UBS Group AG Raises Stake in Kimbell Royalty $KRP

Key Points

• UBS Group AG increased its stake in Kimbell Royalty by 9.4% in the fourth quarter, bringing its holding to 1,009,057 shares valued at about $11.9 million.
• Kimbell Royalty reported weaker-than-expected quarterly results, posting $0.04 EPS versus the $0.23 consensus and revenue of $65.54 million, below estimates and down 6.7% year over year.
• The company boosted its dividend and maintained a buyback plan, raising the quarterly payout to $0.41 per share and authorizing up to $100 million in share repurchases, while analysts currently rate the stock a cautious Hold.

UBS Group AG raised its position in shares of Kimbell Royalty (NYSE:KRP - Free Report) by 9.4% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,009,057 shares of the energy company's stock after purchasing an additional 86,957 shares during the quarter. UBS Group AG owned 0.94% of Kimbell Royalty worth $11,867,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. American Century Companies Inc. raised its position in shares of Kimbell Royalty by 9.2% during the third quarter. American Century Companies Inc. now owns 3,026,429 shares of the energy company's stock valued at $40,827,000 after buying an additional 255,688 shares during the last quarter. Energy Income Partners LLC raised its position in shares of Kimbell Royalty by 12.3% during the third quarter. Energy Income Partners LLC now owns 647,396 shares of the energy company's stock valued at $8,733,000 after buying an additional 70,783 shares during the last quarter. Pin Oak Investment Advisors Inc. raised its position in shares of Kimbell Royalty by 0.9% during the third quarter. Pin Oak Investment Advisors Inc. now owns 618,128 shares of the energy company's stock valued at $8,339,000 after buying an additional 5,213 shares during the last quarter. Vanguard Group Inc. raised its position in shares of Kimbell Royalty by 4.3% during the third quarter. Vanguard Group Inc. now owns 596,903 shares of the energy company's stock valued at $8,052,000 after buying an additional 24,419 shares during the last quarter. Finally, First Trust Advisors LP raised its position in shares of Kimbell Royalty by 8.6% during the second quarter. First Trust Advisors LP now owns 464,829 shares of the energy company's stock valued at $6,489,000 after buying an additional 36,803 shares during the last quarter. Institutional investors own 25.78% of the company's stock.

Kimbell Royalty Trading Up 1.0%

Shares of KRP opened at $15.45 on Friday. The company's fifty day moving average is $14.65 and its 200 day moving average is $13.53. Kimbell Royalty has a fifty-two week low of $11.31 and a fifty-two week high of $15.65. The stock has a market capitalization of $1.67 billion, a PE ratio of 33.60, a P/E/G ratio of 2.52 and a beta of 0.29. The company has a debt-to-equity ratio of 0.77, a quick ratio of 8.64 and a current ratio of 5.12.

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

Kimbell Royalty declared that its board has authorized a share buyback plan on Monday, March 9th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the energy company to buy up to 6.4% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

Kimbell Royalty Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Tuesday, May 19th will be given a $0.41 dividend. This is a boost from Kimbell Royalty's previous quarterly dividend of $0.37. This represents a $1.64 annualized dividend and a yield of 10.6%. The ex-dividend date is Tuesday, May 19th. Kimbell Royalty's dividend payout ratio (DPR) is presently 321.74%.

Insiders Place Their Bets

In related news, insider Blayne Rhynsburger sold 6,609 shares of the business's stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $14.48, for a total value of $95,698.32. Following the sale, the insider owned 75,163 shares in the company, valued at approximately $1,088,360.24. The trade was a 8.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 5.60% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on KRP. Weiss Ratings cut shares of Kimbell Royalty from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday. Wall Street Zen cut shares of Kimbell Royalty from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Mizuho reduced their price objective on shares of 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 upgraded shares of Kimbell Royalty from a "sector weight" rating to an "overweight" rating and set a $17.00 price objective on the stock in a research report on Thursday, April 2nd. Finally, Citigroup lifted their price objective on shares of Kimbell Royalty from $17.00 to $19.00 and gave the company a "buy" rating in a research report on Tuesday, March 31st. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $17.33.

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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