Latest news with #KodiakGasServices
Yahoo
2 days ago
- Business
- Yahoo
Kodiak Gas Services (KGS): Among the Energy Stocks that Lost the Most This Week
The share price of Kodiak Gas Services, Inc. (NYSE:KGS) fell by 7.86% between June 3 and June 10, 2025, putting it among the Energy Stocks that Lost the Most This Week. Let's shed some light on the development. A close-up of a large industrial compressor in the oil and gas industry. Kodiak Gas Services, Inc. (NYSE:KGS) is a leading provider of natural gas contract compression services in the United States, bringing efficiency and reliability to all the major basins. Kodiak Gas Services, Inc. (NYSE:KGS) has been under pressure over the last week following a drop in the price of natural gas. US natural gas futures have fallen by 7% since June 6, 2025, due to reduced gas flows to LNG export plants amid the ongoing spring maintenance. Key facilities affected include Cameron LNG and Cheniere's Sabine Pass and Corpus Christi, as well as multiple outages at Freeport LNG. Despite the recent downturn, the share price of Kodiak Gas Services, Inc. (NYSE:KGS) has surged by more than 30% over the last year. While we acknowledge the potential of KGS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and Disclosure: None.
Yahoo
2 days ago
- Business
- Yahoo
Kodiak Gas Services (KGS): Among the Energy Stocks that Lost the Most This Week
The share price of Kodiak Gas Services, Inc. (NYSE:KGS) fell by 7.86% between June 3 and June 10, 2025, putting it among the Energy Stocks that Lost the Most This Week. Let's shed some light on the development. A close-up of a large industrial compressor in the oil and gas industry. Kodiak Gas Services, Inc. (NYSE:KGS) is a leading provider of natural gas contract compression services in the United States, bringing efficiency and reliability to all the major basins. Kodiak Gas Services, Inc. (NYSE:KGS) has been under pressure over the last week following a drop in the price of natural gas. US natural gas futures have fallen by 7% since June 6, 2025, due to reduced gas flows to LNG export plants amid the ongoing spring maintenance. Key facilities affected include Cameron LNG and Cheniere's Sabine Pass and Corpus Christi, as well as multiple outages at Freeport LNG. Despite the recent downturn, the share price of Kodiak Gas Services, Inc. (NYSE:KGS) has surged by more than 30% over the last year. While we acknowledge the potential of KGS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and Disclosure: None.
CNBC
23-05-2025
- Business
- CNBC
Goldman says these stocks will benefit from some provisions in the tax bill
Goldman Sachs is eyeing a handful of stocks that the firm thinks can be winners as a result of details in President Donald Trump's tax bill. Trump's plan, which just made it through the House of Representatives, extends the tax cuts from his first term that are set to expire in December but also contains new elements, like a temporary end to taxes on tips as well as $25 billion for his " Golden Dome " missile defense system. Economists argue that the bill will add trillions of dollars to the ballooning national debt , helping to spur a sharp rise in U.S. Treasury yields . The bill still faces an arduous path to approval in the Senate, where some Republicans want steep cuts to Medicaid as part of an agreement to support the legislation. The bill already includes what would be the largest ever cut to food stamps in the history of the Supplemental Nutrition Assistance Program (SNAP). But other provisions in the bill, if they remain in place, could prove a boon for some small cap stocks, according to Goldman Sachs analysts led by analyst Deep Mehta, citing an analysis of the legislation by Goldman political economist Alec Phillips. Some of the potential tailwinds include "full expensing of domestic factories," reinstating or extending earlier provisions in the 2017 tax law that allowed companies to fully expense capital spending on equipment and more generous deductibility of interest expenses. Goldman argues that small cap companies with high capital spending stand to benefit the most. "As we have noted before, small-caps tend to be more sensitive to tax policies given their higher domestic exposure, leverage levels, and tax rates," Mehta wrote in a Wednesday note. Here's a look at some of the small cap stocks that closely match up with several aspects of the proposed Congressional legislation described by Goldman. Stock in natural gas compression company Kodiak Gas Services was down 16% in 2025 through Thursday. About 90% of analysts polled by FactSet rate the stock a buy, with the Street's consensus price target implying 30% upside. "[We expect a] solid demand outlook for compression services in U.S. shale oil fields with Permian production growth proving to be more resilient than expected," Goldman analyst John Mackay wrote. He forecast stable capital spending for Kodiak, alongside better profit margins, which he said should support both free cash flow and the flexibility to buy back stock. KGS YTD mountain Kodiak Gas Services stock in 2025. Other possible beneficiaries include Shake Shack , whose shares through Thursday have fallen almost 10% so far in 2025. Analysts are pretty evenly divided on the burger chain, however, with 52% surveyed by FactSet rating it the equivalent of a buy. Other stocks on the Goldman screen of tax bill beneficiaries included home furnishing retailer RH , formerly Restoration Hardware, and automotive maintainence supplier Valvoline .
