Shares of Kinder Morgan Inc (NYSE:KMI) have been correlated to the price of oil over the past year or so, although the company’s executive chairman, Rich Kinder says that investors who correlate KMI’s fortunes with that of the price of crude oil, are “misguided”. With that said, today, with oil prices up around 3%, we see shares of Kinder Morgan also up, continuing the correlation that we’ve seen over the past year.
The price of oil is finally leveling off and making up some of the losses we’ve seen over the past few months. What many investors, however, do not realize is that oil makes up only about 10% of Kinder Morgan Inc (NYSE:KMI)’s earnings, so the price of oil itself shouldn’t effect the company as much as investors seem to believe. Regardless though, the trend has continued and perhaps unwarranted, investors continue to become bearish of the company’s stock as oil falls and bullish when it rises.
The stock is up 8.27% or $1.16 following the news, hitting $15.26 per share. About 28.76M shares traded hands. KMI has declined 63.94% since June 23, 2015 and is downtrending. It has underperformed the S&P500 by 52.92%.
From a total of 10 analysts covering Kinder Morgan (NYSE:KMI) stock, 6 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 60% of the ratings are positive. The highest target price is $44 while the lowest target price is $14. The mean of all analyst targets is $27.55 which is 80.54% above today’s ($15.26) stock price. Kinder Morgan was the topic of 26 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets downgraded shares on December 9 to a “Sector Perform” rating. Stifel Nicolaus downgraded KMI stock in a recent report from October 22 to a “Hold” rating. Finally, Tudor Pickering downgraded the stock to a “Buy” rating in a report they issued on an August 14.
The institutional sentiment decreased to 1.13 in Q2 2015. It’s down 0.05, from 1.18 in 2015Q2. The ratio turned negative, as 132 funds sold all their Kinder Morgan Inc shares they owned while 388 reduced their positions. 90 funds bought stakes while 500 increased their total positions. Institutions now own 1.21 billion shares which is 2.95% more than the previous share count of 1.17 billion in 2015Q2.
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 15.15% of their total US portfolio. Moreover, C V Starr & Co Inc has 13.55% of their total portfolio invested in the company, equating to 92,631 shares. The Australia-based Rare Infrastructure Ltd has a total of 10.54% of their portfolio invested in the stock. Endurance Wealth Management Inc., a Rhode Island-based fund reported 1.65 million shares owned.
Kinder Morgan, Inc. is an energy infrastructure and energy firm in North America. The company has a market cap of $31.63 billion. The Firm operates through six divisions: Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada and Other. It has 104.69 P/E ratio. The Natural Gas Pipelines segment includes interstate and intrastate pipelines and its liquefied natural gas (LNG) terminals.