Kinder Morgan (NYSE:KMI) Stock Price Up 1.2% - Still a Buy?

Key Points

• Kinder Morgan shares rose 1.2% to about $30.50, though the stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: the average rating is “Hold,” with a consensus price target of $35.77, while some firms maintain Buy ratings and others have lowered targets.
• The company reported stronger-than-expected quarterly results, including $0.37 EPS and $4.48 billion in revenue, and offers a 3.9% dividend yield. However, its 76.3% payout ratio and concerns about dividend coverage and leverage remain risks for income investors.

Kinder Morgan, Inc. (NYSE:KMI - Get Free Report)'s stock price shot up 1.2% during trading on Thursday. The company traded as high as $30.66 and last traded at $30.4990. Approximately 11,131,534 shares traded hands during mid-day trading, a decline of 9% from the average session volume of 12,166,116 shares. The stock had previously closed at $30.15.

Key Headlines Impacting Kinder Morgan

Here are the key news stories impacting Kinder Morgan this week:

• Positive Sentiment: Jim Cramer recommended buying Kinder Morgan, describing the energy stock as “too cheap.” The endorsement could support investor interest, particularly among value and income-focused investors. Cramer's lightning round: Buy Kinder Morgan
• Positive Sentiment: Analysts continue to view KMI as a relatively resilient midstream operator because much of its revenue comes from fee-based arrangements and long-term contracts rather than direct exposure to crude-oil prices. Its natural-gas, LNG and data-center-related infrastructure are cited as potential sources of stability amid commodity-price volatility. Beyond Oil Price Swings: 3 Midstream Stocks Built for Resilience
• Neutral Sentiment: Kinder Morgan’s Wolfe Research conference presentation and transcript provide investors with additional management commentary on utilities, midstream operations and clean-energy opportunities, but the supplied reports do not identify a specific new announcement or earnings change. Kinder Morgan Wolfe Research Conference Transcript
• Negative Sentiment: KMI and rival ONEOK have both declined sharply over the past month, leaving income investors focused on the trade-off between dividend yield and payout safety. This reflects continued caution toward high-yield pipeline stocks. Better Recession-Proof Dividend Stock: KMI or OKE?
• Negative Sentiment: Comparisons with Williams raise concerns about whether KMI’s dividend is fully supported by operating cash flow or partly funded through borrowing. That question may limit the stock’s appeal despite its sizable yield and resilient business model. Two Pipeline Giants, Two Dividend Strategies

Wall Street Analysts Forecast Growth

Several research firms have recently commented on KMI. Royal Bank Of Canada lifted their price objective on Kinder Morgan from $35.00 to $36.00 and gave the stock a "sector perform" rating in a report on Tuesday, September 22nd. Jefferies Financial Group decreased their price target 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. The Goldman Sachs Group reiterated a "buy" rating on shares of Kinder Morgan in a research report on Wednesday, June 10th. UBS Group reaffirmed a "buy" rating and issued a $43.00 target price on shares of Kinder Morgan in a research note on Monday, June 15th. Finally, Zacks Research cut shares of Kinder Morgan from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 23rd. Eight equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $35.77.

Kinder Morgan Trading Up 1.2%

The company has a quick ratio of 0.36, a current ratio of 0.46 and a debt-to-equity ratio of 0.91. The firm has a market cap of $67.92 billion, a P/E ratio of 19.55, a PEG ratio of 2.14 and a beta of 0.56. The firm's fifty day moving average is $31.54 and its two-hundred day moving average is $32.12.

Kinder Morgan (NYSE:KMI - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The pipeline company reported $0.37 earnings per share for the quarter, beating analysts' consensus estimates of $0.31 by $0.06. Kinder Morgan had a net margin of 19.31% and a return on equity of 10.46%. The firm had revenue of $4.48 billion for the quarter, compared to analyst estimates of $4.22 billion. During the same quarter in the previous year, the firm posted $0.28 EPS. The company's revenue for the quarter 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. Analysts predict that Kinder Morgan, Inc. will post 1.55 earnings per share for the current fiscal year.

Kinder Morgan Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Monday, August 3rd were issued a dividend of $0.2975 per share. This represents a $1.19 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date was Monday, August 3rd. Kinder Morgan's payout ratio is 76.28%.

Insider Transactions at Kinder Morgan

In related news, VP John Schlosser sold 6,166 shares of the business's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $31.90, for a total transaction of $196,695.40. Following the sale, the vice president owned 164,208 shares of the company's stock, valued at $5,238,235.20. The trade was a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Michael Garthwaite sold 1,550 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $30.80, for a total transaction of $47,740.00. Following the transaction, the vice president directly owned 48,863 shares of the company's stock, valued at $1,504,980.40. This represents a 3.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 12.72% of the company's stock.

Institutional Trading of Kinder Morgan

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Evolution Wealth Management Inc. raised its stake in shares of Kinder Morgan by 4,166.7% in the second quarter. Evolution Wealth Management Inc. now owns 768 shares of the pipeline company's stock worth $25,000 after purchasing an additional 750 shares during the last quarter. Transamerica Financial Advisors LLC increased its stake in shares of Kinder Morgan by 72.9% in the 2nd quarter. Transamerica Financial Advisors LLC now owns 778 shares of the pipeline company's stock worth $25,000 after purchasing an additional 328 shares in the last quarter. Commonwealth Retirement Investments LLC purchased a new position in Kinder Morgan during the fourth quarter valued at $27,000. Frazier Financial Advisors LLC bought a new stake in Kinder Morgan during the first quarter valued at about $28,000. Finally, Bell Investment Advisors Inc increased its holdings in Kinder Morgan by 112.1% in the 2nd quarter. Bell Investment Advisors Inc now owns 946 shares of the pipeline company's stock worth $30,000 after acquiring an additional 500 shares in the last quarter. 62.52% of the stock is currently owned by institutional investors.

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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