Kinder Morgan (KMI) to Buyback $2.00 billion in Shares
Kinder Morgan (NYSE:KMI) announced that its Board of Directors has approved a share buyback plan, which allows the company to buyback $2.00 billion in shares on Wednesday, July 19th, EventVestor reports. This buyback authorization allows the pipeline company to repurchase up to 4.6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.
A number of analysts recently commented on KMI shares. Raymond James Financial, Inc. reaffirmed a “buy” rating on shares of Kinder Morgan in a research report on Saturday, July 22nd. Zacks Investment Research raised Kinder Morgan from a “sell” rating to a “hold” rating in a report on Tuesday, June 13th. Wolfe Research lowered Kinder Morgan from an “outperform” rating to a “market perform” rating and cut their price target for the stock from $26.00 to $21.00 in a report on Tuesday, May 30th. Morgan Stanley reaffirmed an “overweight” rating and issued a $25.00 price target on shares of Kinder Morgan in a report on Monday, July 3rd. Finally, Wells Fargo & Company reaffirmed an “outperform” rating and issued a $25.00 price target (down from $26.50) on shares of Kinder Morgan in a report on Monday, May 15th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Kinder Morgan presently has an average rating of “Buy” and an average price target of $23.91.
Kinder Morgan (KMI) traded up 0.82% during midday trading on Friday, reaching $18.55. The company’s stock had a trading volume of 11,593,869 shares. Kinder Morgan has a one year low of $18.23 and a one year high of $23.36. The firm has a 50 day moving average price of $19.65 and a 200 day moving average price of $20.40. The firm has a market cap of $41.43 billion, a P/E ratio of 61.22 and a beta of 0.64.
Kinder Morgan (NYSE:KMI) last released its quarterly earnings data on Wednesday, July 19th. The pipeline company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.15 by $0.01. Kinder Morgan had a net margin of 6.20% and a return on equity of 4.41%. The company had revenue of $3.37 billion for the quarter, compared to the consensus estimate of $3.12 billion. During the same period last year, the company earned $0.15 EPS. The firm’s revenue for the quarter was up 7.1% on a year-over-year basis. Equities research analysts forecast that Kinder Morgan will post $0.64 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 15th. Shareholders of record on Monday, July 31st were issued a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 2.70%. The ex-dividend date was Thursday, July 27th. Kinder Morgan’s dividend payout ratio (DPR) is presently 161.29%.
In other Kinder Morgan news, insider Richard D. Kinder bought 500,000 shares of the firm’s stock in a transaction dated Tuesday, May 30th. The shares were purchased at an average cost of $18.58 per share, for a total transaction of $9,290,000.00. Following the transaction, the insider now owns 234,712,353 shares of the company’s stock, valued at $4,360,955,518.74. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Dax Sanders bought 2,600 shares of the firm’s stock in a transaction dated Tuesday, May 30th. The shares were acquired at an average price of $18.60 per share, for a total transaction of $48,360.00. The disclosure for this purchase can be found here. Insiders have bought a total of 507,503 shares of company stock worth $9,437,597 over the last 90 days. Corporate insiders own 13.99% of the company’s stock.
About Kinder Morgan
Kinder Morgan, Inc is an energy infrastructure company. It operates through five segments. Its Natural Gas Pipelines segment is engaged in the ownership and operation of interstate and intrastate natural gas pipeline and storage systems, and liquefied natural gas facilities, among others. Its CO2 segment is engaged in the production, transportation and marketing of carbon dioxide (CO2) to oil fields and the ownership and operation of a crude oil pipeline system, among others.
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