Insider Selling: Michael C Morgan Unloads $4.30M Of Kinder Morgan Stock

Michael C Morgan, Director at Kinder Morgan KMI, executed a substantial insider sell on February 20, according to an SEC filing.

What Happened: Morgan's decision to sell 160,000 shares of Kinder Morgan was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $4,295,800.

At Friday morning, Kinder Morgan shares are down by 0.41%, trading at $26.48.

Get to Know Kinder Morgan Better

Kinder Morgan is one of the largest midstream energy firms in North America, with an interest in or an operator on about 80,000 miles of gas, refined products, and carbon dioxide pipelines. The company also owns one of the largest portfolios of gas and refined products storage and terminals. Most of Kinder Morgan's cash flows stem from fee-based contracts for handling, moving, and storing fossil fuel products.

Key Indicators: Kinder Morgan's Financial Health

Revenue Growth: Kinder Morgan's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -1.26%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 53.98%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Kinder Morgan's EPS reflects a decline, falling below the industry average with a current EPS of 0.3.

Debt Management: Kinder Morgan's debt-to-equity ratio is below the industry average. With a ratio of 1.04, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: Kinder Morgan's P/E ratio of 22.73 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.91 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 13.46 positions the company as being more valued compared to industry benchmarks.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Unmasking the Significance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Kinder Morgan's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.