Insiders Buy Natural Gas Stocks: 2 for the Watchlist

Insiders are buying natural gas stocks because natural gas is critical to greenification and global energy security. The takeaway from today’s article is that international trends are driving demand surges expected to drive business for middleman operators like Kinder Morgan (NYSE: KMI) and NextDecade (NASDAQ: NEXT).

As liquefiers, storers, and transporters of liquefied natural gas (LNG), they are well-positioned to benefit from a growing number of long-term, visible contracts that ensure revenue growth, cash flow, and capital returns over time. This quality enables broad market support, as evident in the data, and points to rising share prices in calendar year 2026. 

Kinder Morgan Insiders Make Significant Buys in Q4

Kinder Morgan insider activity is significant for several reasons, including the history, the identity of the buyer, and the amount purchased. Kinder Morgan insiders have considerable skin in the game, owning approximately 12% of the stock, and are known to be active buyers. 

However, the activity over the past three years has included sporadic purchases offset by a greater proportion of sales, primarily by lower-level executives. The insider buying in Q4, which is a long-term high in activity, includes a director and the founding chairman, Richard D. Kinder, who topped $26 million, with Mr. Kinder adding another 1 million shares to the 245.2 million he already controlled.

KMI insider activity coincided with the October earnings release, about a week later. In it, the company affirmed its robust outlook and a growing project pipeline that topped $9.3 billion. It includes numerous LNG projects that expand its footprint, improve its network, increase its storage and liquefaction capacity, and enhance its ability to support export markets.

That’s why institutional activity is also solid, with them owning more than 60% of the stock and buying on balance in every quarter this year. 

Analysts' trends reveal strong support from that vector. The consensus of 17 analysts in mid-December is a Moderate Buy with an 18% upside potential. The trends include steady support, steady sentiment, and a leading trend in price targets, indicating a high-end range. That adds 20% to the consensus and will likely increase in 2026 as new projects near completion, and others are added to the backlog. 

NextDecade Is a Bargain in December, Set Up to Rebound in 2026

NextDecade is a minor LNG player with a focus on liquefaction. As such, it is positioned to grow robustly in the upcoming years and may become a takeover target. It is expected to begin generating revenue and become profitable by late 2027 when its primary project goes online.

Until then, major insider Hanwha Group is buying this stock and providing robust market support. Hanwha Group, based in South Korea, is investing in NextDecade to secure its energy supply chain, citing LNG as critical to its mission. Hanwha Group owns about 40.1 million shares, or just over 15.1%. Regarding actual insiders, they have also bought shares in 2025.

Institutional support is also present for NextDecade stock; however, a headwind emerged in December. While institutions own a solid 60% of the stock, they sold on balance in Q3 and Q4, with activity ramping in Q4.

This is central to the stock's late-year price decline, presenting an opportunity for investors as the year comes to a close. Trading near $5, the market is near long-term lows, situated within a support zone that has historically produced robust rebounds. 

Analysts' sentiment aligns with the potential for a robust rebound. The six with current estimates rate the stock as a consensus Hold with a 65% upside. A move to the consensus would mark a significant shift in market dynamics, taking it above the cluster of moving averages, but it may not occur quickly.

As it stands, the price action is poised to retest the low-end of its support zone and may do so in early 2026. The catalyst for share price gains could be the commencement of operations, expected in 2026, and the subsequent generation of revenues. 

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The article "Insiders Buy Natural Gas Stocks: 2 for the Watchlist" first appeared on MarketBeat.