Last week, Kinder Morgan (KMI) shares got hammered on reports that a report on its accounting would be forthcoming–and that it would not be flattering. On Wednesday, the day of the as-yet-unreleased report’s first mention, Kinder Morgan’s stock fell 6%.
Reuters But there’s no better way to boost confidence in your company than buying shares–and that’s exactly what CEO Richard Kinder has done. According to a filing with the SEC, Kinder bought 500,000 shares of Kinder Morgan for $35.7375 today, or nearly $18 million worth. Clearly, he sees the recent weakness as a buying opportunity.
Kinder’s timing is especially interesting considering that the report, from Hedgeye Risk Management, is set to be released tomorrow. Hedgeye’s report on Linn Energy (LINE) helped drive those shares down 31% this year.
Kinder’s little boost of confidence appears to have worked today. Kinder Morgan’s shares have gained 3% to $36.28 today, while Kinder Morgan Energy Partners (KMP) has ticked up 0.2% to $80.38. Kinder Morgan Management (KMR) has dropped 1.7% to $75.41.
Kinder’s not the only one trying to support the stock. Deutsche Bank’s Curt Launer and Barclays’ Richard Gross both defended Kinder Morgan after word of the report’s existence hit last week.
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