In the last year, many Kinder Morgan, Inc. (NYSE:KMI) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Kinder Morgan

The Last 12 Months Of Insider Transactions At Kinder Morgan

The President, Thomas Martin, made the biggest insider sale in the last 12 months. That single transaction was for US$2.1m worth of shares at a price of US$21.01 each. That means that even when the share price was below the current price of US$24.95, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 7.7% of Thomas Martin's stake.

Over the last year we saw more insider selling of Kinder Morgan shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At Kinder Morgan Have Sold Stock Recently

There was substantially more insider selling, than buying, of Kinder Morgan shares over the last three months. We note insiders cashed in US$3.2m worth of shares. On the flip side, Independent Director Amy Chronis spent US$201k on purchasing shares (as mentioned above) . Generally this level of net selling might be considered a bit bearish.

Insider Ownership Of Kinder Morgan

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Kinder Morgan insiders own 13% of the company, currently worth about US$7.0b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.