Kinder Morgan, Inc. (KMI): Analyst Ratings You Should Pay Attention To

Analysts at Credit Suisse, assumed coverage of Kinder Morgan, Inc. (NYSE:KMI) with Outperform recommendation, according to their opinion released on October 11. Bernstein analysts bumped their recommendation on KMI stock from Mkt Perform to Outperform in a separate flash note to investors on June 26. Analysts at Wells Fargo issued an upgrade from Market Perform to Outperform for the stock, in a research note that dated back to June 18.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Kinder Morgan, Inc. (NYSE:KMI)’s prospects. The earliest insider trade took place on 09/27/2018. Kinder Richard D gathered a total of 500 thousand shares of company at average share price of $17.55. The total for the purchase was set at $8.78 million. After this transaction, the Executive Chairman, 10% Owner account balance stood at 246 million shares. The stock lost -4.96 percent since that insider purchase. On 07/26/2018, Smith William A, Director, purchased 5.56 thousand shares at a price per share of $18.09. This added 100.51 thousand shares to the insider’s fortune and the stock saw a -7.79 percent retreat in value since the news became public. This transaction left 34.17 thousand shares in the Director account. On 01/22/2018, Director Smith William A performed a purchase transaction worth $107.36 thousand. This purchase at $19.52 each has added 5.5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -14.55 percent decrease since the transaction was reported. The insider now is left with 28.61 thousand shares remaining in the account. Martin Thomas A, who performs the V.P job, bought 3 thousand shares for $51.3 thousand. The acquisition occurred on 12/05/2017 was priced at $17.1 per share. The share price plunged -2.46 percent since the reporting date. Martin Thomas A now left with a stake of 1.15 million KMI stock worth $19.13 million after the insider buying.

Kinder Morgan, Inc. (KMI) is expected to jump by 30.94 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $26-month high price target. This represents a whopping 55.88 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $21, which represents a return potential of 25.9 percent when compared to the closing price of the stock of $16.68 on Tuesday, December 04. The lowest price target for the stock is $18 — slightly more than 7.91 percent from KMI’s current share price.

The shares are currently floating around the first support level of $16.42. Below this, the next support is placed in the zone of $16.16. Till the time, the KMI stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 42.05 on daily chart, which may remain a cause for concern. If the price breaks below $16.16 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $17.16 mark may result into a pull-back move towards $17.64 level.

KMI shares dropped -0.62 points or -3.58 percent on Tuesday to $16.68 with a heavy trade volume of 21.012 million shares. After opening the session at $17.28, the shares went as high as $17.38 and as low as $16.64, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $36.4 billion and now has 2.18 billion shares outstanding. Kinder Morgan, Inc. (KMI) stock has lost -1.07 percent of market value in 21 trading days.

KMI stock has a trailing 3-year beta of 0.69, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.57 a share in the trailing twelve months. The stock’s value has fallen -7.69 percent year to date (YTD) against a decline of -3.3 percent in 12 month’s time. The company’s shares still trade -15.89 percent away from its 1-year high of $19.83 and 13.55 percent up from 52-week low of $14.69. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Kinder Morgan, Inc. (KMI) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry KMI operates in has an average P/E of 58.95. Its P/E ratio went as low as 31.16X and as high as 144.14 over the 5-year span. Further, it is sporting a 2.6 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.47. 49.4 percent is the gross profit margin for Kinder Morgan, Inc. and operating margin sits at 22.4 percent. Along with this, the net profit margin is -0.3 percent.

KMI will be showing off its Q4 earnings on January 16. Analysts are forecasting revenue to climb 6 percent to $3.85B in the next fiscal quarter, while earnings are seen soaring by nearly 19.05 percent to $0.25 per share. History has shown that shares in Kinder Morgan, Inc. have gone up on 19 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.22 per share, better than the $0.21, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.52B, worse than the $3.56B analysts expected. Earnings are estimated to increase by -319.8 percent this year, 14 percent next year and continue to increase by 12 percent annually for the next 5 years.