Kimbell Royalty (NYSE:KRP) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• Kimbell Royalty (NYSE:KRP) has received an average recommendation of "Reduce" from seven brokerages, with two analysts recommending a sell and four a hold.
• The company's quarterly earnings report showed a missed EPS estimate at $0.02 compared to the expected $0.14, despite revenue increasing by 12.9% year-over-year.
• Kimbell Royalty has recently cut its dividend payout, with a significant dividend yield of 11.8%, although the payout ratio stands at an alarming -3,800.00%.

Shares of Kimbell Royalty (NYSE:KRP - Get Free Report) have been given an average recommendation of "Reduce" by the seven ratings firms that are covering the firm, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and one has assigned a buy recommendation to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $17.20.

Several research firms have recently commented on KRP. Zacks Research downgraded Kimbell Royalty from a "hold" rating to a "strong sell" rating in a report on Monday, September 29th. KeyCorp cut their price target on shares of Kimbell Royalty from $18.00 to $17.00 and set an "overweight" rating for the company in a research note on Wednesday, September 3rd. Weiss Ratings reiterated a "hold (c-)" rating on shares of Kimbell Royalty in a research note on Wednesday, October 8th. Finally, Wall Street Zen downgraded shares of Kimbell Royalty from a "buy" rating to a "hold" rating in a research note on Sunday, September 28th.

Kimbell Royalty Price Performance

NYSE:KRP opened at $12.85 on Friday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 5.45 and a current ratio of 5.45. The stock's 50-day simple moving average is $13.68 and its 200 day simple moving average is $13.54. The company has a market cap of $1.39 billion, a P/E ratio of -321.25 and a beta of 0.45. Kimbell Royalty has a 52-week low of $10.98 and a 52-week high of $16.99.

Kimbell Royalty (NYSE:KRP - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The energy company reported $0.02 EPS for the quarter, missing the consensus estimate of $0.14 by ($0.12). Kimbell Royalty had a net margin of 10.67% and a return on equity of 12.56%. The company had revenue of $86.55 million for the quarter, compared to analyst estimates of $79.77 million. During the same period last year, the company posted $0.11 earnings per share. The business's revenue for the quarter was up 12.9% on a year-over-year basis. As a group, sell-side analysts forecast that Kimbell Royalty will post 0.65 EPS for the current fiscal year.

Kimbell Royalty Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 25th. Stockholders of record on Monday, August 18th were given a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a dividend yield of 11.8%. The ex-dividend date of this dividend was Monday, August 18th. Kimbell Royalty's dividend payout ratio (DPR) is presently -3,800.00%.

Insider Activity

In other Kimbell Royalty news, insider Blayne Rhynsburger sold 3,600 shares of the firm's stock in a transaction on Thursday, September 4th. The stock was sold at an average price of $13.74, for a total transaction of $49,464.00. Following the completion of the sale, the insider owned 43,663 shares of the company's stock, valued at $599,929.62. This trade represents a 7.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 5.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Kimbell Royalty

Several hedge funds have recently added to or reduced their stakes in the business. Bessemer Group Inc. acquired a new stake in shares of Kimbell Royalty during the 1st quarter worth about $29,000. Truist Financial Corp lifted its position in Kimbell Royalty by 233.0% during the second quarter. Truist Financial Corp now owns 78,361 shares of the energy company's stock worth $1,094,000 after acquiring an additional 54,829 shares during the last quarter. Yaupon Capital Management LP acquired a new stake in Kimbell Royalty during the first quarter worth approximately $6,300,000. Epoch Investment Partners Inc. lifted its position in Kimbell Royalty by 222.8% during the first quarter. Epoch Investment Partners Inc. now owns 672,420 shares of the energy company's stock worth $9,414,000 after acquiring an additional 464,142 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. lifted its holdings in Kimbell Royalty by 604.9% during the 1st quarter. Adage Capital Partners GP L.L.C. now owns 1,691,666 shares of the energy company's stock worth $23,683,000 after purchasing an additional 1,451,666 shares during the last quarter. Institutional investors and hedge funds own 25.78% of the company's stock.

About Kimbell Royalty

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