Traders Purchase Large Volume of Kinder Morgan Put Options (NYSE:KMI)

Kinder Morgan, Inc. (NYSE:KMI) was the target of some unusual options trading activity on Tuesday. Investors acquired 32,488 put options on the company. This is an increase of approximately 52% compared to the average daily volume of 21,350 put options.

Kinder Morgan Stock Up 0.1%

Shares of Kinder Morgan stock opened at $33.92 on Wednesday. Kinder Morgan has a twelve month low of $23.94 and a twelve month high of $34.24. The company has a quick ratio of 0.50, a current ratio of 0.64 and a debt-to-equity ratio of 0.95. The company’s 50 day moving average is $29.77 and its 200 day moving average is $28.00. The company has a market cap of $75.47 billion, a price-to-earnings ratio of 24.76, a price-to-earnings-growth ratio of 2.79 and a beta of 0.68.

Kinder Morgan (NYSE:KMI) last announced its earnings results on Wednesday, January 21st. The pipeline company reported $0.39 earnings per share for the quarter, beating analysts’ consensus estimates of $0.37 by $0.02. The business had revenue of $4.51 billion during the quarter, compared to analyst estimates of $4.33 billion. Kinder Morgan had a net margin of 18.04% and a return on equity of 9.02%. The company’s quarterly revenue was up 13.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.30 EPS. Research analysts anticipate that Kinder Morgan will post 1.25 EPS for the current year.

Kinder Morgan Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Shareholders of record on Monday, February 2nd were given a $0.2925 dividend. This represents a $1.17 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend was Monday, February 2nd. Kinder Morgan’s dividend payout ratio (DPR) is presently 85.40%.

Trending Headlines about Kinder Morgan

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

• Positive Sentiment: Goldman Sachs reaffirmed its Buy rating and the company added roughly $900M of new gas projects to its backlog, supporting revenue visibility and reinforcing buy-side conviction. Kinder Morgan Adds $900M in New Gas Projects
• Positive Sentiment: Morgan Stanley raised its price target from $34 to $36 (still Equal Weight), which signals modest incremental upside from current levels and likely provided short-term support. Morgan Stanley Raises Price Target
• Positive Sentiment: Multiple industry write-ups highlight stronger natural gas demand (including LNG and data-center-driven power demand) as a tailwind for midstream earnings and cash flows, which benefits KMI as a large pipeline and storage operator. Zacks: Natural Gas Stocks to Gain
• Neutral Sentiment: KMI presented at the Raymond James Institutional Investor Conference — useful for investor outreach and transparency but not an immediate earnings surprise. Conference Transcript
• Neutral Sentiment: Heightened retail/institutional interest noted in coverage (Zacks feature on heavy searches) — increases liquidity and attention but not a directional catalyst by itself. Zacks: Investors Heavily Search KMI
• Negative Sentiment: Unusually large put option activity — 32,488 puts traded (~52% above typical volume) — suggests some market participants are positioning for downside or hedging exposure, which can increase short-term volatility and pressure.
• Negative Sentiment: MarketWatch flagged that KMI has underperformed peers despite daily gains, indicating the stock’s rally may lag the sector and could face relative selling if peer strength persists. MarketWatch: Underperformance vs. Competitors

Insider Buying and Selling at Kinder Morgan

In related news, Director William A. Smith acquired 3,000 shares of the stock in a transaction on Monday, February 2nd. The stock was acquired at an average price of $29.75 per share, for a total transaction of $89,250.00. Following the completion of the purchase, the director owned 31,087 shares of the company’s stock, valued at $924,838.25. This represents a 10.68% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP John W. Schlosser sold 6,166 shares of the stock in a transaction on Monday, January 5th. The stock was sold at an average price of $27.49, for a total value of $169,503.34. Following the completion of the sale, the vice president directly owned 201,204 shares in the company, valued at approximately $5,531,097.96. This represents a 2.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 46,498 shares of company stock valued at $1,382,115 over the last ninety days. Company insiders own 12.73% of the company’s stock.

Hedge Funds Weigh In On Kinder Morgan

Institutional investors have recently made changes to their positions in the business. LFA Lugano Financial Advisors SA bought a new position in Kinder Morgan in the second quarter worth approximately $26,000. Board of the Pension Protection Fund purchased a new stake in shares of Kinder Morgan in the 4th quarter worth $27,000. Commonwealth Retirement Investments LLC bought a new position in Kinder Morgan in the 4th quarter worth $27,000. Acumen Wealth Advisors LLC purchased a new position in Kinder Morgan during the fourth quarter valued at $28,000. Finally, Dorato Capital Management bought a new stake in Kinder Morgan during the fourth quarter valued at about $30,000. Institutional investors own 62.52% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the stock. Scotiabank upped their price target on shares of Kinder Morgan from $29.00 to $30.00 and gave the stock a “sector perform” rating in a research note on Friday, January 23rd. UBS Group reiterated a “buy” rating and issued a $38.00 target price on shares of Kinder Morgan in a research note on Friday, December 12th. Barclays reissued an “overweight” rating on shares of Kinder Morgan in a research report on Friday, February 20th. Mizuho lowered their price objective on Kinder Morgan from $32.00 to $31.00 and set an “outperform” rating on the stock in a research report on Friday, November 14th. Finally, Morgan Stanley lifted their target price on Kinder Morgan from $34.00 to $36.00 and gave the stock an “equal weight” rating in a report on Tuesday. Eight analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $32.62.

About Kinder Morgan

Kinder Morgan (NYSE: KMI) is a large energy infrastructure company that owns and operates an extensive network of pipelines and terminals across North America. Its core activities center on the transportation, storage and handling of energy products, including natural gas, natural gas liquids (NGLs), crude oil, refined petroleum products and carbon dioxide. The company’s assets include long-haul and gathering pipelines, storage facilities, and multi-modal terminals that serve producers, refiners, utilities and industrial customers.

Kinder Morgan’s operations deliver midstream services such as pipeline transportation, terminaling, storage and related logistics and maintenance.