CEO of Kinder Morgan's $17 Million Insider Buy

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Jun 25, 2013
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On June 24 the Chairman, CEO and 10% Owner of Kinder Morgan (KMI), Richard Kinder, bought 500,000 shares of his company’s stock.

Kinder added these 500,000 shares at an average price of $35.78 per share for a total transaction amount of $17,889,999. Since his most recent buy, the price per share has increased approximately 4.11%. Kinder’s buy marks the first insider buy for the company since November 2012.

Richard Kinder remains the largest holder of Kinder Morgan stock, maintaining a total of at least 241,372,511 shares. His holdings represent about 27% of the shares outstanding for the company.

Insider activity for Kinder Morgan:



Kinder Morgan is the largest midstream and the third largest energy company in North America. The company owns 80,000 miles of pipelines and 180 terminals. The pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide and more. The company’s customers include major oil companies, energy producers and shippers, local distribution companies and businesses across many industries.

The Kinder Morgan family of companies has four publicly traded entities: Kinder Morgan Inc. (KMI), Kinder Morgan Energy Partners (KMP), Kinder Morgan Management (KMR) and El Paso Pipeline Partners (EPB). Combined, the Kinder Morgan companies have an enterprise value of approximately $115 billion.

The analysis on Kinder Morgan reports:

· The revenue has been in decline for the past three years

· The company has issued $1.6 billion of debt in the past three years.

· Dividend yield is close to a 3-year high.

· The P/S ratio is close to a 2-year high.

Kinder Morgan has a market cap of $38.6 billion; its shares were traded at around $37.25 with a P/E ratio of 54.10 and a P/S ratio of 4.80. The dividend yield for the company is 3.90%. The current annualized dividend paid by Kinder Morgan is $1.52 per share currently paid in quarterly installments.

Kinder Morgan’s historical price, revenue and net income:

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Kinder Morgan’s P/S and P/B ratios:

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According to the Peter Lynch Valuation Chart, Kinder Morgan appears to be overvalued:

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There are currently six gurus that hold a stake in Kinder Morgan. Click here to see their holding histories.