What Could Help Kinder Morgan Stock?
Kinder Morgan trades weak
Kinder Morgan (KMI) stock is trading near its 52-week low of $17.59. The stock continues to trade weak at 6.2% below its 50-day moving average and 11.2% below its 200-day moving average. Its 50-day moving average might act as a resistance level for the stock in the near term.
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As the above graph shows, Kinder Morgan’s 50-day moving average crossed below its 200-day average in April, which indicates a bearish trend. Kinder Morgan has fallen nearly 18% YTD (year-to-date). Kinder Morgan underperformed the broader energy sector YTD. The Energy Select Sector SPDR ETF (XLE) has fallen nearly 8% YTD.
Sustained weakness in energy commodity prices severely impacted energy companies’ performance. After the dividend cut in 2015, income investors likely don’t see Kinder Morgan as an attractive option. Currently, the stock yields ~2.8%. In comparison, Enterprise Products Partners (EPD) trades at a yield of ~6.7%, while Magellan Midstream Partners (MMP) yields ~5.1%.
With a relatively low yield compared to its midstream peers, Kinder Morgan stock might continue to trade weak until there’s a sustained recovery in energy commodity prices.
For a deeper analysis of Kinder Morgan’s operational performance, read Everything You Wanted to Know about Kinder Morgan.
In the next part, we’ll discuss how the short interest in Kinder Morgan stock changed recently.