Kinetik (NYSE:KNTK) Trading Up 10.9% on Better-Than-Expected Earnings

Kinetik Holdings Inc. (NYSE:KNTK) shares rose 10.9% on Thursday following a stronger than expected earnings report. The company traded as high as $48.37 and last traded at $48.27. Approximately 1,570,784 shares traded hands during mid-day trading, an increase of 16% from the average daily volume of 1,351,496 shares. The stock had previously closed at $43.51.

The company reported $2.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $2.01. The company had revenue of $430.42 million for the quarter. Kinetik had a net margin of 6.70% and a negative return on equity of 5.74%. The business’s quarterly revenue was up 11.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.01 earnings per share.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on KNTK. Mizuho set a $48.00 price target on shares of Kinetik in a research report on Wednesday, October 29th. Citigroup decreased their price objective on shares of Kinetik from $55.00 to $46.00 and set a “buy” rating on the stock in a report on Friday, November 21st. Raymond James Financial set a $46.00 target price on Kinetik in a research report on Monday, January 5th. Wolfe Research downgraded shares of Kinetik from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, January 27th. Finally, Royal Bank Of Canada reduced their target price on shares of Kinetik from $52.00 to $46.00 and set an “outperform” rating on the stock in a report on Wednesday, November 19th. Six analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Kinetik currently has an average rating of “Hold” and a consensus price target of $46.00.

Insider Activity

In related news, insider Matthew Wall sold 8,083 shares of the stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $36.05, for a total transaction of $291,392.15. Following the completion of the sale, the insider directly owned 554,738 shares in the company, valued at $19,998,304.90. This represents a 1.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 3.83% of the company’s stock.

Institutional Trading of Kinetik

Several institutional investors and hedge funds have recently added to or reduced their stakes in KNTK. Comerica Bank grew its position in Kinetik by 91.5% in the first quarter. Comerica Bank now owns 1,532 shares of the company’s stock worth $80,000 after acquiring an additional 732 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Kinetik by 4.2% during the 1st quarter. AQR Capital Management LLC now owns 12,900 shares of the company’s stock worth $670,000 after acquiring an additional 522 shares in the last quarter. Millennium Management LLC boosted 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 in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Kinetik by 27.3% during the 1st 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 purchasing an additional 17,034 shares during the last quarter. Finally, Intech Investment Management LLC boosted its holdings in Kinetik by 14.3% in 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 Trading Up 9.7%

The stock has a market capitalization of $7.71 billion, a PE ratio of 113.67, a price-to-earnings-growth ratio of 1.08 and a beta of 0.73. The firm’s fifty day moving average price is $39.05 and its two-hundred day moving average price is $38.81.

About Kinetik

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.