uploads/2019/03/analyst-recom-3-1.jpg

KMI, OKE, and WMB: Changes in the Short Interest

By

Updated

Short interest

According to the data released on March 26, the short interest in Kinder Morgan (KMI) rose 16.6% on March 15. The short interest in Kinder Morgan is ~53 million shares. As a measure of the open short positions in a stock, a rise in the short interest indicates that more Kinder Morgan shares were sold short. An investor shorts a stock when the price is expected to fall in the near term. A rise in the short interest in Kinder Morgan might indicate bearish investor sentiment for the stock in the near term.

Recently, the short interest in ONEOK (OKE) rose 16.8%. In comparison, the short interest in Williams Companies (WMB) fell 9.2%.

Article continues below advertisement

Analysts’ recommendations

Around 90% of the analysts surveyed by Reuters rated Williams Companies as a “buy” or “strong buy.” Williams Companies’ discounted valuation compared to its historical valuation might have contributed to the positive recommendations. Williams Companies’ 50-day moving average crossing above its 200-day average and the recent fall in its short interest are bullish signs in the near term. Based on the median target price of $31, Williams Companies has an upside potential of 8% from its current price.

Around 86% of the analysts rated Kinder Morgan as a “buy.” Kinder Morgan’s valuation looks attractive compared to its peers. Based on analysts’ median target price of $21, Kinder Morgan has an upside potential of 4%.

Only 59% of the analysts rated ONEOK as a “buy,” while 41% rated it as a “hold.” Based on the median target price of $70, ONEOK has an upside potential of ~1% from its current price.

Advertisement

More From Market Realist