Kimbell Royalty (NYSE:KRP) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of Kimbell Royalty (NYSE:KRP) have been given a consensus rating of “Moderate Buy” by the six brokerages that are presently covering the company, Marketbeat reports. Three investment analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $18.00.

KRP has been the subject of several recent analyst reports. Wall Street Zen cut shares of Kimbell Royalty from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. Citigroup increased their price objective on shares of Kimbell Royalty from $17.00 to $19.00 and gave the stock a “buy” rating in a research report on Tuesday, March 31st. Mizuho decreased their price objective on shares of Kimbell Royalty from $17.00 to $16.00 and set a “neutral” rating for the company in a research report on Friday, February 27th. Royal Bank Of Canada initiated coverage on shares of Kimbell Royalty in a research report on Friday, May 29th. They set an “outperform” rating and a $20.00 price objective for the company. Finally, Weiss Ratings cut shares of Kimbell Royalty from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, May 14th.

Insider Buying and Selling at Kimbell Royalty

In other news, insider Blayne Rhynsburger sold 6,609 shares of the stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $14.48, for a total transaction of $95,698.32. Following the completion of the sale, the insider directly owned 75,163 shares in the company, valued at $1,088,360.24. This represents a 8.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 5.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Kimbell Royalty

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. American Century Companies Inc. increased its stake in Kimbell Royalty by 9.2% in the third quarter. American Century Companies Inc. now owns 3,026,429 shares of the energy company’s stock valued at $40,827,000 after purchasing an additional 255,688 shares in the last quarter. Adage Capital Partners GP L.L.C. increased its stake in Kimbell Royalty by 32.1% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 1,210,948 shares of the energy company’s stock valued at $14,241,000 after purchasing an additional 294,482 shares in the last quarter. UBS Group AG increased its stake in Kimbell Royalty by 9.4% in the fourth quarter. UBS Group AG now owns 1,009,057 shares of the energy company’s stock valued at $11,867,000 after purchasing an additional 86,957 shares in the last quarter. Energy Income Partners LLC increased its stake in Kimbell Royalty by 12.3% in the third quarter. Energy Income Partners LLC now owns 647,396 shares of the energy company’s stock valued at $8,733,000 after purchasing an additional 70,783 shares in the last quarter. Finally, Pin Oak Investment Advisors Inc. increased its stake in Kimbell Royalty by 0.9% in the third quarter. Pin Oak Investment Advisors Inc. now owns 618,128 shares of the energy company’s stock valued at $8,339,000 after purchasing an additional 5,213 shares in the last quarter. 25.78% of the stock is owned by institutional investors.

Kimbell Royalty Price Performance

KRP stock opened at $15.28 on Friday. The company has a fifty day moving average price of $14.84 and a 200-day moving average price of $13.71. The company has a market capitalization of $1.65 billion, a P/E ratio of 33.21 and a beta of 0.29. Kimbell Royalty has a 52-week low of $11.31 and a 52-week high of $15.65. The company has a debt-to-equity ratio of 0.77, a quick ratio of 5.12 and a current ratio of 5.12.

Kimbell Royalty (NYSE:KRP) last announced its earnings results on Thursday, May 7th. The energy company reported $0.04 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.19). The company had revenue of $65.54 million during the quarter, compared to the consensus estimate of $90.25 million. Kimbell Royalty had a net margin of 22.76% and a return on equity of 11.70%. The business’s revenue was down 6.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.20 earnings per share. As a group, equities analysts expect that Kimbell Royalty will post 1.04 EPS for the current year.

Kimbell Royalty announced that its board has authorized a stock buyback program on Monday, March 9th that permits the company to buyback $100.00 million in shares. This buyback authorization permits the energy company to repurchase up to 6.4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its stock is undervalued.

Kimbell Royalty Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Tuesday, May 19th were given a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a dividend yield of 10.7%. This is a boost from Kimbell Royalty’s previous quarterly dividend of $0.37. The ex-dividend date was Tuesday, May 19th. Kimbell Royalty’s dividend payout ratio is currently 356.52%.

About Kimbell Royalty

Kimbell Royalty Partners LP (NYSE: KRP) is a mineral and royalty company focused on acquiring and managing oil and natural gas royalty interests in the United States. As a master limited partnership, Kimbell Royalty generates fee-like revenues by collecting royalties and overriding royalty interests on production volumes, without directly bearing the capital or operating costs of drilling and completion activities. The partnership’s business model emphasizes steady cash flows and limited downside exposure to commodity price fluctuations.

The company’s asset portfolio spans multiple onshore basins, with a core concentration in Texas and New Mexico.