Kimbell Royalty (NYSE:KRP) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately positive: Six brokerages rate Kimbell Royalty a “Moderate Buy,” split evenly between buy and hold ratings, with an average 12-month price target of $18 versus the recent $14.86 share price.
• Quarterly results exceeded expectations: Kimbell reported $0.40 in earnings per share and $112.48 million in revenue, beating estimates of $0.23 and $93.45 million, respectively; revenue rose 29.9% year over year.
• The dividend was increased to $0.47 per quarter: This equates to an annualized $1.88 payout and a 12.7% yield, although the payout ratio is high at 223.81%.

Shares of Kimbell Royalty (NYSE:KRP - Get Free Report) have been given an average rating of "Moderate Buy" by the six ratings firms that are covering the company, MarketBeat.com reports. Three research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $18.00.

A number of analysts have recently weighed in on KRP shares. Wall Street Zen upgraded shares of Kimbell Royalty from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Royal Bank Of Canada started coverage on Kimbell Royalty in a research report on Friday, May 29th. They issued an "outperform" rating and a $20.00 price target for the company. Weiss Ratings raised Kimbell Royalty from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, August 25th. Finally, Zacks Research upgraded Kimbell Royalty from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 1st.

Kimbell Royalty Stock Down 0.1%

Shares of KRP opened at $14.86 on Monday. The company has a debt-to-equity ratio of 0.71, a current ratio of 7.30 and a quick ratio of 7.30. The stock has a market capitalization of $1.70 billion, a price-to-earnings ratio of 17.69 and a beta of 0.31. Kimbell Royalty has a 1 year low of $11.31 and a 1 year high of $15.80. The business's 50 day simple moving average is $14.88 and its 200-day simple moving average is $14.79.

Kimbell Royalty (NYSE:KRP - Get Free Report) last announced its quarterly earnings results on Friday, August 7th. The energy company reported $0.40 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.17. The company had revenue of $112.48 million for the quarter, compared to analysts' expectations of $93.45 million. Kimbell Royalty had a net margin of 27.17% and a return on equity of 14.95%. Kimbell Royalty's quarterly revenue was up 29.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.02 earnings per share. As a group, equities analysts expect that Kimbell Royalty will post 0.81 earnings per share for the current fiscal year.

Kimbell Royalty Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 24th. Investors of record on Monday, August 17th were issued a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a yield of 12.7%. The ex-dividend date was Monday, August 17th. This is a boost from Kimbell Royalty's previous quarterly dividend of $0.41. Kimbell Royalty's payout ratio is currently 223.81%.

Insider Transactions at Kimbell Royalty

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

Hedge Funds Weigh In On Kimbell Royalty

A number of large investors have recently bought and sold shares of KRP. UBS Group AG increased its stake in shares of Kimbell Royalty by 9.4% during the fourth quarter. UBS Group AG now owns 1,009,057 shares of the energy company's stock valued at $11,867,000 after buying an additional 86,957 shares during the period. Gabelli Funds LLC increased its position in Kimbell Royalty by 47.7% during the 4th quarter. Gabelli Funds LLC now owns 240,000 shares of the energy company's stock valued at $2,822,000 after buying an additional 77,500 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new position in shares of Kimbell Royalty in the 1st quarter valued at approximately $7,405,000. Pingora Partners LLC lifted its stake in shares of Kimbell Royalty by 267.0% during the fourth quarter. Pingora Partners LLC now owns 98,076 shares of the energy company's stock worth $1,153,000 after buying an additional 71,350 shares during the period. Finally, Hsbc Holdings PLC lifted its position in Kimbell Royalty by 441.0% during the 1st quarter. Hsbc Holdings PLC now owns 84,476 shares of the energy company's stock worth $1,236,000 after acquiring an additional 68,861 shares during the period. Hedge funds and other institutional investors 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.

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