Kinder Morgan (NYSE:KMI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.
According to Zacks, “Kinder Morgan, Inc.’s price chart over the last one year showed considerable weakness. During the aforesaid period, the stock lost 12.5% against the 1.1% increase of the broader industry. We are also concerned with the company’s weak balance sheet as total debt capital is higher than total equity capital. Lower natural gas gathering volumes have been affecting the company’s Natural Gas Pipelines segment. Reduced natural gas production in some prospective US basins led to lower gathering volumes for Kinder Morgan. Other risks include rising interest rates, lower commodity prices leading to reduced customer activity, operational risks like pipeline leaks and terrorism, reduced access to capital markets and regulatory risks.”
Several other analysts also recently issued reports on the company. Credit Suisse Group began coverage on Kinder Morgan in a research note on Thursday, January 4th. They set an “outperform” rating and a $23.00 price target for the company. Morgan Stanley decreased their price target on Kinder Morgan from $25.00 to $24.00 and set an “overweight” rating for the company in a research note on Friday, November 17th. Royal Bank of Canada reiterated a “hold” rating and set a $22.00 price target on shares of Kinder Morgan in a research note on Wednesday, November 15th. Stifel Nicolaus decreased their target price on Kinder Morgan from $25.00 to $22.00 and set a “buy” rating for the company in a research note on Tuesday, October 24th. Finally, Mizuho restated a “hold” rating and set a $22.00 target price on shares of Kinder Morgan in a research note on Friday, October 20th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and ten have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $22.72.
Kinder Morgan (NYSE:KMI) last released its quarterly earnings results on Wednesday, October 18th. The pipeline company reported $0.15 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.15. The company had revenue of $3.28 billion during the quarter, compared to the consensus estimate of $3.21 billion. Kinder Morgan had a return on equity of 4.33% and a net margin of 10.39%. The firm’s revenue was down 1.5% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.10) EPS. research analysts predict that Kinder Morgan will post 0.65 EPS for the current year.
In other Kinder Morgan news, VP Thomas A. Martin bought 3,000 shares of the firm’s stock in a transaction that occurred on Tuesday, December 5th. The stock was purchased at an average price of $17.10 per share, for a total transaction of $51,300.00. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. 13.99% of the stock is owned by corporate insiders.
Hedge funds have recently made changes to their positions in the business. Welch Investments LLC bought a new stake in shares of Kinder Morgan in the 3rd quarter worth approximately $102,000. Valeo Financial Advisors LLC bought a new stake in shares of Kinder Morgan in the 3rd quarter worth approximately $104,000. Fiduciary Trust Co. bought a new stake in shares of Kinder Morgan in the 2nd quarter worth approximately $115,000. Sit Investment Associates Inc. lifted its position in shares of Kinder Morgan by 237.1% in the 4th quarter. Sit Investment Associates Inc. now owns 6,725 shares of the pipeline company’s stock worth $122,000 after acquiring an additional 4,730 shares during the period. Finally, Acrospire Investment Management LLC lifted its position in shares of Kinder Morgan by 30.7% in the 2nd quarter. Acrospire Investment Management LLC now owns 6,814 shares of the pipeline company’s stock worth $131,000 after acquiring an additional 1,600 shares during the period. Institutional investors own 60.73% of the company’s stock.
About Kinder Morgan
Kinder Morgan, Inc is an energy infrastructure company. It operates through five segments. Its Natural Gas Pipelines segment is engaged in the ownership and operation of interstate and intrastate natural gas pipeline and storage systems, and liquefied natural gas facilities, among others. Its CO2 segment is engaged in the production, transportation and marketing of carbon dioxide (CO2) to oil fields and the ownership and operation of a crude oil pipeline system, among others.
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