Kimbell Royalty (NYSE:KRP) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Zacks Research downgraded Kimbell Royalty from “hold” to “strong sell,” while the broader analyst consensus remains “hold” with an average price target of $18.00.
• Kimbell Royalty reported weak quarterly results, with EPS of $0.04 versus the $0.23 estimate and revenue of $65.54 million compared with expectations of $90.25 million; revenue declined 6.7% year over year.
• KRP shares opened at $14.60, within a 52-week range of $11.31 to $15.80, and institutional investors own approximately 25.78% of the company.

Kimbell Royalty (NYSE:KRP - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Monday,Zacks.com reports.

Several other equities research analysts have also issued reports on the company. 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 objective for the company. Weiss Ratings cut Kimbell Royalty from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, May 14th. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $18.00.

Kimbell Royalty Stock Performance

Shares of KRP opened at $14.60 on Monday. The company has a debt-to-equity ratio of 0.77, a quick ratio of 5.12 and a current ratio of 5.12. The stock has a market capitalization of $1.57 billion, a price-to-earnings ratio of 31.73 and a beta of 0.30. Kimbell Royalty has a 52-week low of $11.31 and a 52-week high of $15.80. The stock's 50-day simple moving average is $14.89 and its 200 day simple moving average is $14.51.

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 the consensus estimate of $0.23 by ($0.19). Kimbell Royalty had a net margin of 22.76% and a return on equity of 11.70%. The firm had revenue of $65.54 million for the quarter, compared to analysts' expectations of $90.25 million. During the same period in the prior year, the firm posted $0.20 EPS. Kimbell Royalty's revenue was down 6.7% on a year-over-year basis. Research analysts forecast that Kimbell Royalty will post 0.81 EPS for the current fiscal year.

Institutional Trading of Kimbell Royalty

A number of hedge funds have recently made changes to their positions in the stock. GraniteShares Advisors LLC grew its position in Kimbell Royalty by 15.2% in the second quarter. GraniteShares Advisors LLC now owns 220,399 shares of the energy company's stock worth $3,202,000 after acquiring an additional 29,014 shares in the last quarter. SYM FINANCIAL Corp purchased a new stake in Kimbell Royalty during the second quarter valued at about $159,000. Evanson Financial LLC purchased a new stake in Kimbell Royalty during the second quarter valued at about $182,000. Hilltop National Bank bought a new stake in Kimbell Royalty during the second quarter worth about $44,000. Finally, Alpine Woods Capital Investors LLC bought a new stake in Kimbell Royalty during the first quarter worth about $266,000. 25.78% of the stock is owned by institutional investors.

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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