Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on April 24, Michael C Morgan, Director at Kinder Morgan (NYSE:KMI), as per the latest SEC filing.
What Happened: Morgan opted to sell 230,000 shares of Kinder Morgan, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $4,328,600.
Kinder Morgan shares are trading down 0.4% at $18.73 at the time of this writing on Thursday morning.
About Kinder Morgan Kinder Morgan is one of the largest midstream energy firms in North America, with an interest in or an operator on about 82,000 miles in pipelines and 139 storage terminals. The company is active in the transportation, storage, and processing of natural gas, crude oil, refined products, natural gas liquids, and carbon dioxide. The majority of Kinder Morgan's cash flows stem from fee-based contracts for handling, moving, and storing fossil fuel products.
Kinder Morgan: Financial Performance Dissected Negative Revenue Trend: Examining Kinder Morgan's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -1.18% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Key Insights into Profitability Metrics:
- Gross Margin: The company maintains a high gross margin of 55.91%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Kinder Morgan's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.33.
Financial Valuation Breakdown:
- Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 17.26, Kinder Morgan's stock is perceived as being overvalued in the market.
- Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.74 as compared to the industry average, the stock might be considered overvalued based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 11.32, Kinder Morgan demonstrates exemplary market valuation, surpassing industry averages.
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Why Pay Attention to Insider Transactions Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Cracking Transaction Codes Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Kinder Morgan's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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