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

Kimbell Royalty (NYSE:KRP) has received a consensus recommendation of “Moderate Buy” from the six brokerages that are covering the company, MarketBeat reports. Three investment analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $18.00.

KRP has been the topic of several research analyst reports. Royal Bank Of Canada initiated coverage on Kimbell Royalty in a research note on Friday. They set an “outperform” rating and a $20.00 target price on the stock. Mizuho dropped their price target on Kimbell Royalty from $17.00 to $16.00 and set a “neutral” rating on the stock in a research note on Friday, February 27th. Weiss Ratings downgraded Kimbell Royalty from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, May 14th. Wall Street Zen downgraded Kimbell Royalty from a “buy” rating to a “hold” rating in a research note on Saturday, March 7th. Finally, KeyCorp upgraded Kimbell Royalty from a “sector weight” rating to an “overweight” rating and set a $17.00 price target on the stock in a research note on Thursday, April 2nd.

Kimbell Royalty Price Performance

Shares of KRP stock opened at $15.03 on Friday. 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. The firm has a market capitalization of $1.62 billion, a P/E ratio of 32.67 and a beta of 0.29. The stock has a 50 day moving average price of $14.76 and a 200 day moving average price of $13.66.

Kimbell Royalty (NYSE:KRP) last issued its earnings results on Thursday, May 7th. The energy company reported $0.04 earnings per share for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.19). The firm had revenue of $65.54 million for 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 company’s revenue for the quarter was down 6.7% on a year-over-year basis. During the same period last year, the firm earned $0.20 earnings per share. As a group, sell-side analysts predict that Kimbell Royalty will post 1.04 earnings per share for the current year.

Kimbell Royalty Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Tuesday, May 19th were paid a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a yield of 10.9%. The ex-dividend date was Tuesday, May 19th. This is a boost from Kimbell Royalty’s previous quarterly dividend of $0.37. Kimbell Royalty’s dividend payout ratio (DPR) is presently 356.52%.

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

Insiders Place Their Bets

In other news, insider Blayne Rhynsburger sold 6,609 shares of the business’s stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $14.48, for a total value of $95,698.32. Following the completion of the transaction, the insider owned 75,163 shares of the company’s stock, valued at $1,088,360.24. The trade was a 8.08% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 5.60% of the company’s stock.

Hedge Funds Weigh In On Kimbell Royalty

Several institutional investors and hedge funds have recently modified their holdings of KRP. Royal Bank of Canada lifted its holdings in shares of Kimbell Royalty by 32.6% in the 1st quarter. Royal Bank of Canada now owns 371,582 shares of the energy company’s stock valued at $5,202,000 after buying an additional 91,263 shares during the period. Jane Street Group LLC acquired a new position in shares of Kimbell Royalty in the 1st quarter valued at about $297,000. Legal & General Group Plc lifted its holdings in shares of Kimbell Royalty by 17.2% in the 2nd quarter. Legal & General Group Plc now owns 67,890 shares of the energy company’s stock valued at $948,000 after buying an additional 9,987 shares during the period. First Trust Advisors LP lifted its holdings in shares of Kimbell Royalty by 8.6% in the 2nd quarter. First Trust Advisors LP now owns 464,829 shares of the energy company’s stock valued at $6,489,000 after buying an additional 36,803 shares during the period. Finally, Jump Financial LLC acquired a new position in shares of Kimbell Royalty in the 2nd quarter valued at about $1,220,000. Institutional investors and hedge funds own 25.78% of the company’s stock.

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.