Kinder Morgan Recent Insider Activity

Amy W Chronis, Director at Kinder Morgan KMI, disclosed an insider purchase on August 6, based on a new SEC filing.

What Happened: Chronis made a significant move by purchasing 9,732 shares of Kinder Morgan as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $200,986.

At Wednesday morning, Kinder Morgan shares are up by 2.15%, trading at $21.11.

Delving into Kinder Morgan's Background

Kinder Morgan is one of the largest midstream energy firms in North America, with an interest in or an operator on about 82,000 miles in pipelines and 139 storage terminals. The company is active in the transportation, storage, and processing of natural gas, crude oil, refined products, natural gas liquids, and carbon dioxide. The majority of Kinder Morgan's cash flows stem from fee-based contracts for handling, moving, and storing fossil fuel products.

Kinder Morgan: A Financial Overview

Revenue Growth: Over the 3 months period, Kinder Morgan showcased positive performance, achieving a revenue growth rate of 2.03% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.

Profitability Metrics: Unlocking Value

• Gross Margin: Achieving a high gross margin of 56.58%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Kinder Morgan's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.26.

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.

Market Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 18.95, Kinder Morgan's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.99 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 11.86, Kinder Morgan demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Delving Into the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Essential Transaction Codes Unveiled

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.

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