Kinder Morgan: A 14.6% Better Bargain Than When Smith Bought

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on January 22, Kinder Morgan Inc.'s Director, William A. Smith, invested $107,342.95 into 5,500 shares of KMI, for a cost per share of $19.52. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Friday, bargain hunters could buy shares of Kinder Morgan Inc. (Symbol: KMI) and achieve a cost basis 14.6% cheaper than Smith, with shares changing hands as low as $16.66 per share. It should be noted that Smith has collected $0.33/share in dividends since the time of their purchase, so they are currently down 12.9% on their purchase from a total return basis. Kinder Morgan Inc. shares are currently trading up about 0.8% on the day. The chart below shows the one year performance of KMI shares, versus its 200 day moving average:

Kinder Morgan Inc. Chart

Looking at the chart above, KMI's low point in its 52 week range is $14.69 per share, with $21.25 as the 52 week high point - that compares with a last trade of $16.82. By comparison, below is a table showing the prices at which KMI insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
12/05/2017 Thomas A. Martin V.P. (Pres.,Nat.Gas Pipelines) 3,000 $17.09 $51,285.00
01/22/2018 William A. Smith Director 5,500 $19.52 $107,342.95

The current annualized dividend paid by Kinder Morgan Inc. is $0.8/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 04/27/2018. Below is a long-term dividend history chart for KMI, which can be of good help in judging whether the most recent dividend with approx. 4.8% annualized yield is likely to continue.


Click here to find out which 9 other energy stock bargains you can buy cheaper than insiders »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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