Gabelli Funds LLC Grows Position in Kimbell Royalty $KRP

Key Points

• Gabelli Funds LLC increased its Kimbell Royalty stake by 47.7% in the fourth quarter, buying an additional 77,500 shares and bringing its total holding to 240,000 shares worth about $2.8 million.
• Kimbell Royalty’s latest earnings missed expectations, with quarterly EPS of $0.04 versus the $0.23 estimate and revenue of $65.54 million versus the expected $90.25 million.
• The company raised its quarterly dividend to $0.41 per share and also authorized a $100 million share repurchase program, while analysts currently rate the stock a consensus Hold with an average price target of $17.33.

Gabelli Funds LLC increased its position in shares of Kimbell Royalty (NYSE:KRP - Free Report) by 47.7% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 240,000 shares of the energy company's stock after purchasing an additional 77,500 shares during the period. Gabelli Funds LLC owned approximately 0.22% of Kimbell Royalty worth $2,822,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the company. American Century Companies Inc. boosted its stake in shares of Kimbell Royalty by 9.2% during the 3rd quarter. American Century Companies Inc. now owns 3,026,429 shares of the energy company's stock worth $40,827,000 after purchasing an additional 255,688 shares during the period. UBS Group AG boosted its stake in shares of Kimbell Royalty by 9.4% during the 4th quarter. UBS Group AG now owns 1,009,057 shares of the energy company's stock worth $11,867,000 after purchasing an additional 86,957 shares during the period. Energy Income Partners LLC boosted its stake in shares of Kimbell Royalty by 12.3% during the 3rd quarter. Energy Income Partners LLC now owns 647,396 shares of the energy company's stock worth $8,733,000 after purchasing an additional 70,783 shares during the period. Pin Oak Investment Advisors Inc. boosted its stake in shares of Kimbell Royalty by 0.9% during the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 618,128 shares of the energy company's stock worth $8,339,000 after purchasing an additional 5,213 shares during the period. Finally, Vanguard Group Inc. boosted its stake in shares of Kimbell Royalty by 4.3% during the 3rd quarter. Vanguard Group Inc. now owns 596,903 shares of the energy company's stock worth $8,052,000 after purchasing an additional 24,419 shares during the period. 25.78% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Kimbell Royalty

In other Kimbell Royalty news, insider Blayne Rhynsburger sold 6,609 shares of the business's 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 directly owned 75,163 shares of the company's stock, valued at $1,088,360.24. The trade was a 8.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 5.60% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of research firms recently commented on KRP. Mizuho dropped their price target on shares of Kimbell Royalty from $17.00 to $16.00 and set a "neutral" rating for the company in a research note on Friday, February 27th. Wall Street Zen cut shares of Kimbell Royalty from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Citigroup lifted their price target on shares of Kimbell Royalty from $17.00 to $19.00 and gave the stock a "buy" rating in a research note on Tuesday, March 31st. Zacks Research cut shares of Kimbell Royalty from a "strong-buy" rating to a "hold" rating in a research note on Thursday, January 22nd. Finally, KeyCorp raised shares of Kimbell Royalty from a "sector weight" rating to an "overweight" rating and set a $17.00 price target for the company in a research note on Thursday, April 2nd. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $17.33.

Kimbell Royalty Price Performance

Kimbell Royalty stock opened at $15.26 on Friday. The stock has a market cap of $1.65 billion, a price-to-earnings ratio of 33.16 and a beta of 0.29. The company has a debt-to-equity ratio of 0.77, a current ratio of 5.12 and a quick ratio of 5.12. Kimbell Royalty has a 1 year low of $11.31 and a 1 year high of $15.65. The firm has a 50-day moving average of $14.73 and a two-hundred day moving average of $13.59.

Kimbell Royalty (NYSE:KRP - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The energy company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.19). The company had revenue of $65.54 million during the quarter, compared to analysts' expectations of $90.25 million. Kimbell Royalty had a net margin of 22.76% and a return on equity of 11.70%. Kimbell Royalty's quarterly revenue was down 6.7% on a year-over-year basis. During the same period last year, the firm earned $0.20 earnings per share. On average, research analysts forecast that Kimbell Royalty will post 1.04 earnings per share for the current year.

Kimbell Royalty announced that its Board of Directors has authorized a stock repurchase program on Monday, March 9th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the energy company to buy up to 6.4% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Kimbell Royalty Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Tuesday, May 19th will be given a $0.41 dividend. This is a positive change from Kimbell Royalty's previous quarterly dividend of $0.37. The ex-dividend date of this dividend is Tuesday, May 19th. This represents a $1.64 annualized dividend and a yield of 10.8%. Kimbell Royalty's dividend payout ratio is presently 356.52%.

Kimbell Royalty 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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