Insiders Are Buying Energy Stocks: Kinder Morgan (KMI) and Bolt Technology Corp (BOLT)

Last Friday, May 9th, the Energy sector witnessed high insider activity. Amongst the stocks that insiders bought, a couple caught my eye in account of their below-average valuations coupled with generous dividend yields. Let’s take a look at these companies in order to elucidate if they could stand as attractive investment options (and, thus, deserve further research):

First off is Kinder Morgan Inc (NYSE:KMI), a $33.3 billion market cap energy transportation and storage company, which saw its Chairman and CEO (and more than 10% owner), Richard D. Kinder, acquire 100,000 shares of Class P Common Stock. These shares were purchased in multiple transactions, at prices ranging from $32.26 per share to $32.47 per share, inclusive. Mr. Kinder now owns more than 231 million shares, worth about $7.5 billion.

Kinder Morgan Inc (NYSE:KMI)

Kinder Morgan’s stock trades at 27.9 times the company’s earnings, compared to an Oil & Gas Midstream industry P/E average of about 39.20, and yields about 5.23% of the current stock price in the form of dividends. In addition, more than 40 hedge funds hold long positions in the stock. The largest hedge fund shareholder, Stephen Mandel’s Lone Pine Capital, last declared owning more than 69.9 million shares of the company. Other prominent investors betting on this company are Barry Rosenstein (Jana Partners), who last declared having stared a position in the stock with 15.5 million shares, and Daniel S. Och (Oz Management), who increased his stakes by 8%, to 12.7 million shares, over the last reported quarter.

The second company in this list is substantially smaller: its market cap only reaches $145 million. Bolt Technology Corp. (NASDAQ:BOLT) develops, manufactures and sells marine seismic data acquisition equipment and underwater remotely operated robotic vehicles. Last Friday, Raymond M. Soto, CEO and Chairman, acquired 5,000 shares of Common Stock for $16.22 per share. He currently holds 208,747 shares directly.

Just like in the previous case, Bolt’s stock also trades at a significant discount in relation to its peers’ average valuation -at a P/E of 14.50 versus an Oil & Gas Equipment & Services industry average of around 24.30 P/E. The dividend yield of 2.20% is also quite generous, so one can understand Mr. Soto’s bet. And he seems to be not the only one bullish about this stock. Jim Simons’ Renaissance Technologies last upped its stakes by 2%, to 194,800 shares, and John W. Rogers’ Ariel Investments, by 22%, to 554,021.

 

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Two Small-Cap Consumer Cyclical Stocks That Insiders Are Buying

ValueAct Capital Buys More Than $116 Million in Microsoft (MSFT) Shares

AOL, Inc. (AOL), F.N.B. Corp (FNB): Mid-Cap Stocks That Insiders Like

 

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!