Kinder Morgan: Can the Stock End 2019 on a High Note?

Kinder Morgan stock is up roughly 24% so far in 2019. However, can the stock continue its uptrend in December? Interestingly, Kinder Morgan (KMI) stock fell in December in three out of the last five years. Although some investors believe this drop to be the result of tax-loss harvesting, that hypothesis isn’t supported by research.

The impact of such selling at the end of the year is very small if there’s any impact at all. Several other factors include the performance of the broader markets, commodity prices, and trade war developments. These factors may impact stocks’ performance figures in December.

Kinder Morgan: Can the Stock End 2019 on a High Note?

The S&P 500 Index fell 0.9% yesterday on news of tariffs on steel and aluminum imports from Brazil and Argentina. Kinder Morgan fell 1.1% yesterday.

Richard Kinder buys KMI stock

On November 26, Richard Kinder, Kinder Morgan’s executive chairman, bought 300,000 KMI shares at $19.74 per share. He owns 11.2% of the company’s outstanding shares. Kinder has been buying the company’s shares recently at prices close to $20.

Sarofim Fayez, Kinder Morgan’s director, also bought 200,000 of the company’s shares on November 20. Purchases by insiders are usually considered a positive indicator for any stock.

Short interest in KMI

According to data released on November 26, the short interest in Kinder Morgan stock fell by 8.5%. The number of shorted KMI shares fell to 31.6 million on November 15 from 34.6 million on October 31. A drop in short interest indicates that fewer investors expect the stock’s price to fall than those who expected it to fall at the end of October.

The company’s short interest as a percentage of its floating shares is 1.6%. While that represents a small portion of the company’s outstanding shares, short interest is often considered a useful barometer of investors’ sentiments regarding a stock.

Kinder Morgan’s moving averages

Kinder Morgan has fallen around 5% since November 15. The stock is now trading roughly 4% below its 50-day and 200-day moving averages. Kinder Morgan’s 50-day moving average fell below its 200-day average yesterday. If this trend sustains, it could be a bearish indicator for the stock in the near term.

Around 52% of the Reuters-surveyed analysts rate Kinder Morgan as a “buy,” and the remaining rate it as a “hold.” Kinder Morgan’s mean price target implies an upside of 14% from its current levels.

Several fundamental factors favor the company in the long term. For more, please read What Makes Kinder Morgan Stock Attractive? You can read about analysts’ ratings for KMI and its peers in Will Energy Pipeline Stocks Meet Analysts’ Ratings?