Kinder plans $1.6 bln convertible deal, shares fall

These two business units grew earnings last quarter by 29% and 6%, respectively, due to higher volumes. Analysts now have a consensus estimate of a loss of $0.08 per share on revenue of $1.70 billion for AK Steel Holding Corporation (NYSE:AKS)’s third quarter. The firm earned $3.71 billion during the quarter, compared to the consensus estimate of $3.83 billion. During the same quarter in the prior year, the business posted $0.32 earnings per share.

Kinder Morgan’s DCF covered its dividend payments by $228 million over the first nine months of the year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th.

KMI has been the topic of a number of other reports. Shareholders of record on Monday, November 2nd will be paid a $0.51 dividend.

Dividends on our mandatory convertible preferred stock will be payable on a cumulative basis when, as and if declared by our board of directors, or an authorized committee of our board of directors, at an annual rate of % on the liquidation preference of $1,000 per share. The ex-dividend date of this dividend is Thursday, October 29th. Kinder Morgan recently raised its dividend by 16% year-over-year, and the stock now yields 7.2%, which could make it an attractive pick for income investors.

Due to Kinder Morgan’s steady business model and lower vulnerability to changes in commodity prices, the company generates healthy cash flow, even when oil prices are in decline. The primary factors that have impacted our rating are mixed – a few indicating strength, a few showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, Kean Steven J, CEO of Kinder Morgan, Inc., executed a transaction worth $241,275 on August 21, 2015. Jefferies Group dropped their price target on shares of Kinder Morgan to $33.00 in a research note on Friday, September 11th. Zacks lowered Kinder Morgan from a “hold” rating to a “sell” rating in a research note on Tuesday, September 15th. Seven investment analysts have rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. The stock has an average rating of “Buy” and a consensus price target of $42.22.

In the previous article, we analyzed Kinder Morgan’s (KMI) 3Q15 operating results.

Kinder Morgan’s 3Q15 revenue miss can be attributed to lower-than-expected performance from its Natural Gas Pipelines and Carbon dioxide segments. The Natural Gas Pipelines segment comprises interstate and intrastate pipelines and its own liquefied natural gas (LNG) terminals. The Products Pipelines segment includes condensate, crude oil and processed petroleum goods, and NGL pipelines and related terminals, Southeast terminals, and its transmix processing facilities.