Kinder Morgan (NYSE:KMI) Stock Falls 1.1% – Here’s Why

Kinder Morgan, Inc. (NYSE:KMI)’s share price was down 1.1% on Wednesday. The company traded as low as $31.61 and last traded at $31.81. 7,417,027 shares changed hands during trading, a decline of 39% from the average session volume of 12,150,937 shares. The stock had previously closed at $32.16.

Key Headlines Impacting Kinder Morgan

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

• Positive Sentiment: Jim Cramer said Kinder Morgan is undervalued after its recent decline, citing a valuation of roughly 19 times earnings and arguing that the stock “shouldn’t have” fallen as far. While this is commentary rather than a fundamental company announcement, it may reinforce the bullish case among retail investors. Jim Cramer Says Kinder Morgan Stock Shouldn’t Have Fallen This Far
• Positive Sentiment: Analysts at Zacks see conditions for another earnings beat, pointing to Kinder Morgan’s history of outperforming estimates and favorable earnings-prediction indicators. A beat could support the shares by validating expectations for continued earnings growth. Why Kinder Morgan Could Beat Earnings Estimates Again
• Positive Sentiment: Recent analysis argues that Kinder Morgan’s contracted pipeline operations continue to generate sufficient cash flow to support its dividend yield. This is important for income-oriented investors because dividend durability is a major part of the KMI investment thesis. Kinder Morgan: Pipeline Cash Flow Still Supports the Yield
• Neutral Sentiment: A comparison with Williams highlights that both companies rely on pipeline tolls rather than commodity production. The investment decision therefore depends on relative valuation, growth prospects, balance-sheet strength and dividend coverage rather than natural-gas prices alone. Williams vs Kinder Morgan: Which Is a Better Stock to Buy?
• Negative Sentiment: Dividend-stock screening coverage underscores that yield is only attractive when backed by ample cash-flow coverage. Although separate analysis supports KMI’s payout, the broader theme highlights the risk investors should monitor: weaker operating cash flow or higher financing needs could pressure the dividend and valuation. 5 Dividend Stocks With Fortress-Like Coverage and Room for Things to Go Wrong

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on KMI shares. UBS Group reaffirmed a “buy” rating and issued a $43.00 price objective on shares of Kinder Morgan in a research report on Monday, June 15th. Zacks Research lowered Kinder Morgan from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, June 23rd. Royal Bank Of Canada upped their price objective on shares of Kinder Morgan from $35.00 to $36.00 and gave the company a “sector perform” rating in a research note on Tuesday, September 22nd. Melius Research initiated coverage on shares of Kinder Morgan in a report on Tuesday, September 22nd. They set a “buy” rating and a $38.00 price objective on the stock. Finally, Jefferies Financial Group decreased their target price on shares of Kinder Morgan from $35.00 to $33.00 and set a “hold” rating on the stock in a research report on Thursday, September 17th. Eight analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $35.77.

Kinder Morgan Trading Down 1.1%

The business has a fifty day moving average price of $31.46 and a 200 day moving average price of $32.06. The company has a market capitalization of $70.83 billion, a PE ratio of 20.39, a P/E/G ratio of 2.21 and a beta of 0.59. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.36 and a current ratio of 0.46.

Kinder Morgan (NYSE:KMI) last issued its earnings results on Wednesday, July 22nd. The pipeline company reported $0.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $4.22 billion. During the same quarter in the previous year, the business 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. Analysts expect that Kinder Morgan, Inc. will post 1.55 EPS for the current fiscal year.

Kinder Morgan Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Monday, August 3rd were given a $0.2975 dividend. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $1.19 annualized dividend and a dividend yield of 3.7%. Kinder Morgan’s dividend payout ratio is presently 76.28%.

Insider Buying and Selling at Kinder Morgan

In related news, VP Michael Garthwaite sold 1,550 shares of Kinder Morgan stock in a transaction 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 owned 48,863 shares in the company, valued at approximately $1,504,980.40. The trade was a 3.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 12.72% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Benedict Financial Advisors Inc. raised its holdings in shares of Kinder Morgan by 0.9% during the 3rd quarter. Benedict Financial Advisors Inc. now owns 168,127 shares of the pipeline company’s stock valued at $5,069,000 after buying an additional 1,441 shares during the period. Tompkins Financial Corp boosted its holdings in Kinder Morgan by 28.6% in the 3rd quarter. Tompkins Financial Corp now owns 2,743 shares of the pipeline company’s stock worth $83,000 after acquiring an additional 610 shares during the period. Baker Tilly Wealth Management LLC purchased a new position in Kinder Morgan in the 3rd quarter worth approximately $639,000. Ferguson Wellman Capital Management Inc. grew its position in Kinder Morgan by 0.7% in the third quarter. Ferguson Wellman Capital Management Inc. now owns 717,507 shares of the pipeline company’s stock valued at $21,633,000 after acquiring an additional 4,668 shares in the last quarter. Finally, CapWealth Advisors LLC purchased a new stake in shares of Kinder Morgan during the third quarter valued at approximately $253,000. Institutional investors and hedge funds own 62.52% of the company’s stock.

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.