Kinetik Holdings Inc. (NASDAQ:KNTK) Announces $0.75 Quarterly Dividend

Kinetik Holdings Inc. (NASDAQ:KNTK) declared a quarterly dividend on Friday, April 19th, Wall Street Journal reports. Shareholders 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 annualized dividend and a yield of 7.70%. The ex-dividend date is Friday, April 26th.

Kinetik has a dividend payout ratio of 130.4% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities 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 Stock Up 0.8 %

Kinetik stock traded up $0.31 during trading hours on Friday, hitting $38.94. 609,510 shares of the company traded hands, compared to its average volume of 571,386. The firm has a market cap of $5.98 billion, a P/E ratio of 17.04, a P/E/G ratio of 2.35 and a beta of 2.80. The firm’s 50-day simple moving average is $36.52 and its two-hundred day simple moving average is $35.08. Kinetik has a 1-year low of $26.32 and a 1-year high of $40.42.

Kinetik (NASDAQ:KNTK) last released its earnings results on Wednesday, February 28th. The company reported $1.70 EPS for the quarter, beating the consensus estimate of $0.46 by $1.24. The firm had revenue of $348.87 million for the quarter, compared to analysts’ expectations of $301.49 million. Kinetik had a net margin of 28.57% and a negative return on equity of 49.32%. Kinetik’s quarterly revenue was up 18.1% on a year-over-year basis. During the same quarter last year, the company earned $0.25 EPS. On average, equities research analysts predict that Kinetik will post 2 earnings per share for the current year.

Analyst Upgrades and Downgrades

KNTK has been the topic of several recent research reports. Royal Bank of Canada began coverage on shares of Kinetik in a research note on Monday, March 25th. They issued an “outperform” rating and a $40.00 price objective on the stock. JPMorgan Chase & Co. raised their target price on shares of Kinetik from $40.00 to $43.00 and gave the stock an “overweight” rating in a report on Wednesday. Seven investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, Kinetik currently has an average rating of “Hold” and an average target price of $39.67.

Insider Buying and Selling

In related news, insider Trevor Howard sold 7,000 shares of the firm’s stock in a transaction that occurred on Friday, March 22nd. The shares were sold at an average price of $37.62, for a total transaction of $263,340.00. Following the completion of the sale, the insider now directly owns 198,411 shares in the company, valued at $7,464,221.82. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In related news, insider Anne Psencik sold 3,182 shares of the firm’s stock in a transaction that occurred on Monday, March 11th. The shares were sold at an average price of $35.57, for a total transaction of $113,183.74. Following the transaction, the insider now owns 247,128 shares of the company’s stock, valued at $8,790,342.96. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Trevor Howard sold 7,000 shares of the firm’s stock in a transaction that occurred on Friday, March 22nd. The shares were sold at an average price of $37.62, for a total transaction of $263,340.00. Following the transaction, the insider now directly owns 198,411 shares in the company, valued at approximately $7,464,221.82. The disclosure for this sale can be found here. Over the last three months, insiders sold 13,095,803 shares of company stock worth $442,051,135. 3.62% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kinetik

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KNTK. Jane Street Group LLC bought a new position in shares of Kinetik in the third quarter valued at approximately $237,000. Legal & General Group Plc raised its position in shares of Kinetik by 10.5% in the fourth quarter. Legal & General Group Plc now owns 6,770 shares of the company’s stock valued at $224,000 after purchasing an additional 642 shares during the period. Cresset Asset Management LLC raised its position in shares of Kinetik by 9.0% in the fourth quarter. Cresset Asset Management LLC now owns 6,576 shares of the company’s stock valued at $220,000 after purchasing an additional 541 shares during the period. Schonfeld Strategic Advisors LLC bought a new position in shares of Kinetik in the second quarter valued at approximately $214,000. Finally, Tower Research Capital LLC TRC raised its position in shares of Kinetik by 112.9% in the fourth quarter. Tower Research Capital LLC TRC now owns 5,630 shares of the company’s stock valued at $188,000 after purchasing an additional 2,986 shares during the period. Institutional investors 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.