Amy Chronis, a director at
Kinder Morgan (KMI), recently bought 2,241 shares. The buy increased her stake by 10%, and came to a total cost of $55,790. Chronis was the last insider to buy with a 9,732 share buy back in August for just over $200,000.
These are the only insider buys over the past two years. Otherwise, insiders have generally been sellers of shares, mostly at the VP level. However, the company’s President also sold 100,000 shares earlier this year.
Overall, Kinder Morgan insiders own 12.8% of shares.
The oil and gas pipeline network is up 62% over the past year, roughly double the returns of the overall stock market. That’s also bucked the trend of weaker energy prices.
Revenues are down 5%, but overall earnings are up 17%. And the pipeline sports a 17% profit margin, a relatively high amount for the energy infrastructure space.
Action to take: Investors may like shares here, or on any pullback. Increased energy production should benefit Kinder Morgan’s pipeline operations, irrespective of the price of oil or natural gas.
Plus, at current prices, shares pay a 4.4% dividend.
For traders, shares have been trending higher over the past year, and just spiked higher. There may be a short-term pullback, but the longer-term trend is in place. The March 2025 $28 calls, last trading for about $0.80, could see mid-to-high double-digit returns.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.