Kimbell Royalty (NYSE:KRP) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Kimbell Royalty from “hold” to “strong-buy.” MarketBeat reports a consensus “Moderate Buy” rating and an average price target of $18.25.
• Kimbell Royalty reported quarterly EPS of $0.40, exceeding the $0.23 consensus estimate, while revenue rose 29.9% year over year to $112.48 million.
• KRP opened at $14.44, versus a 52-week range of $11.31 to $15.80. Institutional investors own 25.78% of the company, with Van ECK Associates increasing its position by 329.4% in the second quarter.

Kimbell Royalty (NYSE:KRP - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Wednesday, Zacks reports.

Other analysts have also recently issued reports about the company. Wall Street Zen raised Kimbell Royalty from a "hold" rating to a "buy" rating in a research report on Saturday, August 15th. Weiss Ratings raised Kimbell Royalty from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, August 25th. Finally, KeyCorp upped their price objective on Kimbell Royalty from $17.00 to $18.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 15th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, Kimbell Royalty has a consensus rating of "Moderate Buy" and a consensus target price of $18.25.

Kimbell Royalty Price Performance

NYSE:KRP opened at $14.44 on Wednesday. The stock has a fifty day moving average of $14.84 and a 200 day moving average of $14.83. The firm has a market capitalization of $1.66 billion, a price-to-earnings ratio of 17.19 and a beta of 0.44. The company has a debt-to-equity ratio of 0.71, a quick ratio of 7.30 and a current ratio of 7.30. Kimbell Royalty has a 52-week low of $11.31 and a 52-week high of $15.80.

Kimbell Royalty (NYSE:KRP - Get Free Report) last posted its quarterly earnings data on Friday, August 7th. The energy company reported $0.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.23 by $0.17. Kimbell Royalty had a return on equity of 14.95% and a net margin of 27.17%.The firm had revenue of $112.48 million during the quarter, compared to analysts' expectations of $93.45 million. During the same period in the prior year, the business earned $0.02 EPS. The company's revenue for the quarter was up 29.9% compared to the same quarter last year. On average, research analysts expect that Kimbell Royalty will post 1.1 EPS for the current fiscal year.

Insider Transactions at Kimbell Royalty

In other news, insider Blayne Rhynsburger sold 4,524 shares of the firm's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $15.08, for a total value of $68,221.92. Following the sale, the insider directly owned 70,639 shares in the company, valued at approximately $1,065,236.12. This trade represents a 6.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.60% of the stock is owned by company insiders.

Institutional Trading of Kimbell Royalty

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KRP. Van ECK Associates Corp boosted its position in Kimbell Royalty by 329.4% in 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 increased 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 purchasing an additional 144,644 shares in the last quarter. Pin Oak Investment Advisors Inc. purchased a new stake in Kimbell Royalty during the 2nd quarter worth approximately $8,432,000. Arrowstreet Capital Limited Partnership acquired a new position in Kimbell Royalty in the 1st quarter valued at $7,405,000. Finally, Oxbow Advisors LLC acquired a new stake in shares of Kimbell Royalty in the second quarter valued at about $5,928,000. Institutional investors and hedge funds own 25.78% of the company's stock.

About Kimbell Royalty

Kimbell Royalty Partners, LP NYSE: KRP is a 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.

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