Kodiak Gas Services, Inc. (KGS) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Kodiak Gas Services, Inc. faces a nuanced tax-related business risk concerning the treatment of distributions to its U.S. stockholders. The variability of Kodiak’s earnings and profits, coupled with the dynamic tax basis of stockholders in the common stock, injects a degree of uncertainty into the tax consequences of such distributions. As distributions may shift from being treated as dividends to a return of capital or capital gains, U.S. holders could experience changing tax liabilities. This complexity may not only affect individual tax obligations but also limit corporate stockholders’ ability to claim dividends-received deductions, potentially increasing the tax burden and impacting the attractiveness of Kodiak’s common stock.
Overall, Wall Street has a Strong Buy consensus rating on KGS stock based on 6 Buys and 2 Holds.
To learn more about Kodiak Gas Services, Inc.’s risk factors, click here.