Hsbc Holdings PLC Raises Stake in Kimbell Royalty $KRP

Key Points

• Hsbc Holdings PLC increased its Kimbell Royalty stake by 441% in the first quarter, ending with 84,476 shares worth approximately $1.24 million. Institutional investors collectively own 25.78% of Kimbell Royalty.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an $18.00 price target; individual targets range from $17 to $20.
• Kimbell Royalty raised its quarterly dividend to $0.41, equivalent to a $1.64 annualized payout and an approximately 11.2% yield. However, the company recently missed quarterly earnings and revenue estimates.

Hsbc Holdings PLC lifted its stake in Kimbell Royalty (NYSE:KRP - Free Report) by 441.0% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 84,476 shares of the energy company's stock after purchasing an additional 68,861 shares during the period. Hsbc Holdings PLC owned about 0.08% of Kimbell Royalty worth $1,236,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in the stock. Van ECK Associates Corp bought a new position in Kimbell Royalty in the 4th quarter worth about $6,604,000. Cubist Systematic Strategies LLC bought a new stake in shares of Kimbell Royalty during the second quarter valued at approximately $5,445,000. Adage Capital Partners GP L.L.C. raised its stake in shares of Kimbell Royalty by 32.1% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 1,210,948 shares of the energy company's stock valued at $14,241,000 after acquiring an additional 294,482 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new stake in shares of Kimbell Royalty in the third quarter valued at approximately $3,472,000. Finally, Marshall Wace LLP purchased a new stake in shares of Kimbell Royalty in the fourth quarter valued at approximately $2,077,000. Hedge funds and other institutional investors own 25.78% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. KeyCorp upgraded Kimbell Royalty from a "sector weight" rating to an "overweight" rating and set a $17.00 price objective on the stock in a report on Thursday, April 2nd. Citigroup upped their target price on Kimbell Royalty from $17.00 to $19.00 and gave the stock a "buy" rating in a report on Tuesday, March 31st. Weiss Ratings downgraded Kimbell Royalty from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, May 14th. Finally, Royal Bank Of Canada assumed coverage on Kimbell Royalty in a research note on Friday, May 29th. They set an "outperform" rating and a $20.00 price target on the stock. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $18.00.

Kimbell Royalty Price Performance

NYSE KRP opened at $14.69 on Tuesday. The company has a market cap of $1.58 billion, a PE ratio of 31.92 and a beta of 0.29. The firm's 50 day moving average price is $14.94 and its 200-day moving average price is $14.40. The company has a debt-to-equity ratio of 0.77, a quick ratio of 5.12 and a current ratio of 5.12. Kimbell Royalty has a 52-week low of $11.31 and a 52-week high of $15.80.

Kimbell Royalty (NYSE:KRP - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The energy company reported $0.04 EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.19). The business had revenue of $65.54 million during the quarter, compared to the consensus estimate of $90.25 million. Kimbell Royalty had a return on equity of 11.70% and a net margin of 22.76%.The business's quarterly revenue was down 6.7% on a year-over-year basis. During the same period last year, the firm earned $0.20 EPS. Sell-side analysts forecast that Kimbell Royalty will post 0.81 EPS for the current fiscal year.

Kimbell Royalty Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Tuesday, May 19th were given a $0.41 dividend. This represents a $1.64 annualized dividend and a dividend yield of 11.2%. The ex-dividend date of this dividend was Tuesday, May 19th. This is a positive change from Kimbell Royalty's previous quarterly dividend of $0.37. Kimbell Royalty's dividend payout ratio is presently 356.52%.

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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