Kinetik (NYSE:KNTK) Shares Gap Down – Should You Sell?

Kinetik Holdings Inc. (NYSE:KNTK)’s stock price gapped down before the market opened 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.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Royal Bank Of Canada increased their target price on Kinetik from $46.00 to $49.00 and gave the stock an “outperform” rating in a research report on Tuesday, March 10th. Barclays increased their price objective on shares of Kinetik from $43.00 to $44.00 and gave the stock an “equal weight” rating in a report on Thursday, March 19th. Scotiabank boosted their target price on shares of Kinetik from $49.00 to $51.00 and gave the company a “sector outperform” rating in a research note on Tuesday, March 17th. Weiss Ratings restated a “hold (c)” rating on shares of Kinetik in a research report on Thursday, January 22nd. Finally, Citigroup lifted their price target on Kinetik from $46.00 to $51.00 and gave the company a “buy” rating in a report on Monday, March 2nd. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $47.25.

Kinetik Trading Down 4.9%

The stock has a market cap of $7.47 billion, a P/E ratio of 17.92, a price-to-earnings-growth ratio of 1.64 and a beta of 0.70. The stock’s 50-day moving average is $43.88 and its 200-day moving average is $39.61.

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

Insider Transactions at Kinetik

In other Kinetik news, insider Matthew Wall sold 3,222 shares of the company’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $46.92, for a total value of $151,176.24. Following the transaction, the insider owned 585,556 shares of the company’s stock, valued at approximately $27,474,287.52. This represents a 0.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 on Thursday, February 26th. The shares were sold at an average price of $44.85, for a total value of $179,400,000.00. Following the sale, the insider owned 1 shares of the company’s stock, valued at $44.85. This trade represents a 100.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 4,015,831 shares of company stock worth $180,054,928 over the last 90 days. 3.83% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kinetik

A number of institutional investors and hedge funds have recently modified their holdings of KNTK. Vanguard Group Inc. increased its stake in Kinetik by 9.4% in the 4th quarter. Vanguard Group Inc. now owns 5,096,786 shares of the company’s stock worth $183,739,000 after purchasing an additional 439,586 shares in the last quarter. Zimmer Partners LP purchased a new position in shares of Kinetik in the fourth quarter worth approximately $98,611,000. Cohen & Steers Inc. increased its position in shares of Kinetik by 82.5% in the fourth quarter. Cohen & Steers Inc. now owns 1,843,506 shares of the company’s stock worth $66,458,000 after acquiring an additional 833,224 shares in the last quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT raised its holdings in shares of Kinetik by 86.5% during the fourth quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,843,400 shares of the company’s stock valued at $66,455,000 after acquiring an additional 855,000 shares during the period. Finally, Invesco Ltd. lifted its position in shares of Kinetik by 22.4% in the 4th quarter. Invesco Ltd. now owns 1,775,216 shares of the company’s stock valued at $63,997,000 after acquiring an additional 325,251 shares in the last quarter. 21.11% of the stock is owned by institutional investors and hedge funds.

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.