Royal Bank of Canada Begins Coverage on Kinetik (NASDAQ:KNTK)

Royal Bank of Canada assumed coverage on shares of Kinetik (NASDAQ:KNTK) in a report issued on Monday morning, Marketbeat Ratings reports. The brokerage issued an outperform rating and a $40.00 target price on the stock.

Other analysts have also recently issued reports about the company. Citigroup reissued a neutral rating and set a $35.00 price target on shares of Kinetik in a report on Tuesday, December 19th. JPMorgan Chase & Co. upgraded Kinetik from a neutral rating to an overweight rating and raised their price objective for the stock from $38.00 to $40.00 in a research note on Friday, March 8th. Seven analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to data from MarketBeat, the company has an average rating of Hold and a consensus target price of $39.33.

Kinetik Stock Up 1.4 %

KNTK opened at $39.39 on Monday. Kinetik has a 12-month low of $26.32 and a 12-month high of $39.42. The stock has a market cap of $5.96 billion, a price-to-earnings ratio of 17.43, a PEG ratio of 2.53 and a beta of 2.79. The business has a 50 day moving average of $34.49 and a 200-day moving average of $34.54.

Kinetik (NASDAQ:KNTK) last released its quarterly earnings data on Wednesday, February 28th. The company reported $1.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.46 by $1.24. The company had revenue of $348.87 million during the quarter, compared to analysts’ expectations of $301.49 million. Kinetik had a negative return on equity of 49.32% and a net margin of 28.57%. The business’s revenue was up 18.1% on a year-over-year basis. During the same period last year, the firm posted $0.25 earnings per share. As a group, analysts expect that Kinetik will post 2.01 earnings per share for the current year.

Kinetik Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 7th. Investors of record on Thursday, February 22nd were issued a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a dividend yield of 7.62%. The ex-dividend date was Wednesday, February 21st. Kinetik’s dividend payout ratio (DPR) is 132.74%.

Insiders Place Their Bets

In other Kinetik news, insider Jamie Welch acquired 14,814 shares of the company’s stock in a transaction dated Monday, March 18th. The shares were bought at an average cost of $33.75 per share, with a total value of $499,972.50. Following the purchase, the insider now directly owns 3,599,225 shares of the company’s stock, valued at $121,473,843.75. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other Kinetik news, major shareholder Corp Apache sold 13,079,871 shares of the business’s stock in a transaction that occurred on Monday, March 18th. The stock was sold at an average price of $33.75, for a total transaction of $441,445,646.25. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jamie Welch bought 14,814 shares of Kinetik stock in a transaction dated Monday, March 18th. The stock was acquired at an average cost of $33.75 per share, with a total value of $499,972.50. Following the completion of the acquisition, the insider now owns 3,599,225 shares of the company’s stock, valued at $121,473,843.75. The disclosure for this purchase can be found here. In the last three months, insiders have sold 13,090,053 shares of company stock valued at $441,822,170. 3.62% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Kinetik

Institutional investors have recently modified their holdings of the business. Ensign Peak Advisors Inc purchased a new position in Kinetik in the third quarter valued at approximately $31,000. Tower Research Capital LLC TRC bought a new position in Kinetik in the third quarter valued at $37,000. Ronald Blue Trust Inc. bought a new position in Kinetik in the third quarter valued at $37,000. Bartlett & Co. LLC bought a new position in Kinetik in the third quarter valued at $78,000. Finally, UBS Group AG bought a new position in shares of Kinetik during the third quarter valued at about $84,000. 21.11% of the stock is owned by institutional investors.

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.