Kimbell Royalty (NYSE:KRP) Reaches New 12-Month High – Should You Buy?

Kimbell Royalty (NYSE:KRP)’s share price hit a new 52-week high during mid-day trading on Wednesday. The company traded as high as $15.81 and last traded at $15.6930, with a volume of 35,405 shares traded. The stock had previously closed at $15.75.

Analysts Set New Price Targets

A number of research firms have commented on KRP. Weiss Ratings raised Kimbell Royalty from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday. KeyCorp increased their target price on Kimbell Royalty from $17.00 to $18.00 and gave the stock an “overweight” rating in a report on Tuesday, September 15th. Wall Street Zen upgraded Kimbell Royalty from a “hold” rating to a “buy” rating in a research note on Saturday, August 15th. Finally, Zacks Research upgraded Kimbell Royalty from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, September 30th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Kimbell Royalty currently has an average rating of “Buy” and an average price target of $18.25.

Kimbell Royalty Trading Down 0.2%

The company has a current ratio of 7.30, a quick ratio of 7.30 and a debt-to-equity ratio of 0.71. The firm has a market capitalization of $1.80 billion, a P/E ratio of 18.71 and a beta of 0.44. The business has a 50 day moving average of $14.90 and a 200-day moving average of $14.86.

Kimbell Royalty (NYSE:KRP) last announced its quarterly earnings data on Friday, August 7th. The energy company reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.17. Kimbell Royalty had a net margin of 27.17% and a return on equity of 14.95%. The business had revenue of $112.48 million for the quarter, compared to analyst estimates of $93.45 million. During the same quarter in the previous year, the firm posted $0.02 earnings per share. The firm’s revenue for the quarter was up 29.9% on a year-over-year basis. Analysts anticipate that Kimbell Royalty will post 1.10 EPS for the current fiscal year.

Kimbell Royalty Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 24th. Shareholders of record on Monday, August 17th were issued a $0.47 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $1.88 annualized dividend and a yield of 12.0%. This is an increase from Kimbell Royalty’s previous quarterly dividend of $0.41. Kimbell Royalty’s payout ratio is currently 223.81%.

Insiders Place Their Bets

In other news, insider Blayne Rhynsburger sold 4,524 shares of Kimbell Royalty stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $15.08, for a total transaction of $68,221.92. Following the completion of the sale, the insider owned 70,639 shares of the company’s stock, valued at approximately $1,065,236.12. This trade represents a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 5.60% of the company’s stock.

Hedge Funds Weigh In On Kimbell Royalty

Several hedge funds have recently bought and sold shares of the company. Van ECK Associates Corp increased its position in Kimbell Royalty by 329.4% during the 2nd quarter. Van ECK Associates Corp now owns 3,627,850 shares of the energy company’s stock worth $52,713,000 after purchasing an additional 2,783,040 shares in the last quarter. Royal Bank of Canada grew its stake in shares of Kimbell Royalty by 32.0% during the first quarter. Royal Bank of Canada now owns 596,687 shares of the energy company’s stock worth $8,634,000 after buying an additional 144,644 shares during the last quarter. Pin Oak Investment Advisors Inc. bought a new stake in shares of Kimbell Royalty during the second quarter worth $8,432,000. Arrowstreet Capital Limited Partnership bought a new stake in shares of Kimbell Royalty during the first quarter worth $7,405,000. Finally, Oxbow Advisors LLC bought a new stake in shares of Kimbell Royalty during the second quarter worth $5,928,000. 25.78% of the stock is owned by institutional investors.

Kimbell Royalty Company Profile

Kimbell Royalty Partners, LP (NYSE:KRP) is a publicly traded oil and gas mineral and royalty company headquartered in Fort Worth, Texas. The partnership owns and acquires mineral, royalty, overriding royalty and other non-cost-bearing interests in oil and natural gas properties across the United States.

Kimbell’s interests are located primarily in major onshore producing regions, including the Permian, Eagle Ford, Bakken, Haynesville, Mid-Continent and Rocky Mountain basins. Because royalty interests generally do not require the owner to fund drilling, completion or operating expenses, the company’s business model is focused on receiving a share of production revenues from wells operated by exploration and production companies.

The company was formed in 2015 and completed its initial public offering in 2017.