In a significant development for investors tracking the energy sector, US Capital Advisors recently revised its earnings per share estimates for Kinetik Holdings Inc. (NYSE:KNTK), signaling a potential shift in the financial outlook for the midstream company. This adjustment reflects ongoing scrutiny and evolving market conditions influencing expert projections.
Specifically, research analysts at US Capital Advisors, led by J. Carreker, reduced their second-quarter 2025 EPS forecast for Kinetik to $0.23, a notable decrease from their prior anticipation of $0.33. Despite this downward revision, US Capital Advisors maintains a “Moderate Buy” rating on Kinetik stock, also issuing a Q4 2025 EPS estimate of $0.58, indicating a mixed sentiment for future performance.
Kinetik has been a frequent subject of analyst reports, showcasing diverse perspectives across the financial community. Scotiabank previously increased its price target to $57.00 with a “sector outperform” rating, while Citigroup reaffirmed a “buy.” Conversely, UBS Group initiated coverage with a “neutral” rating and a $49.00 objective, and the Royal Bank of Canada lowered its target to $55.00 while maintaining an “outperform.” This spectrum of opinions culminates in an average “Moderate Buy” rating and a consensus price target of $55.56 based on MarketBeat data.
From a market performance standpoint, Kinetik shares recently opened at $42.73. The company has navigated a 12-month low of $37.85 and a high of $67.60, demonstrating significant volatility. With a current market capitalization of $6.75 billion, a PE ratio of 44.98, and a beta of 3.00, Kinetik exhibits characteristics of a growth-oriented stock with higher market sensitivity. Its fifty-day moving average price stands at $43.26, while its 200-day moving average is $49.36, suggesting recent price pressure.
Kinetik’s most recent quarterly earnings, reported on May 7th, revealed an EPS of $0.05, missing the consensus estimate of $0.29 by a significant margin. The firm’s revenue for the quarter was $443.26 million, also falling short of analysts’ expectations of $466.54 million. Despite these misses, Kinetik’s quarterly revenue saw a 29.8% increase year-over-year, alongside a net margin of 10.74%, though it recorded a negative return on equity of 8.05%.
Institutional investors and hedge funds have actively adjusted their positions in Kinetik, reflecting their strategic investment approaches. Vanguard Group Inc., Zimmer Partners LP, Invesco Ltd., Westwood Holdings Group Inc., and Kayne Anderson Capital Advisors LP are among the significant entities that have either increased their holdings or acquired new stakes in the company, collectively owning 21.11% of Kinetik’s stock.
Further emphasizing the dynamic nature of Kinetik’s stock, a major shareholder, Isq Global Fund Ii Gp Llc, recently divested a substantial portion of its holdings, selling over 4.2 million shares for a total value exceeding $188 million. This transaction, disclosed in an SEC filing, significantly reduced their direct ownership, underscoring notable insider activity within the company.
In positive news for shareholders, Kinetik recently declared a quarterly dividend of $0.78 per share, payable on August 1st to shareholders of record by July 25th. This translates to an annualized dividend of $3.12, yielding 7.30%, a compelling figure for income-focused investors. The ex-dividend date was set for July 25th, highlighting the company’s commitment to shareholder returns despite the revised earnings forecasts.
Kinetik Holdings Inc. operates as a crucial midstream company primarily within the prolific Texas Delaware Basin. Its comprehensive services include the gathering, transportation, compression, processing, and treating of natural gas, natural gas liquids, crude oil, and water for various energy producers, solidifying its role in the region’s energy infrastructure.
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