Citigroup Issues Positive Forecast for Kimbell Royalty (NYSE:KRP) Stock Price

Key Points

• Citigroup raised its price target on Kimbell Royalty from $17 to $19 and kept a "buy" rating, implying roughly a 31% upside from the prior close.
• Kimbell beat quarterly estimates with $0.21 EPS versus $0.14 expected and revenue up 23.7% year-over-year, and its board authorized a $100 million share repurchase (up to 6.4% of shares).
• Despite Citigroup's upgrade, the sell-side consensus remains a "Hold" (one Buy and four Holds) with an average price target of $17.33 after several recent downgrades.

Kimbell Royalty (NYSE:KRP - Get Free Report) had its price objective hoisted by analysts at Citigroup from $17.00 to $19.00 in a report released on Tuesday,Benzinga reports. The brokerage presently has a "buy" rating on the energy company's stock. Citigroup's target price points to a potential upside of 31.46% from the company's previous close.

Other research analysts have also recently issued reports about the company. Zacks Research cut Kimbell Royalty from a "strong-buy" rating to a "hold" rating in a research note on Thursday, January 22nd. Wall Street Zen cut Kimbell Royalty from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Mizuho dropped their target price on Kimbell Royalty from $17.00 to $16.00 and set a "neutral" rating for the company in a research report on Friday, February 27th. Finally, Weiss Ratings raised Kimbell Royalty from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 2nd. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Kimbell Royalty currently has a consensus rating of "Hold" and an average price target of $17.33.

Kimbell Royalty Price Performance

KRP traded down $0.39 on Tuesday, hitting $14.45. 839,130 shares of the stock were exchanged, compared to its average volume of 718,500. The company has a debt-to-equity ratio of 0.72, a current ratio of 8.64 and a quick ratio of 8.64. Kimbell Royalty has a 12 month low of $10.98 and a 12 month high of $15.12. The firm has a market capitalization of $1.56 billion, a price-to-earnings ratio of 23.31, a PEG ratio of 3.47 and a beta of 0.30. The business has a 50-day moving average of $14.05 and a two-hundred day moving average of $13.23.

Kimbell Royalty (NYSE:KRP - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The energy company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.07. Kimbell Royalty had a return on equity of 13.73% and a net margin of 26.43%.The business had revenue of $82.45 million for the quarter, compared to analyst estimates of $76.78 million. During the same period last year, the firm posted ($0.48) earnings per share. Kimbell Royalty's revenue was up 23.7% compared to the same quarter last year. Sell-side analysts forecast that Kimbell Royalty will post 0.65 EPS for the current fiscal year.

Kimbell Royalty announced that its board has authorized a stock repurchase plan on Monday, March 9th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the energy company to buy up to 6.4% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Transactions at Kimbell Royalty

In related 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 transaction, the insider directly owned 75,163 shares of the company's stock, valued at $1,088,360.24. This represents a 8.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 5.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Kimbell Royalty

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. State of Wyoming bought a new stake in Kimbell Royalty in the 3rd quarter valued at about $62,000. EverSource Wealth Advisors LLC boosted its holdings 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 worth $64,000 after acquiring 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 bought a new stake in shares of Kimbell Royalty during the fourth quarter valued at approximately $120,000. Finally, Tableaux LLC bought a new stake in shares of Kimbell Royalty during the fourth quarter valued at approximately $120,000. Institutional investors own 25.78% of the company's stock.

Kimbell Royalty Company Profile

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.

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