Kimbell Royalty (NYSE:KRP) Hits New 12-Month High - Time to Buy?

Key Points

• Kimbell Royalty shares hit a new 52-week high of $15.67, reflecting recent bullish momentum as the stock traded above its previous close of $15.31.
• Analyst sentiment is mixed but still constructive: the stock has a Moderate Buy rating overall with an average price target of $18, while several firms recently raised targets or initiated bullish coverage.
• The company posted a disappointing quarterly earnings report, missing both EPS and revenue estimates, even as it boosted its quarterly dividend to $0.41 per share and authorized a $100 million share buyback.

Kimbell Royalty (NYSE:KRP - Get Free Report) shares hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $15.67 and last traded at $15.6950, with a volume of 190800 shares changing hands. The stock had previously closed at $15.31.

Analyst Upgrades and Downgrades

KRP has been the topic of a number of research analyst reports. Wall Street Zen downgraded Kimbell Royalty from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Citigroup upped their price target on Kimbell Royalty from $17.00 to $19.00 and gave the company a "buy" rating in a research report on Tuesday, March 31st. Royal Bank Of Canada began coverage on Kimbell Royalty in a research report on Friday, May 29th. They set an "outperform" rating and a $20.00 price target on the stock. Mizuho dropped their price target on Kimbell Royalty from $17.00 to $16.00 and set a "neutral" rating on the stock in a research report on Friday, February 27th. Finally, KeyCorp raised Kimbell Royalty from a "sector weight" rating to an "overweight" rating and set a $17.00 price target on the stock in a research report on Thursday, April 2nd. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $18.00.

Kimbell Royalty Price Performance

The company has a debt-to-equity ratio of 0.77, a current ratio of 5.12 and a quick ratio of 5.12. The company has a 50-day simple moving average of $14.87 and a two-hundred day simple moving average of $13.75. The stock has a market capitalization of $1.69 billion, a price-to-earnings ratio of 34.05 and a beta of 0.29.

Kimbell Royalty (NYSE:KRP - Get Free Report) last issued its quarterly earnings results 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 for the quarter, compared to analyst estimates of $90.25 million. Kimbell Royalty had a net margin of 22.76% and a return on equity of 11.70%. Kimbell Royalty's revenue for the quarter was down 6.7% on a year-over-year basis. During the same period last year, the business posted $0.20 earnings per share. On average, equities research analysts predict that Kimbell Royalty will post 0.97 earnings per share for the current year.

Kimbell Royalty Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Tuesday, May 19th were paid a dividend of $0.41 per share. This is an increase from Kimbell Royalty's previous quarterly dividend of $0.37. This represents a $1.64 annualized dividend and a yield of 10.5%. The ex-dividend date of this dividend was Tuesday, May 19th. Kimbell Royalty's dividend payout ratio (DPR) is 356.52%.

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

Insiders Place Their Bets

In related news, insider Blayne Rhynsburger sold 6,609 shares of Kimbell Royalty stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $14.48, for a total value of $95,698.32. Following the transaction, the insider directly owned 75,163 shares in the company, valued at $1,088,360.24. The trade was a 8.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 5.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kimbell Royalty

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Bridgewealth Advisory Group LLC boosted its position in shares of Kimbell Royalty by 5.7% in the 4th quarter. Bridgewealth Advisory Group LLC now owns 14,934 shares of the energy company's stock valued at $176,000 after purchasing an additional 810 shares during the period. Aptus Capital Advisors LLC boosted its position in shares of Kimbell Royalty by 0.4% in the 4th quarter. Aptus Capital Advisors LLC now owns 193,021 shares of the energy company's stock valued at $2,270,000 after purchasing an additional 840 shares during the period. Centaurus Financial Inc. boosted its position in shares of Kimbell Royalty by 5.0% in the 3rd quarter. Centaurus Financial Inc. now owns 17,999 shares of the energy company's stock valued at $243,000 after purchasing an additional 852 shares during the period. Ruggaard & Associates LLC boosted its position in shares of Kimbell Royalty by 8.1% in the 2nd quarter. Ruggaard & Associates LLC now owns 12,740 shares of the energy company's stock valued at $178,000 after purchasing an additional 950 shares during the period. Finally, Hilltop Holdings Inc. boosted its position in shares of Kimbell Royalty by 4.2% in the 1st quarter. Hilltop Holdings Inc. now owns 25,000 shares of the energy company's stock valued at $362,000 after purchasing an additional 1,000 shares during the period. Institutional investors and hedge funds own 25.78% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.