Kinetik (NYSE:KNTK) Reaches New 52-Week High – What’s Next?

Kinetik Holdings Inc. (NYSE:KNTK) reached a new 52-week high on Tuesday . The company traded as high as $54.84 and last traded at $54.57, with a volume of 55075 shares. The stock had previously closed at $52.98.

Kinetik News Summary

Here are the key news stories impacting Kinetik this week:

• Positive Sentiment: Kinetik’s most recent quarterly results were significantly better than expected. Earnings per share reached $0.64 versus the $0.19 consensus estimate, while revenue rose 36.3% year over year to $581.4 million, well above forecasts. The earnings beat and continued revenue growth help support the stock’s recent strength.
• Positive Sentiment: Several analysts remain constructive on Kinetik, including JPMorgan and RBC, which have assigned $57 price targets and overweight or outperform ratings. The broader analyst consensus is “Moderate Buy,” although the average target is close to the current trading level.
• Neutral Sentiment: Kinetik’s shares are trading above both their 50-day and 200-day moving averages, reflecting strong recent momentum. However, the stock is also near its one-year high, which may limit near-term upside after the post-earnings advance.
• Negative Sentiment: Major shareholder ISQ Global Fund II GP LLC has continued reducing its position, selling 113,075 shares on August 13, 112,160 shares on August 14 and 135,102 shares on August 17. The three reported sales totaled 360,337 shares and were worth approximately $19.0 million. Additional sales earlier in August bring the disclosed selling activity to more than 1 million shares, potentially creating an overhang and signaling that the shareholder is taking profits. Kinetik major shareholder stock sale
• Negative Sentiment: Clear Street reportedly lowered its view on Kinetik, citing limited upside after the stock’s post-earnings gain. This adds to concerns that much of the recent earnings optimism may already be reflected in the share price. Clear Street cuts Kinetik with limited upside

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Citigroup reiterated a “buy” rating and set a $55.00 price objective (up from $52.00) on shares of Kinetik in a research note on Tuesday, August 11th. Zacks Research upgraded shares of Kinetik from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 27th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $57.00 price target (up from $56.00) on shares of Kinetik in a report on Tuesday, August 11th. Mizuho lifted their price target on shares of Kinetik from $48.00 to $51.00 and gave the stock an “outperform” rating in a research note on Tuesday, April 28th. Finally, Wells Fargo & Company reiterated an “overweight” rating and issued a $54.00 price objective on shares of Kinetik in a report on Monday, August 10th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $53.27.

Kinetik Stock Performance

The company’s fifty day simple moving average is $49.07 and its two-hundred day simple moving average is $47.18. The company has a market capitalization of $8.82 billion, a price-to-earnings ratio of 19.67, a price-to-earnings-growth ratio of 1.32 and a beta of 0.56.

Kinetik (NYSE:KNTK) last issued its earnings results on Wednesday, August 5th. The company reported $0.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.19 by $0.45. Kinetik had a net margin of 26.19% and a negative return on equity of 38.96%. The business had revenue of $581.44 million for the quarter, compared to analyst estimates of $421.48 million. During the same quarter in the prior year, the business posted $0.33 EPS. The company’s revenue for the quarter was up 36.3% on a year-over-year basis. Sell-side analysts anticipate that Kinetik Holdings Inc. will post 1.3 EPS for the current year.

Insider Buying and Selling

In other news, major shareholder Isq Global Fund Ii Gp Llc sold 235,349 shares of the company’s stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $50.52, for a total transaction of $11,889,831.48. Following the completion of the transaction, the insider owned 1,691,370 shares in the company, valued at approximately $85,448,012.40. This represents a 12.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Deborah L. Byers sold 2,739 shares of Kinetik stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $51.51, for a total value of $141,085.89. Following the sale, the director directly owned 24,389 shares in the company, valued at approximately $1,256,277.39. This trade represents a 10.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 937,841 shares of company stock valued at $48,468,322 in the last 90 days. Insiders own 3.56% of the company’s stock.

Institutional Trading of Kinetik

Several hedge funds have recently added to or reduced their stakes in KNTK. Vanguard Group Inc. boosted its position in Kinetik by 9.4% during the 4th quarter. Vanguard Group Inc. now owns 5,096,786 shares of the company’s stock worth $183,739,000 after acquiring an additional 439,586 shares during the period. Zimmer Partners LP bought a new position in shares of Kinetik in the fourth quarter worth $98,611,000. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT increased its holdings in shares of Kinetik by 1.7% during the first quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,874,000 shares of the company’s stock valued at $90,720,000 after purchasing an additional 30,600 shares during the period. Cohen & Steers Inc. increased its holdings in shares of Kinetik by 82.5% during the fourth quarter. Cohen & Steers Inc. now owns 1,843,506 shares of the company’s stock valued at $66,458,000 after purchasing an additional 833,224 shares during the period. Finally, Invesco Ltd. raised its stake in shares of Kinetik by 22.4% during the fourth quarter. Invesco Ltd. now owns 1,775,216 shares of the company’s stock valued at $63,997,000 after purchasing an additional 325,251 shares in 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.