Kodiak Gas Services (NYSE:KGS) released its quarterly earnings results on February 20, 2024, reporting earnings per share (EPS) of $0.40. This figure fell short of analysts’ consensus estimate of $0.53 by $0.13, according to Zacks. The company recorded a return on equity of 10.37% and a net margin of 5.84%. Despite the earnings miss, Kodiak generated revenues of $332.87 million during the quarter, surpassing expectations of $330.95 million. This represents a significant increase of 7.6% compared to $0.21 EPS during the same period last year.
Stock Performance and Financial Metrics
On the day following the earnings announcement, Kodiak’s stock price rose by $1.53, reaching $54.28. The trading volume was 1,158,430 shares, which is below the average volume of 1,601,952 shares. Key financial ratios include a quick ratio of 0.69, a current ratio of 0.98, and a debt-to-equity ratio of 2.08. The company’s market capitalization stands at approximately $4.71 billion, with a price-to-earnings (P/E) ratio of 67.86 and a beta value of 1.31. Over the past year, Kodiak’s stock has fluctuated between a low of $29.25 and a high of $55.00.
In addition to its earnings report, Kodiak Gas Services announced a quarterly dividend of $0.49, which was paid to stockholders of record on February 13, 2024. This dividend yields approximately 3.6%, translating to an annualized payout of $1.96. The company’s dividend payout ratio is notably high at 245.00%.
Institutional Investment Activity
Recent institutional trading activity indicates increased interest in Kodiak Gas Services. Invesco Ltd. raised its stake in the company by 20.4% during the fourth quarter, acquiring an additional 1,287,485 shares and bringing its total holdings to 7,593,274 shares, valued at $283,988,000. Zimmer Partners LP also expanded its position by 45.7%, now owning 4,271,553 shares worth $159,756,000 after purchasing an additional 1,339,849 shares.
Other notable increases in holdings include State Street Corp, which lifted its stake by 31.8%, and Dimensional Fund Advisors LP, which boosted its position by 14.5%. Goldman Sachs Group Inc. significantly increased its investment by 58.3% in the first quarter, now holding 1,983,360 shares valued at $73,979,000. Collectively, institutional investors own approximately 24.95% of Kodiak’s shares.
Kodiak Gas Services operates within the oil and gas sector in the United States, focusing on contract compression infrastructure. The company has two primary segments: Compression Operations, which manages both company-owned and customer-owned compression infrastructure, and Other Services, which provides various contract services including maintenance and construction.
Overall, while Kodiak Gas Services faced a setback in its earnings per share, the company demonstrated solid revenue growth and continues to attract significant institutional investment, reflecting confidence in its operational capabilities and market position.
