Kinder Morgan (NYSE:KMI) Stock Falls 1.1% – Here’s Why

Kinder Morgan, Inc. (NYSE:KMI) shares were down 1.1% on Wednesday. The company traded as low as $31.61 and last traded at $31.81. 7,417,027 shares traded hands during trading, a decline of 39% from the average session volume of 12,150,937 shares. The stock had previously closed at $32.16.

Key Kinder Morgan News

Here are the key news stories impacting Kinder Morgan this week:

• Positive Sentiment: Jim Cramer said Kinder Morgan is undervalued after its recent decline, citing a valuation of roughly 19 times earnings and arguing that the stock “shouldn’t have” fallen as far. While this is commentary rather than a fundamental company announcement, it may reinforce the bullish case among retail investors. Jim Cramer Says Kinder Morgan Stock Shouldn’t Have Fallen This Far
• Positive Sentiment: Analysts at Zacks see conditions for another earnings beat, pointing to Kinder Morgan’s history of outperforming estimates and favorable earnings-prediction indicators. A beat could support the shares by validating expectations for continued earnings growth. Why Kinder Morgan Could Beat Earnings Estimates Again
• Positive Sentiment: Recent analysis argues that Kinder Morgan’s contracted pipeline operations continue to generate sufficient cash flow to support its dividend yield. This is important for income-oriented investors because dividend durability is a major part of the KMI investment thesis. Kinder Morgan: Pipeline Cash Flow Still Supports the Yield
• Neutral Sentiment: A comparison with Williams highlights that both companies rely on pipeline tolls rather than commodity production. The investment decision therefore depends on relative valuation, growth prospects, balance-sheet strength and dividend coverage rather than natural-gas prices alone. Williams vs Kinder Morgan: Which Is a Better Stock to Buy?
• Negative Sentiment: Dividend-stock screening coverage underscores that yield is only attractive when backed by ample cash-flow coverage. Although separate analysis supports KMI’s payout, the broader theme highlights the risk investors should monitor: weaker operating cash flow or higher financing needs could pressure the dividend and valuation. 5 Dividend Stocks With Fortress-Like Coverage and Room for Things to Go Wrong

Analyst Ratings Changes

A number of equities analysts have weighed in on KMI shares. Morgan Stanley set a $33.00 price objective on shares of Kinder Morgan in a research report on Thursday, September 17th. Citigroup reaffirmed a “neutral” rating on shares of Kinder Morgan in a research report on Wednesday, July 29th. Royal Bank Of Canada increased their price target on Kinder Morgan from $35.00 to $36.00 and gave the company a “sector perform” rating in a report on Tuesday, September 22nd. Stifel Nicolaus began coverage on Kinder Morgan in a research note on Wednesday, September 9th. They set a “hold” rating and a $35.00 price objective for the company. Finally, Capital One Financial assumed coverage on Kinder Morgan in a report on Tuesday, September 22nd. They set an “equal weight” rating and a $36.00 price objective on the stock. Eight research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, Kinder Morgan presently has a consensus rating of “Hold” and an average target price of $35.77.

Kinder Morgan Price Performance

The company has a 50 day moving average of $31.46 and a 200-day moving average of $32.06. The stock has a market capitalization of $70.83 billion, a P/E ratio of 20.39, a PEG ratio of 2.21 and a beta of 0.59. The company has a quick ratio of 0.36, a current ratio of 0.46 and a debt-to-equity ratio of 0.91.

Kinder Morgan (NYSE:KMI) last released its earnings results on Wednesday, July 22nd. The pipeline company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.06. The firm had revenue of $4.48 billion during the quarter, compared to analyst estimates of $4.22 billion. Kinder Morgan had a net margin of 19.31% and a return on equity of 10.46%. The firm’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.28 earnings per share. Kinder Morgan has set its FY 2026 guidance at 1.360-1.360 EPS. Sell-side analysts predict that Kinder Morgan, Inc. will post 1.55 EPS for the current year.

Kinder Morgan Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Monday, August 3rd were given a dividend of $0.2975 per share. This represents a $1.19 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend was Monday, August 3rd. Kinder Morgan’s dividend payout ratio is currently 76.28%.

Insiders Place Their Bets

In related news, VP Michael Garthwaite sold 1,550 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $30.80, for a total transaction of $47,740.00. Following the sale, the vice president owned 48,863 shares in the company, valued at $1,504,980.40. This represents a 3.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 12.72% of the stock is currently owned by company insiders.

Institutional Trading of Kinder Morgan

A number of institutional investors and hedge funds have recently made changes to their positions in KMI. BlackRock Inc. increased its position in Kinder Morgan by 1.1% in the second quarter. BlackRock Inc. now owns 175,834,246 shares of the pipeline company’s stock worth $5,621,421,000 after buying an additional 1,875,143 shares during the period. State Street Corp grew its position in shares of Kinder Morgan by 4.3% during the second quarter. State Street Corp now owns 130,863,419 shares of the pipeline company’s stock worth $4,183,704,000 after acquiring an additional 5,361,578 shares during the last quarter. Bank of America Corp DE grew its position in shares of Kinder Morgan by 1.4% during the first quarter. Bank of America Corp DE now owns 62,018,394 shares of the pipeline company’s stock worth $2,079,477,000 after acquiring an additional 836,571 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Kinder Morgan by 2.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 17,237,384 shares of the pipeline company’s stock worth $577,998,000 after acquiring an additional 448,130 shares during the period. Finally, Amundi increased its holdings in shares of Kinder Morgan by 5.8% in the 1st quarter. Amundi now owns 15,130,700 shares of the pipeline company’s stock worth $507,332,000 after acquiring an additional 831,125 shares during the period. 62.52% of the stock is currently owned by institutional investors and hedge funds.

About Kinder Morgan

Kinder Morgan, Inc (NYSE: KMI) is an energy infrastructure company that owns and operates pipelines, terminals, and storage facilities. Its assets primarily transport and store natural gas, crude oil, refined petroleum products, and carbon dioxide, supporting energy producers, utilities, refiners, industrial companies, and other customers.

The company’s natural gas business includes interstate and intrastate pipelines, gathering and processing systems, and underground storage facilities.