Kinder Morgan, Inc. (NYSE:KMI) shareholders (or potential shareholders) will be happy to see that the Executive Chairman of the Board, Richard Kinder, recently bought a whopping US$6.2m worth of stock, at a price of US$20.72. While that only increased their holding size by 0.1%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Kinder Morgan
In fact, the recent purchase by Executive Chairman of the Board Richard Kinder was not their only acquisition of Kinder Morgan shares this year. They previously made an even bigger purchase of US$8.0m worth of shares at a price of US$19.95 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$19.17). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 4.89m shares worth US$97m. But they sold 402676 shares for US$8.4m. In the last twelve months there was more buying than selling by Kinder Morgan insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Kinder Morgan
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Kinder Morgan insiders own 14% of the company, currently worth about US$5.9b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Kinder Morgan Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Kinder Morgan. Looks promising! Of course, the future is what matters most. So if you are interested in Kinder Morgan, you should check out this free report on analyst forecasts for the company.
Of course Kinder Morgan may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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