Kimbell Royalty (NYSE:KRP) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is moderately bullish: Six brokerages rate Kimbell Royalty a consensus “Moderate Buy,” split between three buy and three hold ratings. The average 12-month price target is $18.25 versus the reported share price of $14.44.
• Quarterly results exceeded expectations: Kimbell reported earnings of $0.40 per share, above the $0.23 consensus estimate, while revenue reached $112.48 million and grew 29.9% year over year.
• The dividend increased to $0.47 per share quarterly: The new annualized payout is $1.88, representing a reported 13.0% yield, although the 223.81% payout ratio indicates the dividend exceeds earnings per share.

Kimbell Royalty (NYSE:KRP - Get Free Report) has received an average rating of "Moderate Buy" from the six brokerages that are presently covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $18.25.

KRP has been the subject of several recent analyst reports. Wall Street Zen raised Kimbell Royalty from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Weiss Ratings raised shares of Kimbell Royalty from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, August 25th. KeyCorp increased their price target on shares of Kimbell Royalty from $17.00 to $18.00 and gave the company an "overweight" rating in a research note on Tuesday, September 15th. Finally, Zacks Research raised shares of Kimbell Royalty from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 1st.

Kimbell Royalty Stock Performance

KRP opened at $14.44 on Friday. Kimbell Royalty has a 52-week low of $11.31 and a 52-week high of $15.80. The firm has a market capitalization of $1.66 billion, a PE 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. The business's 50-day simple moving average is $14.84 and its 200 day simple moving average is $14.83.

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

Kimbell Royalty Increases Dividend

The firm 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. The ex-dividend date was Monday, August 17th. This is an increase from Kimbell Royalty's previous quarterly dividend of $0.41. This represents a $1.88 dividend on an annualized basis and a yield of 13.0%. Kimbell Royalty's dividend payout ratio is 223.81%.

Insiders Place Their Bets

In other Kimbell Royalty news, insider Blayne Rhynsburger sold 4,524 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $15.08, for a total value of $68,221.92. Following the sale, the insider owned 70,639 shares in the company, valued at $1,065,236.12. This represents a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 5.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Envestnet Asset Management Inc. increased its holdings in shares of Kimbell Royalty by 12.2% in the second quarter. Envestnet Asset Management Inc. now owns 41,479 shares of the energy company's stock valued at $603,000 after purchasing an additional 4,518 shares during the last quarter. State Street Corp lifted its stake in shares of Kimbell Royalty by 58.6% during the 2nd quarter. State Street Corp now owns 146,932 shares of the energy company's stock worth $2,135,000 after buying an additional 54,288 shares during the last quarter. Tidal Investments LLC lifted its stake in shares of Kimbell Royalty by 11.2% during the 2nd quarter. Tidal Investments LLC now owns 64,413 shares of the energy company's stock worth $936,000 after buying an additional 6,479 shares during the last quarter. WINTON GROUP Ltd boosted its holdings in shares of Kimbell Royalty by 50.0% during the 2nd quarter. WINTON GROUP Ltd now owns 38,088 shares of the energy company's stock worth $553,000 after buying an additional 12,688 shares during the period. Finally, Engineers Gate Manager LP grew its stake in Kimbell Royalty by 7.4% in the 2nd quarter. Engineers Gate Manager LP now owns 150,788 shares of the energy company's stock valued at $2,191,000 after buying an additional 10,385 shares during the last quarter. 25.78% of the stock is currently owned by institutional investors.

Kimbell Royalty Company Profile

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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