Kinder Morgan (NYSE:KMI) Shares Up 2.5% - Here's Why

Key Points

• Kinder Morgan shares rose 2.5% to about $32.20 in heavy trading, with volume 28% above the average session volume.
• Analyst sentiment remains mixed: eight analysts rate the stock a Buy and eleven rate it a Hold, producing an overall “Hold” consensus and an average price target of $35.77.
• The company reported quarterly EPS of $0.37, beating estimates by $0.06, while revenue increased 10.8% year over year to $4.48 billion. Kinder Morgan also maintains a quarterly dividend of $0.2975, equivalent to a 3.7% annual yield.

Kinder Morgan, Inc. (NYSE:KMI - Get Free Report)'s stock price was up 2.5% during mid-day trading on Tuesday. The stock traded as high as $32.31 and last traded at $32.20. 15,606,039 shares were traded during trading, an increase of 28% from the average session volume of 12,184,577 shares. The stock had previously closed at $31.41.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Citigroup reaffirmed a "neutral" rating on shares of Kinder Morgan in a research report on Wednesday, July 29th. The Goldman Sachs Group restated a "buy" rating on shares of Kinder Morgan in a research report on Wednesday, June 10th. Jefferies Financial Group lowered their target price on Kinder Morgan from $35.00 to $33.00 and set a "hold" rating on the stock in a research note on Thursday, September 17th. UBS Group reiterated a "buy" rating and issued a $43.00 target price on shares of Kinder Morgan in a report on Monday, June 15th. Finally, Stifel Nicolaus began coverage on shares of Kinder Morgan in a report on Wednesday, September 9th. They set a "hold" rating and a $35.00 price target for the company. Eight investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $35.77.

Kinder Morgan Price Performance

The company has a debt-to-equity ratio of 0.91, a current ratio of 0.46 and a quick ratio of 0.36. The stock has a market capitalization of $71.70 billion, a price-to-earnings ratio of 20.64, a PEG ratio of 2.19 and a beta of 0.59. The stock's 50 day simple moving average is $31.45 and its 200-day simple moving average is $32.07.

Kinder Morgan (NYSE:KMI - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The pipeline company reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.06. Kinder Morgan had a net margin of 19.31% and a return on equity of 10.46%. The business had revenue of $4.48 billion during the quarter, compared to analyst estimates of $4.22 billion. During the same quarter in the previous year, the business earned $0.28 EPS. Kinder Morgan's quarterly revenue was up 10.8% compared to the same quarter last year. Kinder Morgan has set its FY 2026 guidance at 1.360-1.360 EPS. On average, analysts expect that Kinder Morgan, Inc. will post 1.55 EPS for the current fiscal year.

Kinder Morgan Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Monday, August 3rd were issued a $0.2975 dividend. This represents a $1.19 annualized dividend and a yield of 3.7%. The ex-dividend date was Monday, August 3rd. Kinder Morgan's payout ratio is 76.28%.

Insider Transactions at Kinder Morgan

In other Kinder Morgan news, VP Michael Garthwaite sold 1,550 shares of the stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $30.80, for a total transaction of $47,740.00. Following the transaction, the vice president owned 48,863 shares in the company, valued at $1,504,980.40. This trade represents a 3.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 12.72% of the stock is owned by insiders.

Institutional Trading of Kinder Morgan

Institutional investors and hedge funds have recently modified their holdings of the company. Klingman & Associates LLC increased its position in shares of Kinder Morgan by 3.9% in the first quarter. Klingman & Associates LLC now owns 8,498 shares of the pipeline company's stock valued at $285,000 after buying an additional 319 shares in the last quarter. TD Capital Management LLC lifted its position in shares of Kinder Morgan by 36.0% during the 4th quarter. TD Capital Management LLC now owns 1,220 shares of the pipeline company's stock valued at $34,000 after buying an additional 323 shares in the last quarter. Transamerica Financial Advisors LLC grew its stake in Kinder Morgan by 72.9% in the 2nd quarter. Transamerica Financial Advisors LLC now owns 778 shares of the pipeline company's stock valued at $25,000 after acquiring an additional 328 shares during the period. Abel Hall LLC increased its holdings in Kinder Morgan by 4.0% in the 1st quarter. Abel Hall LLC now owns 8,588 shares of the pipeline company's stock worth $288,000 after acquiring an additional 330 shares in the last quarter. Finally, Waddell & Associates LLC raised its position in Kinder Morgan by 1.3% during the fourth quarter. Waddell & Associates LLC now owns 26,206 shares of the pipeline company's stock worth $720,000 after acquiring an additional 336 shares during the period. 62.52% of the stock is currently owned by institutional investors and hedge funds.

Kinder Morgan Company Profile

Kinder Morgan, Inc NYSE: KMI is an energy infrastructure company that owns and operates pipelines, terminals, and storage facilities. Its assets primarily transport and store natural gas, crude oil, refined petroleum products, and carbon dioxide, supporting energy producers, utilities, refiners, industrial companies, and other customers.

The company's natural gas business includes interstate and intrastate pipelines, gathering and processing systems, and underground storage facilities.

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