Kimbell Royalty (NYSE:KRP) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Kimbell Royalty has an average analyst rating of “Moderate Buy” from six brokerages, with three hold ratings and three buy ratings; the consensus 12-month price target is $18.00.
• The company reported Q1 results that missed estimates, posting EPS of $0.04 versus the expected $0.23 and revenue of $65.54 million versus $90.25 million.
• Kimbell Royalty also raised its quarterly dividend to $0.41 per share and launched a $100 million share repurchase program, signaling management confidence in the stock.

Kimbell Royalty (NYSE:KRP - Get Free Report) has earned an average recommendation of "Moderate Buy" from the six research firms that are covering the company, MarketBeat.com reports. Three research analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $18.00.

Several equities research analysts recently weighed in on KRP shares. Wall Street Zen cut Kimbell Royalty from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Weiss Ratings cut Kimbell Royalty from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, May 14th. Royal Bank Of Canada started coverage on Kimbell Royalty in a research note on Friday. They issued an "outperform" rating and a $20.00 price target on the stock. 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 note on Thursday, April 2nd. Finally, Mizuho reduced their price target on Kimbell Royalty from $17.00 to $16.00 and set a "neutral" rating on the stock in a research note on Friday, February 27th.

Kimbell Royalty Stock Up 2.9%

Shares of NYSE KRP opened at $15.03 on Friday. Kimbell Royalty has a 52 week low of $11.31 and a 52 week high of $15.65. The business has a 50-day simple moving average of $14.76 and a two-hundred day simple moving average of $13.66. The company has a quick ratio of 5.12, a current ratio of 5.12 and a debt-to-equity ratio of 0.77. The company has a market cap of $1.62 billion, a P/E ratio of 32.67 and a beta of 0.29.

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

Kimbell Royalty declared that its Board of Directors has initiated a share repurchase plan on Monday, March 9th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the energy company to purchase up to 6.4% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board of directors believes its stock is undervalued.

Kimbell Royalty Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Tuesday, May 19th were issued a dividend of $0.41 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This is an increase from Kimbell Royalty's previous quarterly dividend of $0.37. This represents a $1.64 dividend on an annualized basis and a dividend yield of 10.9%. Kimbell Royalty's dividend payout ratio is currently 356.52%.

Insiders Place Their Bets

In other news, insider Blayne Rhynsburger sold 6,609 shares of the firm's stock in a transaction dated 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 owned 75,163 shares of the company's stock, valued at $1,088,360.24. This trade represents a 8.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 5.60% of the company's stock.

Institutional Trading of Kimbell Royalty

Institutional investors have recently made changes to their positions in the business. Ascentis Independent Advisors purchased a new position in Kimbell Royalty during the 1st quarter valued at approximately $60,000. State of Wyoming purchased a new position in Kimbell Royalty during the 3rd quarter valued at approximately $62,000. EverSource Wealth Advisors LLC grew its holdings in Kimbell Royalty by 29.8% during the 4th quarter. EverSource Wealth Advisors LLC now owns 5,450 shares of the energy company's stock valued at $64,000 after buying an additional 1,250 shares in the last quarter. HB Wealth Management LLC purchased a new position in shares of Kimbell Royalty in the 1st quarter worth approximately $145,000. Finally, Marex Group plc purchased a new position in shares of Kimbell Royalty in the 4th quarter worth approximately $118,000. Hedge funds and other institutional investors 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.

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