Kinder Morgan: What Top Institutional Investors Are Doing

In the third quarter of 2019, top institutional investors added to their Kinder Morgan (KMI) positions. Tortoise Capital Advisors bought 9.5 million Kinder Morgan shares during the quarter. That was the biggest addition among the company’s top 10 investors. Tortoise Capital Advisors is the seventh-largest institutional investor in Kinder Morgan. It owns 33.9 million Kinder Morgan shares, which account for 1.5% of the company’s total outstanding shares.

Kinder Morgan: What Top Institutional Investors Are Doing

Kinder Morgan’s top institutional investors

The above table lists the top 10 investors in Kinder Morgan. Richard Kinder, the company’s executive chairman, owns 11.2% of its outstanding shares. According to a filing dated November 11, he bought 0.3 million KMI shares.

The Vanguard Group is the second-largest institutional investor in Kinder Morgan. It owns 7.3% of the company’s outstanding shares and added 1.5 million shares to its position in Q3. On the other hand, State Street Global Advisors, the third-largest investor, sold 0.8 million KMI shares in Q3. It owns 4.3% of the company’s outstanding shares.

The top 10 investors together added around 10.3 million KMI shares to their positions in Q3. This likely indicates institutional investors’ bullish sentiments for the stock. Investors closely analyze institutional activity, as these large players are believed to be more knowledgeable about the company’s near- and longer-term prospects.

Richard Kinder’s position

During the third quarter, Richard Kinder bought 400,000 shares on August 23 at $19.95 per share. He again bought 300,000 shares on August 26 at $19.76 per share.

Kinder continued to add to his position in Q4. He bought 300,000 shares at $20.17 per share on October 29 and again 300,000 at $20.01 two days later. On November 11, he bought 300,000 shares at $19.97.

Kinder Morgan stock is trading close to an average of $20.4 and within a range of $19.40–$21.40 for the last nine months. Richard Kinder has been adding to his position opportunistically, at prices close to $20. This level has been acting as a support level for the stock.

Top buyers and sellers

Managed Account Advisors, not among KMI’s 10 largest investors, bought 15.1 million Kinder Morgan shares recently. Similarly, Salient Capital Advisor and Assenagon Asset Management S.A. bought 8.9 million and 5.2 million KMI shares, respectively. Bank of America Merrill Lynch was among the other top buyers. It bought 4.6 million KMI shares recently.

On the other hand, Renaissance Technologies sold 7.9 million shares, and the Commonwealth Bank of Australia sold 6.1 million KMI shares. Similarly, Advisory Research and Cohen & Steers Capital Management were among the other top sellers of KMI stock.

Learn about analysts’ recommendations for Kinder Morgan and other top midstream stocks in Top Midstream Energy Stocks: What Analysts Got Wrong. Moreover, learn more about KMI’s upside in What Makes Kinder Morgan Stock Attractive? To learn about the latest energy sector updates, refer to Market Realist’s Energy and Utilities page.