Recent insider trends for Kinder Morgan, Inc. (NYSE:KMI) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. KMI’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 60.52% of Kinder Morgan, Inc. (KMI)’s shares. The total value of these holdings, in millions, is $26,274. Among active positions in the latest quarter, 459 holders increased their positions by a total of 129.42 million shares, 528 holders decreased the positions by a total of 87.4 million shares, and 128 holders held their positions. This works out to a net increase in ownership of 42.02 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 69 holders initiated new positions by a total of 8.46 million shares and 92 holders exited their positions by a total of 14.92 million shares. This nets out to a decrease of 6.46 million shares and is another bearish sign for KMI.
In the last three months, insiders executed a total of 2 trades. 1 of these were buys and 1 were sells. Insider ownership increased by a total of 3957 shares, which suggests that KMI’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 8 buys and 2 sells, and ownership increased by a net of 1.22 million shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Kinder Morgan, Inc. (NYSE:KMI)’s short interest is 35.25 million shares, or % of the float. This represents an increase of 12% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that KMI is a Weak sell, which implies that KMI is expected to underperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Kinder Morgan, Inc. (NYSE:KMI) is overvalued.