Does a RBC Capital Markets Downgrade Make Shares of Kinder Morgan (NYSE:KMI) a Sell?


Kinder Morgan (NYSE:KMI) Receives a Downgrade

In a comprehensive report finalized on Wednesday morning, RBC Capital Marketsdecided to downgrade shares of Kinder Morgan (NYSE:KMI) from their Outperform rating to a Sector Perform. The brokerage firm currently has a $19.00 target price on the stock.

From a total of 16 analysts covering Kinder Morgan (NYSE:KMI) stock, 14 rate it a ”Buy”, 0 a “Sell”, and 5 a ”Hold”. This means that 74% of the ratings are positive. The highest target price is $45 while the lowest target price is $15. The mean of all analyst targets is $26.75 with a 85.41% above today’s ($16.72) stock price. Kinder Morgan was the topic of 21 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. Argus Research downgraded shares on December 3 to “Hold” rating. Argus Research maintained shares with “Buy” rating and $35 target share price in a report from a November 10. Stifel Nicolaus downgraded KMI stock in a recent report from October 22 to “Hold” rating. Finally, Tudor Pickering downgraded the stock to “Buy” rating in a report issued on an August 14.

Approximately 162.53M shares of stock traded hands or 337.14% up from the average. Kinder Morgan Inc (NYSE:KMI) has declined 63.16% since May 6, 2015 and is downtrending. It has underperformed by 62.36% the S&P500.

The overall sentiment of institutions has decreased to 1.13 in Q2 2015. Its down 0.05, from 1.18 in 2015Q2. The ratio turned negative, as 132 institutions have sold all the shares of Kinder Morgan Inc that they owned while 388 funds have taken shares off the table. 90 funds have purchased shares for the first time while 500 added to their positions. These institutions now hold 1.21 billion shares or 2.95% more than the 1.17 billion shares they owned in 2015Q2.

The Fund Highstar Capital Lp currently is holding shares equating to 100% of its total portfolio in Kinder Morgan Inc representing a total of 68.87 million shares. Another fund,Travelers Companies Inc., is holding a total of 1.64 million shares equating to 15.15% of their holdings. Additionally, C V Starr & Co Inc has a 92,631 share stake in Kinder Morgan Inc which represents 13.55% of their total portfolio. The Fund, Rare Infrastructure Ltd, based out of Australia, has also built up a stake in the stock, which represents a total of 10.54% of their total portfolio. Finally Endurance Wealth Management Inc., a fund which is based in the state of Rhode Island reported a total holdings of 1.65 million shares.

Kinder Morgan, Inc. is an energy infrastructure and energy firm in North America. The company has a market cap of $36.27 billion. The Firm operates through six divisions: Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada and Other. It has 31.96 P/E ratio. The Natural Gas Pipelines segment includes interstate and intrastate pipelines and its liquefied natural gas (LNG) terminals.

According to Zacks Investment Research, “Kinder Morgan, Inc. is engaged in energy transportation and storage in North America. The Company handles energy products like natural gas, refined petroleum products, crude oil, ethanol, coal and carbon dioxide (CO2). The Company operates: natural gas pipelines in the Rocky Mountains, the Midwest and Texas; refined petroleum products pipeline in North America; terminals for the storage of petroleum products and chemicals and CO2 pipelines and oil producing fields. Kinder Morgan, Inc. is headquartered in Houston, Texas.” Get a free copy of the Zacks research report on Kinder Morgan Inc (KMI).