Freestone Capital Holdings LLC Purchases 81,693 Shares of Kimbell Royalty $KRP

Key Points

• Freestone Capital boosted its stake in Kimbell Royalty by 81.7%, buying 81,693 shares to hold 181,693 shares (about 0.17% of the company) worth roughly $2.14 million.
• Kimbell beat quarterly estimates with $0.21 EPS (vs. $0.14) and revenue up 23.7% YoY, and raised its quarterly dividend to $0.37 (a 10.4% yield) despite a very high payout ratio (~238.7%).
• The board authorized a $100 million share buyback (up to ~6.4% of shares); analysts hold a consensus Hold rating with a $17.33 target, and institutional investors own about 25.8% of the stock.

Freestone Capital Holdings LLC increased its stake in Kimbell Royalty (NYSE:KRP - Free Report) by 81.7% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 181,693 shares of the energy company's stock after acquiring an additional 81,693 shares during the period. Freestone Capital Holdings LLC owned approximately 0.17% of Kimbell Royalty worth $2,137,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in KRP. Royal Bank of Canada boosted its position in shares of Kimbell Royalty by 32.6% during the first quarter. Royal Bank of Canada now owns 371,582 shares of the energy company's stock valued at $5,202,000 after buying an additional 91,263 shares during the period. Jane Street Group LLC bought a new position in Kimbell Royalty in the first quarter worth approximately $297,000. Legal & General Group Plc raised its stake in Kimbell Royalty by 17.2% in the second quarter. Legal & General Group Plc now owns 67,890 shares of the energy company's stock worth $948,000 after buying an additional 9,987 shares in the last quarter. First Trust Advisors LP raised its stake in Kimbell Royalty by 8.6% in the second quarter. First Trust Advisors LP now owns 464,829 shares of the energy company's stock worth $6,489,000 after buying an additional 36,803 shares in the last quarter. Finally, Jump Financial LLC acquired a new position in shares of Kimbell Royalty during the second quarter worth $1,220,000. Hedge funds and other institutional investors own 25.78% of the company's stock.

Analysts Set New Price Targets

KRP has been the topic of a number of recent analyst reports. Wall Street Zen downgraded Kimbell Royalty from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Weiss Ratings raised Kimbell Royalty from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, February 2nd. Mizuho cut their target price on Kimbell Royalty from $17.00 to $16.00 and set a "neutral" rating on the stock in a research report on Friday, February 27th. KeyCorp raised shares of Kimbell Royalty from a "sector weight" rating to an "overweight" rating and set a $17.00 price target on the stock in a report on Thursday, April 2nd. Finally, Zacks Research lowered shares of Kimbell Royalty from a "strong-buy" rating to a "hold" rating in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $17.33.

Kimbell Royalty Stock Down 2.1%

KRP opened at $14.20 on Wednesday. Kimbell Royalty has a twelve month low of $11.31 and a twelve month high of $15.12. The company has a quick ratio of 8.64, a current ratio of 8.64 and a debt-to-equity ratio of 0.72. The company has a 50-day moving average price of $14.38 and a 200 day moving average price of $13.31. The company has a market cap of $1.53 billion, a PE ratio of 22.90, a price-to-earnings-growth ratio of 2.68 and a beta of 0.29.

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

Kimbell Royalty Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 18th were issued a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a yield of 10.4%. The ex-dividend date was Wednesday, March 18th. This is a positive change from Kimbell Royalty's previous quarterly dividend of $0.35. Kimbell Royalty's payout ratio is currently 238.71%.

Kimbell Royalty announced that its Board of Directors has initiated a share buyback program on Monday, March 9th that permits the company to buyback $100.00 million in shares. This buyback authorization permits the energy company to reacquire up to 6.4% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other Kimbell Royalty news, insider Blayne Rhynsburger sold 6,609 shares of the stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $14.48, for a total value of $95,698.32. Following the completion of the sale, the insider owned 75,163 shares in the company, valued at approximately $1,088,360.24. This represents a 8.08% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 5.60% 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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