Nothing seems to be going right for Kinder Morgan Inc (NYSE:KMI) shareholders as of late. While the stock continues its freefall, more external negative news comes their way. Today OPEC decided not to cut oil supply, sending oil prices down significantly, along with Kinder Morgan Inc (NYSE:KMI) shares. Besides the external influences on the stock, worries about a possible credit rating downgrade also seems to be having an effect. Fitch Ratings has expressed concern over the company and their widening credit default swap spreads. They’ve indicated that Kinder Morgan’s credit rating is at risk of a downgrade from BBB/BBB- to B+.The stock is down 6.07% or $1.17 following the news, hitting $18.09 per share. Approximately 3.54 million shares traded hands. KMI shares have declined 55.34% since May 1, 2015 and are currently downtrending. It has underperformed the S&P500 by 55.14%.
From a total of 8 analysts covering Kinder Morgan (NYSE:KMI) stock, 6 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $44 while the lowest target price is $29. The mean of all analyst targets is $37 which is 104.53% above today’s ($18.09) stock price. Kinder Morgan was the topic of 16 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. Argus Research maintained shares on November 10 with a “Buy” rating. Bank of America maintained shares with a”Buy” rating and a $44 target share price in their report from a September 28. RBC Capital Markets maintained KMI stock in a recent report from October 22 with a “Outperform” rating. Finally, Credit Suisse downgraded the stock to a “Neutral” rating in a report they issued on an October 22.
The institutional sentiment decreased to 1.18 in Q2 2015. It’s down 0.15, from 1.33 in 2015Q1. The ratio fall, as 86 funds sold all their Kinder Morgan Inc shares they owned while 413 reduced their positions. 106 funds bought stakes while 483 increased their total positions. Institutions now own 1.17 billion shares which is 2.97% less than the previous share count of 1.21 billion in 2015Q1.
Highstar Capital Lp holds 100% of its total portfolio in Kinder Morgan Inc, equating to 68.87 million shares. Travelers Companies Inc. owns 1.64 million shares representing 16.62% of their total US portfolio. Moreover, Rare Infrastructure Ltd has 14.64% of their total portfolio invested in the company, equating to 9.63 million shares. The New York-based C V Starr & Co Inc has a total of 13.21% of their portfolio invested in the stock. Endurance Wealth Management Inc., a Rhode Island-based fund reported 1.61 million shares owned.
Kinder Morgan, Inc. is an energy infrastructure and energy firm in North America. The company has a market cap of $40.37 billion. The Firm operates through six divisions: Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada and Other. It has 34.58 P/E ratio. The Natural Gas Pipelines segment includes interstate and intrastate pipelines and its liquefied natural gas (LNG) terminals.