Kinetik (NYSE:KNTK) Shares Gap Down – Here’s Why

Kinetik Holdings Inc. (NYSE:KNTK) gapped down prior to trading on Wednesday . The stock had previously closed at $48.41, but opened at $46.74. Kinetik shares last traded at $46.14, with a volume of 306,176 shares changing hands.

Analyst Ratings Changes

KNTK has been the topic of a number of recent research reports. Wells Fargo & Company upgraded Kinetik from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $47.00 to $52.00 in a research note on Wednesday, March 25th. Raymond James Financial set a $46.00 target price on Kinetik in a report on Monday, January 5th. Wolfe Research cut Kinetik from an “outperform” rating to a “peer perform” rating in a report on Tuesday, January 27th. Truist Financial started coverage on shares of Kinetik in a research note on Tuesday, March 24th. They set a “buy” rating and a $53.00 price objective on the stock. Finally, Citigroup upped their target price on shares of Kinetik from $46.00 to $51.00 and gave the company a “buy” rating in a research note on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $47.25.

Kinetik Price Performance

The business’s 50-day moving average price is $43.88 and its two-hundred day moving average price is $39.61. The firm has a market cap of $7.47 billion, a price-to-earnings ratio of 17.92, a P/E/G ratio of 1.64 and a beta of 0.70.

Kinetik (NYSE:KNTK) last posted its quarterly earnings results on Thursday, February 26th. The company reported $2.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $2.01. The firm had revenue of $430.42 million for the quarter. Kinetik had a net margin of 29.23% and a negative return on equity of 32.70%. The company’s revenue was up 11.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.01 earnings per share.

Insider Activity at Kinetik

In other news, insider Matthew Wall sold 8,083 shares of the stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $36.05, for a total transaction of $291,392.15. Following the transaction, the insider owned 554,738 shares of the company’s stock, valued at approximately $19,998,304.90. This trade represents a 1.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Isq Global Fund Ii Gp Llc sold 4,000,000 shares of the stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $44.85, for a total value of $179,400,000.00. Following the transaction, the insider directly owned 1 shares in the company, valued at approximately $44.85. This represents a 100.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 4,015,831 shares of company stock worth $180,054,928. 3.83% of the stock is currently owned by company insiders.

Institutional Trading of Kinetik

Several institutional investors have recently added to or reduced their stakes in the business. Comerica Bank boosted its holdings in shares of Kinetik by 91.5% in the 1st quarter. Comerica Bank now owns 1,532 shares of the company’s stock valued at $80,000 after buying an additional 732 shares during the period. AQR Capital Management LLC lifted its holdings in Kinetik by 4.2% in the first quarter. AQR Capital Management LLC now owns 12,900 shares of the company’s stock worth $670,000 after acquiring an additional 522 shares during the last quarter. Millennium Management LLC lifted its holdings in Kinetik by 88.7% in the first quarter. Millennium Management LLC now owns 132,533 shares of the company’s stock worth $6,884,000 after acquiring an additional 62,306 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Kinetik by 27.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 79,532 shares of the company’s stock valued at $4,131,000 after acquiring an additional 17,034 shares during the period. Finally, Intech Investment Management LLC grew its holdings in shares of Kinetik by 14.3% during the first quarter. Intech Investment Management LLC now owns 22,114 shares of the company’s stock valued at $1,149,000 after purchasing an additional 2,766 shares during the last quarter. 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.