Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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 Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!