A better buy-in window may exist right now for Kinder Morgan Inc. (KMI)

Kinder Morgan Inc. (NYSE: KMI) stock fell -2.12% on Friday to $17.52 against a previous-day closing price of $17.90. With 20.47 million shares changed hands, the volume of the stock remained heavier than its average volume of 15.18 million shares. During the session, the Oil & Gas Midstream company that operates in wider Energy sector, reached to the highest price of $18.18 whereas the lowest price it dropped to was $17.51. The 52-week range on KMI shows that it touched its highest point at $20.20 and its lowest point at $15.01 during that stretch. It currently has a 1-year price target of $20.49. With its current market cap of 40.72 billion, KMI has annualized dividend of $1.11 while the current yield stands at 6.34%. Beta for the stock currently stands at 0.91.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of KMI was down-trending over the past week, with a drop of -5.45%, but this was down by -5.60% over a month. Three-month performance surged to 7.22% while six-month performance fell -2.29%. The stock gained 11.03% in the past year, while it has gained 10.47% so far this year. A look at the trailing 12-month EPS for KMI yields 1.07 with Next year EPS estimates of 1.21. For the next quarter, that number is 0.29. This implies an EPS growth rate of -9.80% for this year and 1.94% for next year. EPS is expected to decline by -2.64% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 25.80%.

Float and Shares Shorts:

At present, 2.27 billion KMI shares are outstanding with a float of 1.99 billion shares on hand for trading. On Aug 30, 2022, short shares totaled 34.54 million, which was 1.53% higher than short shares on Jul 28, 2022. In addition to Mr. Steven J. Kean as the firm’s CEO & Director, Ms. Kimberly Allen Dang serves as its Pres & Director.

Institutional Ownership:

Through their ownership of 63.09% of KMI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 31.81% of KMI, in contrast to 31.07% held by mutual funds. Shares owned by individuals account for 15.53%. As the largest shareholder in KMI with 7.28% of the stake, The Vanguard Group, Inc. holds 164,108,455 shares worth 164,108,455. A second-largest stockholder of KMI, SSgA Funds Management, Inc., holds 139,790,412 shares, controlling over 6.21% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in KMI, holding 110,128,991 shares or 4.89% stake. With a 2.68% stake in KMI, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 60,367,726 shares are owned by the mutual fund manager. The SPDR Series – Energy Select Secto, which owns about 2.37% of KMI stock, is the second-largest Mutual Fund holder. It holds 53,354,969 shares valued at 977.46 million. Vanguard 500 Index Fund holds 1.93% of the stake in KMI, owning 43,527,151 shares worth 797.42 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, KMI reported revenue of $5.15B and operating income of $994.00M. Over the past year, revenue came in at $17.69B while operating income stood at $3.82B. It generated $635.00M net income for the quarter, which came to $2.43B over the last twelve months. The EBITDA in the recently reported quarter was $1.53B and diluted EPS was $0.28. EBITDA for the full year was $5.98B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KMI since 22 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 15 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With KMI analysts setting a high price target of $25.00 and a low target of $18.00, the average target price over the next 12 months is $20.49. Based on these targets, KMI could surge 42.69% to reach the target high and rise by 2.74% to reach the target low. Reaching the average price target will result in a growth of 16.95% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. KMI will report FY 2022 earnings on 01/18/2023. Analysts have provided yearly estimates in a range of $1.25 being high and $1.13 being low. For KMI, this leads to a yearly average estimate of $1.18. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Kinder Morgan Inc. surprised analysts by -$0.00 when it reported $0.27 EPS against a consensus estimate of $0.27. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.32 and the low estimate is $0.27. The average estimate for the next quarter is thus $0.29.

Summary of Insider Activity:

Insiders traded KMI stock several times over the past three months with 9 Buys and 10 Sells. In these transactions, 500,869 shares were bought while 191,692 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 564,689 while 906,921 shares were sold.

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