A look at the shareholders of Kinder Morgan, Inc. can tell us. (NYSE: KMI) for the strongest group. We can see that organizations own the lion’s share of the company at 62%. That is, the group will benefit the most if the stock goes up (or loses the most in the event of a downturn).
Losing money on investments is something that no shareholder enjoys, least of all the institutional investors who saw the value of their holdings drop 5.5% last week. However, a one-year return of 12% for shareholders probably softens the blow. However, they should be aware of more losses in the future.
Let’s dive into each type of Kinder Morgan owner, starting with the chart below.
Before we look at the property breakdown, you might want to know that our analysis points to it KMI is probably undervalued!
What does corporate ownership tell us about Kinder Morgan?
Institutional investors usually compare their returns to the returns of a commonly followed index. So they generally consider buying larger companies included in the relevant benchmark.
We can see that Kinder Morgan has institutional investors; They own a large share of the company’s shares. This means that analysts working at those institutions have looked at the stock and liked it. But like everyone else, they can be wrong. When multiple institutions own a stock, there is always a risk that you will be in a “busy trade.” When such a trade goes wrong, multiple parties may compete to sell shares quickly. This risk is higher in a company that has no history of growth. You can check out Kinder Morgan’s earnings and historical revenue below, but keep in mind that there’s always more to the story.
Investors should note that institutions already own more than half of the company, so collectively they can exercise significant power. Hedge funds don’t own a lot of stock in Kinder Morgan. Our data indicates that Richard Kinder, who is also the company’s CEO, holds the largest number of shares at 11%. When an insider owns a large amount of company stock, investors consider it a positive sign because it indicates that insiders are willing to limit their fortunes in the future of the company. With 7.7% and 7.3% of shares outstanding, respectively, The Vanguard Group, Inc. and BlackRock, Inc. The second and third largest shareholders.
Looking at the record of the shareholders, we can see that 50% of the ownership is held by the 25 largest shareholders, which means that not a single shareholder has a majority stake in the ownership.
While it makes sense to study a company’s corporate ownership data, it also makes sense to study analyst sentiment to see which direction the wind is blowing. There are a fair number of analysts covering stocks, so it can be helpful to know their overall view of the future.
Kinder Morgan’s property inside
The definition of company insiders can be subjective and does not vary across jurisdictions. Our data reflects individual insiders, capturing directors at the very least. Management ultimately responds to the board of directors. However, it is not uncommon for directors to be members of the executive board, especially if they are a founder or CEO.
Most consider insider ownership a positive because it can indicate that the board of directors is well aligned with other shareholders. However, in some cases, a lot of power is concentrated within this group.
Our information indicates that insiders hold a significant holding in Kinder Morgan, Inc.. It is very interesting to see that insiders have a significant stake of $4.9 billion in this $39 billion business. Good to see this level of investment. You can check here to see if these insiders have recently purchased.
public property
The general public – including retail investors – owns a 25% stake in the company and thus cannot be easily ignored. While this group cannot necessarily make decisions, it certainly can have a real impact on how the company is run.
Next steps:
I find it interesting to know exactly who owns a company. But to really gain insight, we need to consider other information as well. To this end, you should be familiar with 2 warning signs We spotted with Kinder Morgan.
But in the end It’s the future, and not the past, will determine how well the owners of that business perform. So we think it’s a good idea to take a look at this free report which shows whether analysts are expecting a brighter future.
Note: The numbers in this article are calculated using data from the last twelve months, which refers to the 12-month period ending on the last date of the month in which the financial statement was dated. This may not be consistent with the annual report figures for the full year.
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This article by Simply Wall St is general in nature. We provide comments based only on historical data and analyst expectations using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, nor does it take into account your objectives or financial situation. We aim to provide you with focused, long-term analysis driven by essential data. Note that our analysis may not include the company’s most recent price-sensitive ads or quality materials. Wall Street simply has no position in any of the stocks mentioned.
Evaluation is complex, but we help simplify it.
Find out if Kinder Morgan potentially overvalued or undervalued by checking out our comprehensive analysis, which includes Fair value estimates, risks, warnings, dividends, insider transactions and financial soundness.
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from San Jose News Bulletin https://sjnewsbulletin.com/institutional-investors-in-kinder-morgan-inc-nysekmi-saw-a-decline-of-2-3-billion-in-market-capitalization-last-week-although-long-term-gains-were-taken-advantage-of/
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