The Case for and Against Kinder Morgan, Inc. (KMI)

Kinder Morgan, Inc. (KMI) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Pipelines. The stock has been active on the tape, currently trading at $16.50, down from yesterday’s close by -0.30%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Kinder Morgan, Inc. (KMI) currently trades with a market capitalization of $35.69 Billion. That value represents a market adjusting for revenues that have been growing by 7.17 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $1.79 Billion over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.21 on a per share basis this quarter. Perhaps, that suggests something about why 12.64% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Kinder Morgan, Inc. recorded a 52-week high of $21.92. It is now trading 5.42% off that level. The stock is trading $17.75 its 50-day moving average by 1.25%. The stock carved out a 52-week low down at $15.86.

In recent action, Kinder Morgan, Inc. (KMI) has made a move of -4.62% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 16.68, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 3.25% with $1.89 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of KMI.

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