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

Kimbell Royalty (NYSE:KRP) has been given an average recommendation of “Moderate Buy” by the six ratings firms that are currently covering the company, MarketBeat reports. Three analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $18.00.

A number of research analysts have commented on KRP shares. Citigroup boosted their target price on shares of Kimbell Royalty from $17.00 to $19.00 and gave the company a “buy” rating in a research report on Tuesday, March 31st. Wall Street Zen cut shares of Kimbell Royalty from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Royal Bank Of Canada started coverage on shares of Kimbell Royalty in a report on Friday, May 29th. They set an “outperform” rating and a $20.00 target price on the stock. KeyCorp raised shares of Kimbell Royalty from a “sector weight” rating to an “overweight” rating and set a $17.00 target price on the stock in a report on Thursday, April 2nd. Finally, Weiss Ratings cut shares of Kimbell Royalty from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, May 14th.

Institutional Investors Weigh In On Kimbell Royalty

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Ascentis Independent Advisors acquired a new stake in Kimbell Royalty in the first quarter valued at approximately $60,000. EverSource Wealth Advisors LLC boosted its position in Kimbell Royalty by 29.8% in the fourth quarter. EverSource Wealth Advisors LLC now owns 5,450 shares of the energy company’s stock valued at $64,000 after buying an additional 1,250 shares in the last quarter. Marex Group plc acquired a new stake in Kimbell Royalty in the fourth quarter valued at approximately $118,000. Sowell Financial Services LLC acquired a new stake in Kimbell Royalty in the fourth quarter valued at approximately $120,000. Finally, Tableaux LLC acquired a new stake in Kimbell Royalty in the fourth quarter valued at approximately $120,000. 25.78% of the stock is owned by institutional investors.

Kimbell Royalty Stock Up 2.1%

Shares of KRP stock opened at $15.01 on Wednesday. Kimbell Royalty has a 52-week low of $11.31 and a 52-week high of $15.80. The stock has a market cap of $1.62 billion, a price-to-earnings ratio of 32.63 and a beta of 0.29. The firm’s 50-day moving average is $14.94 and its 200-day moving average is $13.92. 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 issued its earnings results on Thursday, May 7th. The energy company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.19). Kimbell Royalty had a net margin of 22.76% and a return on equity of 11.70%. The firm had revenue of $65.54 million during the quarter, compared to analyst estimates of $90.25 million. During the same quarter last year, the business posted $0.20 earnings per share. The company’s revenue for the quarter was down 6.7% on a year-over-year basis. Sell-side analysts predict that Kimbell Royalty will post 0.97 EPS for the current year.

Kimbell Royalty Increases Dividend

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

Kimbell Royalty declared that its Board of Directors has initiated a share repurchase plan on Monday, March 9th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the energy company to repurchase up to 6.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

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.