Kinder Morgan (NYSE:KMI) Shares Climb 1.2% – Still a Buy?

Kinder Morgan, Inc. (NYSE:KMI)’s share price was up 1.2% during trading on Thursday. The stock 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

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. Royal Bank Of Canada increased their target price on Kinder Morgan from $35.00 to $36.00 and gave the stock a “sector perform” rating in a research report on Tuesday, September 22nd. UBS Group reissued a “buy” rating and issued a $43.00 price target on shares of Kinder Morgan in a report on Monday, June 15th. Zacks Research lowered shares of Kinder Morgan from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 23rd. Citigroup reissued a “neutral” rating on shares of Kinder Morgan in a report on Wednesday, July 29th. Finally, The Goldman Sachs Group restated a “buy” rating on shares of Kinder Morgan in a research report on Wednesday, June 10th. Eight investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat, Kinder Morgan 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 quick ratio of 0.36 and a current ratio of 0.46. The firm has a fifty day simple moving average of $31.54 and a two-hundred day simple moving average of $32.12. The firm has a market cap of $67.92 billion, a PE ratio of 19.55, a PEG ratio of 2.14 and a beta of 0.56.

Kinder Morgan (NYSE:KMI) last issued its quarterly earnings data on Wednesday, July 22nd. The pipeline company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.06. Kinder Morgan had a return on equity of 10.46% and a net margin of 19.31%.The business had revenue of $4.48 billion for the quarter, compared to analysts’ expectations of $4.22 billion. During the same period in the prior year, the firm earned $0.28 EPS. The company’s revenue for the quarter was up 10.8% on a year-over-year basis. Kinder Morgan has set its FY 2026 guidance at 1.360-1.360 EPS. Equities analysts predict that Kinder Morgan, Inc. will post 1.55 EPS for the current fiscal year.

Kinder Morgan Dividend Announcement

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

Insider Buying and Selling

In other news, VP Michael Garthwaite sold 1,550 shares of the business’s 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 of the company’s stock, valued at approximately $1,504,980.40. The trade was a 3.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP John Schlosser sold 6,166 shares of the firm’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $31.90, for a total value of $196,695.40. Following the completion of the sale, the vice president owned 164,208 shares of the company’s stock, valued at approximately $5,238,235.20. This represents a 3.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 12.72% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Kinder Morgan

Several hedge funds have recently added to or reduced their stakes in KMI. OP Asset Management Ltd purchased a new stake in Kinder Morgan in the first quarter worth about $6,412,000. Cerity Partners LLC raised its holdings in shares of Kinder Morgan by 8.8% in the 4th quarter. Cerity Partners LLC now owns 1,056,258 shares of the pipeline company’s stock valued at $29,037,000 after purchasing an additional 85,625 shares in the last quarter. USS Investment Management Ltd lifted its position in shares of Kinder Morgan by 10.3% in the 1st quarter. USS Investment Management Ltd now owns 421,306 shares of the pipeline company’s stock worth $14,116,000 after purchasing an additional 39,418 shares during the period. Miller Howard Investments Inc. NY lifted its position in shares of Kinder Morgan by 3.2% in the 1st quarter. Miller Howard Investments Inc. NY now owns 1,822,905 shares of the pipeline company’s stock worth $61,122,000 after purchasing an additional 57,198 shares during the period. Finally, Oak Family Advisors LLC bought a new position in shares of Kinder Morgan during the second quarter valued at approximately $3,627,000. 62.52% of the stock is currently owned by institutional investors.

About Kinder Morgan

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.