Finance

Should You Invest in Kinder Morgan, Inc. (KMI)? A Look at the Insider Trends

Recent insider trends for Kinder Morgan, Inc. (NYSE:KMI) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how KMI might perform in the future.

Institutions own 61.92% of Kinder Morgan, Inc. (KMI)’s shares. The total value of these holdings, in millions, is $23,703. Among active positions in the latest quarter, 402 holders increased their positions by a total of 104.38 million shares, 540 holders decreased the positions by a total of 64.53 million shares, and 134 holders held their positions. This works out to a net increase in ownership of 39.85 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 67 holders initiated new positions by a total of 10.92 million shares and 84 holders exited their positions by a total of 6.78 million shares. This nets out to an increase of 4.14 million shares and is a bullish sign for KMI.

In the last three months, insiders executed a total of 1 trades. 1 of these were buys. Insider ownership increased by a total of 3000 shares, which suggests that KMI’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 8 buys and 2 sells, and ownership increased by a net of 519762 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Kinder Morgan, Inc. (NYSE:KMI)’s short interest is 51.46 million shares, or % of the float. This represents a decrease of -4% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.

Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for KMI. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that KMI is a sell, which implies that KMI is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Kinder Morgan, Inc. (NYSE:KMI) is overvalued.

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