Those companies which know how to adjust to changing times will be the ones who become leaders of the industries that they represent. Kinder Morgan Inc (NYSE:KMI) is no newcomer to this type of thinking, and today, after their stock fell over the past few weeks due largely to the fall in oil prices, among other things, they’ve decided to make a move that hedges against future declines in the price of oil.
Kinder Morgan Inc (NYSE:KMI) has done this by using their newly added capital, which comes to them from decreasing their dividends, to launch a new ethanol hub in North Carolina, with Archer Daniels Midland (NYSE:ADM) and Baily Feed Mill. This new hub will feature a train rail facility and ethanol offloading system.
Already focusing on natural gas, Kinder Morgan Inc (NYSE:KMI) hedges themselves further by investing in biofuels such as ethanol. It should be interesting to follow this stock as the week goes on. Will the rebound continue?
The stock is up 1.98% or $0.3 following the news, hitting $15.44 per share. About 26.91M shares traded hands. KMI has declined 64.68% since May 19, 2015 and is downtrending. It has underperformed the S&P500 by 62.41%.
From a total of 10 analysts covering Kinder Morgan (NYSE:KMI) stock, 5 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $44 while the lowest target price is $15. The mean of all analyst targets is $29.30 which is 89.77% above today’s ($15.44) stock price. Kinder Morgan was the topic of 23 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 dived, 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 $33.76 billion. The Firm operates through six divisions: Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada and Other. It has 29.52 P/E ratio. The Natural Gas Pipelines segment includes interstate and intrastate pipelines and its liquefied natural gas (LNG) terminals.