Kinder Morgan Fell 9% in a Month: What’s Next?
Kinder Morgan’s moving averages
Kinder Morgan (KMI) is trading 6% below its 50-day moving average and 8% below its 200-day moving average. The discount to the two averages indicates weakness in the stock. Kinder Morgan could continue to trade weak until it crosses above these key moving averages. Kinder Morgan’s 200-day moving average level might act as a resistance for the stock in the short term.
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As the above graph shows, Kinder Morgan has fallen 12% from its recent high of $19.63. Kinder Morgan has fallen 9% in the past month.
Of the analysts surveyed by Reuters, 45% rated Kinder Morgan as a “hold,” while 55% rated the stock as a “buy.” The consensus target price for Kinder Morgan in a year is $22. Kinder Morgan stock is trading at $17.24. If Kinder Morgan achieves its target price, it would imply 28% upside in a year.
On February 9, 2018, Morgan Stanley cut Kinder Morgan’s target price from $24 to $23.
As for Kinder Morgan’s peers, 62% of the analysts rated Targa Resources (TRGP) as a “buy.” In comparison, 74% of the analysts rated Energy Transfer Equity (ETE) as “buy” and 71% rated Williams Companies (WMB) as a “buy.”
Read ETE Has Fallen 13.5% from Its 2018 Highs: Can It Regain Momentum? for an update on Energy Transfer Equity’s recent price performance. For an earnings preview on Williams Companies, read Williams Companies and Williams Partners: A 4Q17 Earnings Preview.
Next, we’ll discuss the changes in Kinder Morgan’s short interest.