Kinetik Holdings Inc. (KNTK) to Issue Quarterly Dividend of $0.75 on May 9th

Kinetik Holdings Inc. (NASDAQ:KNTK) announced a quarterly dividend on Thursday, April 18th, Wall Street Journal reports. Stockholders of record on Monday, April 29th will be given a dividend of 0.75 per share on Thursday, May 9th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 7.70%. The ex-dividend date of this dividend is Friday, April 26th.

Kinetik has a payout ratio of 129.3% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Kinetik to earn $2.26 per share next year, which means the company may not be able to cover its $3.00 annual dividend with an expected future payout ratio of 132.7%.

Kinetik Price Performance

NASDAQ KNTK traded up $0.31 on Friday, hitting $38.94. The company had a trading volume of 609,531 shares, compared to its average volume of 607,963. The company’s fifty day moving average price is $36.64 and its 200-day moving average price is $35.12. The company has a market capitalization of $5.98 billion, a PE ratio of 17.09, a PEG ratio of 2.35 and a beta of 2.80. Kinetik has a 12-month low of $26.32 and a 12-month high of $40.42.

Kinetik (NASDAQ:KNTK) last posted its quarterly earnings data on Wednesday, February 28th. The company reported $1.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $1.24. The company had revenue of $348.87 million for 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%. Kinetik’s revenue was up 18.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.25 EPS. On average, sell-side analysts anticipate that Kinetik will post 2 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on KNTK shares. JPMorgan Chase & Co. upped their price target on Kinetik from $40.00 to $43.00 and gave the company an “overweight” rating in a research report on Wednesday. Royal Bank of Canada assumed coverage on Kinetik in a research note on Monday, March 25th. They issued an “outperform” rating and a $40.00 target price for the company. Seven research analysts have rated the stock with a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $39.67.

Insider Buying and Selling

In other news, insider Anne Psencik sold 3,182 shares of the company’s stock in a transaction on Monday, March 11th. The stock was sold at an average price of $35.57, for a total transaction of $113,183.74. Following the sale, the insider now owns 247,128 shares of the company’s stock, valued at $8,790,342.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, insider Jamie Welch bought 14,814 shares of the company’s stock in a transaction that occurred on Monday, March 18th. The shares were purchased at an average cost of $33.75 per share, with a total value of $499,972.50. Following the transaction, the insider now directly owns 3,599,225 shares of the company’s stock, valued at approximately $121,473,843.75. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Anne Psencik sold 3,182 shares of Kinetik stock in a transaction on Monday, March 11th. The stock was sold at an average price of $35.57, for a total transaction of $113,183.74. Following the sale, the insider now owns 247,128 shares in the company, valued at $8,790,342.96. The disclosure for this sale can be found here. Insiders have sold a total of 13,095,803 shares of company stock valued at $442,051,135 in the last ninety days. Company insiders own 3.62% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Jane Street Group LLC acquired a new position in Kinetik in the third quarter valued at $237,000. Legal & General Group Plc grew its holdings in shares of Kinetik by 10.5% during the fourth quarter. Legal & General Group Plc now owns 6,770 shares of the company’s stock worth $224,000 after buying an additional 642 shares during the last quarter. Cresset Asset Management LLC increased its position in Kinetik by 9.0% in the 4th quarter. Cresset Asset Management LLC now owns 6,576 shares of the company’s stock valued at $220,000 after acquiring an additional 541 shares during the period. Schonfeld Strategic Advisors LLC acquired a new position in Kinetik in the 2nd quarter valued at about $214,000. Finally, Tower Research Capital LLC TRC raised its stake in Kinetik by 112.9% during the 4th quarter. Tower Research Capital LLC TRC now owns 5,630 shares of the company’s stock valued at $188,000 after acquiring an additional 2,986 shares during the last quarter. Institutional investors and hedge funds own 21.11% of the company’s stock.

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.