Kimbell Royalty (NYSE:KRP) Sees Strong Trading Volume - Time to Buy?

Key Points

• Kimbell Royalty saw unusually-strong trading volume Monday—about 1,626,249 shares traded (up 123% from the prior session) and the stock last traded near $14.74, indicating heightened market interest.
• The company reported a quarterly earnings and revenue beat (EPS $0.21 vs $0.14 expected; revenue $82.45M, up 23.7% year-over-year) and analysts forecast roughly $0.93 EPS for the year.
• Management boosted the quarterly dividend to $0.37 (annualized $1.48, a 10.0% yield) and authorized a $100 million share buyback (up to 6.4% of shares), though the payout ratio is a high 238.71%.

Kimbell Royalty (NYSE:KRP - Get Free Report) saw unusually-strong trading volume on Monday . Approximately 1,626,249 shares changed hands during mid-day trading, an increase of 123% from the previous session's volume of 728,480 shares.The stock last traded at $14.74 and had previously closed at $14.70.

Analyst Upgrades and Downgrades

A number of research firms recently commented on KRP. KeyCorp raised shares of Kimbell Royalty from a "sector weight" rating to an "overweight" rating and set a $17.00 price target for the company in a research note on Thursday, April 2nd. Zacks Research downgraded shares of Kimbell Royalty from a "strong-buy" rating to a "hold" rating in a research note on Thursday, January 22nd. Mizuho dropped their target price on Kimbell Royalty from $17.00 to $16.00 and set a "neutral" rating for the company in a research report on Friday, February 27th. Weiss Ratings raised Kimbell Royalty from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 2nd. Finally, Wall Street Zen downgraded Kimbell Royalty from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Kimbell Royalty currently has an average rating of "Hold" and an average price target of $17.33.

Kimbell Royalty Trading Up 0.6%

The stock has a market capitalization of $1.60 billion, a P/E ratio of 23.85, a PEG ratio of 2.72 and a beta of 0.29. The stock's fifty day moving average price is $14.45 and its 200 day moving average price is $13.35. The company has a debt-to-equity ratio of 0.72, a current ratio of 8.64 and a quick ratio of 8.64.

Kimbell Royalty (NYSE:KRP - Get Free Report) last issued its quarterly earnings data on Thursday, February 26th. The energy company reported $0.21 earnings per share for the quarter, beating analysts' consensus estimates of $0.14 by $0.07. The company had revenue of $82.45 million for the quarter, compared to the consensus estimate of $76.78 million. Kimbell Royalty had a return on equity of 13.73% and a net margin of 26.43%.The firm's revenue for the quarter was up 23.7% compared to the same quarter last year. During the same quarter last year, the company earned ($0.48) earnings per share. Research analysts forecast that Kimbell Royalty will post 0.93 earnings per share for the current year.

Kimbell Royalty Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 18th were given a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a dividend yield of 10.0%. The ex-dividend date of this dividend was Wednesday, March 18th. This is an increase from Kimbell Royalty's previous quarterly dividend of $0.35. Kimbell Royalty's payout ratio is presently 238.71%.

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

Insider Buying and Selling

In other Kimbell Royalty news, insider Blayne Rhynsburger sold 6,609 shares of the stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $14.48, for a total transaction of $95,698.32. Following the sale, the insider directly owned 75,163 shares of the company's stock, valued at approximately $1,088,360.24. This trade represents a 8.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 5.60% of the company's stock.

Institutional Trading of Kimbell Royalty

A number of hedge funds have recently modified their holdings of KRP. Van ECK Associates Corp purchased a new position in Kimbell Royalty during the fourth quarter valued at approximately $6,604,000. Cubist Systematic Strategies LLC purchased a new position in shares of Kimbell Royalty during the 2nd quarter valued at approximately $5,445,000. Adage Capital Partners GP L.L.C. lifted its stake in shares of Kimbell Royalty by 32.1% in the 4th quarter. Adage Capital Partners GP L.L.C. now owns 1,210,948 shares of the energy company's stock valued at $14,241,000 after purchasing an additional 294,482 shares during the period. CIBC Bancorp USA Inc. purchased a new stake in Kimbell Royalty during the third quarter worth $3,472,000. Finally, American Century Companies Inc. grew its position in 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 period. 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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