KNTK Should I Buy
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Kinetik Holdings Inc. (KNTK) is not a strong buy for a beginner, long-term investor at this time. While the stock offers a high dividend yield and potential catalysts like the ECCC pipeline project, its recent financial performance, analyst downgrades, and lack of immediate positive trading signals suggest a cautious approach. Holding the stock may be more appropriate until clearer growth trends or positive catalysts materialize.
The stock's MACD is negative and expanding downward, indicating bearish momentum. RSI is neutral at 41.648, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The current price is near the S1 support level of 40.062, suggesting limited downside risk in the short term. However, the overall technical indicators do not provide a strong buy signal.
High dividend yield of 7.85% with a recent 4% increase.
Potential results from the ECCC pipeline project in Q2
Speculation of a takeover by larger pipeline companies.
Stock trading at a discount to peers, attracting professional interest.
Analysts have downgraded the stock, citing valuation concerns and muted Q4 expectations.
Recent financial performance shows significant declines in net income (-91.11% YoY) and EPS (-91.43% YoY).
Limited near-term share catalysts and risks of guidance disappointment.
Hedge fund buying may indicate speculative interest rather than long-term confidence.
In Q3 2025, revenue increased by 17.06% YoY to $463.97M. However, net income dropped by 91.11% YoY to $1.87M, and EPS fell by 91.43% YoY to $0.03. Gross margin also declined significantly to 27.17%, down 31.97% YoY. These figures indicate financial struggles despite revenue growth.
Analysts have recently downgraded the stock, with Jefferies moving it to Hold from Buy and Wolfe Research downgrading it to Peer Perform. Price targets have been adjusted downward by several firms, with muted expectations for Q4 and concerns about valuation. However, some analysts, like Scotiabank, remain optimistic about long-term tailwinds from LNG exports and power demand.