Yahoo
10-05-2025
- Business
- Yahoo
Kodiak Gas Services price target raised to $46 from $45 at Stifel
Stifel raised the firm's price target on Kodiak Gas Services (KGS) to $46 from $45 and keeps a Buy rating on the shares. Despite the uncertain macro, Kodiak remains confident in the Permian and the need for additional compression, notes the analyst after the company posted Q1 results modestly above the firm's estimates and raised the low end of 2025 EBITDA guidance. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on KGS: Disclaimer & DisclosureReport an Issue Kodiak Gas Services Reports Strong Q1 2025 Results Kodiak Gas Services raises FY25 adjusted EBITDA view to $695M-$725M Kodiak Gas Services reports Q1 EPS 33c, consensus 38c Kodiak Gas Services Increases Quarterly Dividend by 10% Kodiak Gas Services raises quarterly dividend to 45c per share Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Kodiak Gas Services, Inc. (KGS): Among Stocks with Insanely High PE Ratios Insiders Are Selling
We recently published a list of . In this article, we are going to take a look at where Kodiak Gas Services, Inc. (NYSE:KGS) stands against other stocks with insanely high PE ratios insiders are selling. The U.S. stock market has turned into a theater of extremes right now. Growth stocks are seeing an abnormal price hike, but in some cases, it is almost proportionately met with the insiders cashing out. The flood of insider sales in companies trading at unbelievable price-to-earnings (PE) ratios has become the prime example of what would happen when euphoria crashes with caution. But why are corporate executives – the insiders who know the company best- selling shares when investors are piling in on them? Let's connect the dots. READ ALSO: Growth stocks continue to be at the center of attraction in 2025. They have been outperforming their value counterpart over the past decade, fueled by declining interest rates and increasing bets on innovation. Even when the Fed hiked the rates in 2023, growth stocks strived under pressure, with some sectors continuing to command premium valuations. Many of these companies are now trading at PE ratios that even optimistic analysts could not justify. For that reason, insiders are selling, and they are doing it aggressively. Retail investors chase fast-paced moments while corporate executives and major stakeholders pull their investments from the company. Data from the SEC's Form 4 filings reveal that insider sales for high-PE firms have increased recently, reflecting a widening gap between Wall Street's optimism and Main Street's reality. It is yet to be decided whether these sales are a vote of no confidence in the insanely high valuations or simply prudent profit-taking. To answer this, we need to look at the broader economic environment. Recently, President Trump proposed a $163 billion budget cut, which involves slashing domestic programs while concentrating on defense and border security. The reduced funding for housing, education, and healthcare could hurt consumer spending, and hence, the cut has introduced fresh uncertainty into a market where investors are already scrambling due to interest rate and tariff rate uncertainties. On the other hand, the Treasury bond market is also flashing warning signs. According to a report by Reuters, two-year yields have declined to 3.57%, nearly a full percentage point below the Fed's benchmark rate. Treasury Secretary Scott Bessent calls the gap a clear signal for rate cuts. When we look back at history, we will see that these dislocations usually preceded economic slowdowns, and in such an environment, the high PE stocks that could not meet the inflated expectations with their earnings will fall. That said, high PE ratios are not always bad. They often reflect the market's confidence in the company's future growth. But when insiders start to dump the stocks amid geopolitical disturbances and rate cut debates, we cannot help but wonder whether this is calm before a storm. And it is here we must exercise caution. From our picks, you could see a red flag or a buying opportunity. However, one thing is clear. In today's market, ignoring the warning signs could be the riskiest move. We have followed a few criteria when putting together our list of 10 stocks with unbelievably high PE ratios, being sold by insiders. All the stocks in the list have a PE ratio of 35 or more, which defines the term insanely-high for our article. We have further reduced the number of stocks to 10 by considering only those with an insider selling of 5% change or more in the last 6 months. This is to ensure that the potential investors are aware of the change in institutional mindset for stocks with an upward-trending PE ratio. Based on this insider selling, our picks have been ranked from 10 to 1. All the data in the article was taken from financial databases and analyst reports, with all information updated as of May 05, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a large industrial compressor in the oil and gas industry. Texas-based company, Kodiak Gas Services, Inc. (NYSE:KGS), is a leader in contract compression services for the oil and gas industry across the U.S. The company specializes in large-horsepower natural gas compression and supports upstream and midstream operations. Amid tough competitors like Archrock and USA Compression Partners, Kodiak Gas Services, Inc. (NYSE:KGS) differentiates itself through operational reliability, scale, and customer service. Challenges, however, like changes in natural gas production levels, infrastructure investment, and energy transition policies, continue to affect the company's performance. It is among the stocks that insiders are selling. Reaching $1.2 billion in the fourth quarter of 2025, Kodiak Gas Services, Inc. (NYSE:KGS) has achieved a 36% growth in total revenue, offering some justification for its abnormal pricing. The successful integration of the CSI acquisition has allowed for cost savings that surpassed the initial expectations. On the other hand, the 5% sequential decline in Q4 revenue owing to the divestiture of low-margin non-core horsepower is raising concerns. Labor constraints in the Permian Basin and supply chain constraints, including establishing shops for building compressors and managing equipment delivery times, also affect the company's operational performance. Kodiak Gas Services, Inc. (NYSE:KGS) exhibits a high P/E ratio of 58.67, suggesting a potentially overvalued stock. The investors' concern is high, with insider selling standing at 29.52%, announcing a notable number of insider withdrawals from the company. Together, these values signal that those with intimate company knowledge find it difficult to justify the current price. Overall, KGS ranks 10th on our list of stocks with insanely high PE ratios insiders are selling. While we acknowledge the potential of KGS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KGS but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
