Kinder Morgan, Inc. (NYSE:KMI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday, October 17th.
According to Zacks, “Kinder Morgan, Inc,’s focus on natural gas has raised concern amid a sluggish natural gas price environment. We are also cautious considering the risks that includes rising costs associated with organic growth projects. The company’s total debt now stands higher than equity capital, reflecting balance sheet weakness. The adversities faced by Trans Mountain pipeline expansion has led to cost over runs. These negatives are reflected in its price chart that has lagged the Zacks sub industry over the past three months. Considering these factors, we see limited upside for Kinder Morgan shares from current levels.”
Several other equities analysts have also weighed in on KMI. Goldman Sachs Group, Inc. (The) lowered Kinder Morgan from a “buy” rating to a “neutral” rating and increased their target price for the company from $18.81 to $22.00 in a research note on Tuesday, October 17th. Morgan Stanley reissued an “overweight” rating and issued a $25.00 target price on shares of Kinder Morgan in a research note on Monday, July 3rd. BMO Capital Markets set a $26.00 price objective on Kinder Morgan and gave the stock a “buy” rating in a report on Tuesday, June 20th. Raymond James Financial, Inc. reiterated a “buy” rating on shares of Kinder Morgan in a report on Saturday, July 22nd. Finally, Jefferies Group LLC restated a “hold” rating and issued a $23.00 price target on shares of Kinder Morgan in a research note on Friday, June 23rd. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and eleven have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $23.03.
Shares of Kinder Morgan (NYSE:KMI) traded up $0.34 during trading hours on Tuesday, reaching $18.08. The company’s stock had a trading volume of 12,625,774 shares, compared to its average volume of 11,390,000. Kinder Morgan has a 52-week low of $17.59 and a 52-week high of $23.01. The company has a market capitalization of $40,370.00, a PE ratio of 27.29, a price-to-earnings-growth ratio of 1.38 and a beta of 0.65. The company has a quick ratio of 0.35, a current ratio of 0.42 and a debt-to-equity ratio of 0.96.
Kinder Morgan (NYSE:KMI) last announced its earnings results on Wednesday, October 18th. The pipeline company reported $0.15 EPS for the quarter, hitting the consensus estimate of $0.15. The company had revenue of $3.28 billion for the quarter, compared to analysts’ expectations of $3.21 billion. Kinder Morgan had a return on equity of 4.33% and a net margin of 10.39%. The business’s revenue for the quarter was down 1.5% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.10) earnings per share. equities research analysts forecast that Kinder Morgan will post 0.64 earnings per share for the current fiscal year.
Kinder Morgan announced that its board has approved a share repurchase plan on Wednesday, July 19th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the pipeline company to buy up to 4.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.
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Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Teacher Retirement System of Texas grew its position in shares of Kinder Morgan by 2.8% in the 3rd quarter. Teacher Retirement System of Texas now owns 1,482,276 shares of the pipeline company’s stock valued at $28,430,000 after buying an additional 40,853 shares during the last quarter. Rhumbline Advisers lifted its stake in shares of Kinder Morgan by 1.3% in the 3rd quarter. Rhumbline Advisers now owns 3,342,367 shares of the pipeline company’s stock valued at $64,107,000 after purchasing an additional 41,297 shares during the period. Toronto Dominion Bank lifted its stake in shares of Kinder Morgan by 12.4% in the 3rd quarter. Toronto Dominion Bank now owns 732,033 shares of the pipeline company’s stock valued at $14,038,000 after purchasing an additional 80,549 shares during the period. CI Investments Inc. lifted its stake in shares of Kinder Morgan by 32.6% in the 3rd quarter. CI Investments Inc. now owns 4,555,724 shares of the pipeline company’s stock valued at $87,379,000 after purchasing an additional 1,119,021 shares during the period. Finally, New York State Common Retirement Fund raised its stake in Kinder Morgan by 1.3% during the 3rd quarter. New York State Common Retirement Fund now owns 5,119,800 shares of the pipeline company’s stock worth $98,198,000 after buying an additional 65,640 shares during the period. Hedge funds and other institutional investors own 59.13% 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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