Will Kinder Morgan Maintain Its Upward Momentum?



Kinder Morgan’s price performance

Kinder Morgan (KMI) and Williams Companies (WMB) have each risen ~24% in 2019. In comparison, ONEOK (OKE) has risen ~27%. Kinder Morgan has outperformed Energy Transfer (ET) and Enterprise Products Partners (EPD), which have risen ~18% and ~16%, respectively, YTD (year-to-date). The Energy Select Sector SPDR ETF (XLE), which represents energy sector stocks in the S&P 500 Index, has risen ~16% during the same period.

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Moving averages

Kinder Morgan is trading ~10% above its 200-day moving average and ~12% above its 50-day moving average. Kinder Morgan crossed above these two moving averages in January. Since then, Kinder Morgan has stayed above the two averages. If Kinder Morgan’s 50-day moving average crosses above its 200-day average, it might signal an upward trend for the stock.

The above graph shows Kinder Morgan’s stock price over three years, along with its 50-day and 200-day moving averages.

Short interest

According to data released on February 11, the short interest in Kinder Morgan rose 8.5% from ~47.1 million shares on January 15 to ~51.1 million shares on January 31. Based on Kinder Morgan’s average trading volume, it will likely take three days to cover all of the open short positions in the stock.

In this series, we’ll analyze Kinder Morgan’s key financial metrics. First, we’ll discuss Kinder Morgan’s current valuation compared to its peers.


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