 6,612 shares of the company’s stock valued at $238,000 after buying an additional 337 shares in the last quarter. Federated Hermes Inc. increased its stake in Kinetik by 0.4% during the 2nd quarter. Federated Hermes Inc. now owns 89,133 shares of the company’s stock worth $3,926,000 after buying an additional 346 shares in the last quarter. Finally, CWM LLC raised its holdings in shares of Kinetik by 89.8% during the fourth quarter. CWM LLC now owns 744 shares of the company’s stock valued at $27,000 after acquiring an additional 352 shares during the last quarter. Hedge funds and other institutional investors own 21.11% of the company’s stock.

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.