Kimbell Royalty (NYSE:KRP) Sets New 12-Month High - Here's What Happened

Key Points

• New 52-week high: Shares of Kimbell Royalty hit a 52-week high of $15.56 on Monday and last traded at $15.54 on volume of 69,366 shares.
• Earnings beat and growth: The company reported Q results of $0.21 EPS versus $0.14 expected and revenue of $82.45M (up 23.7% year‑over‑year), with a net margin of 26.43% and ROE of 13.73%.
• Capital returns and analyst view: Kimbell raised its quarterly dividend to $0.37 (annualized $1.48, ~9.5% yield) and approved a $100.0 million share repurchase (~6.4% of shares), while analysts remain mixed with a consensus rating of “Hold” and a $17.33 price target.

Shares of Kimbell Royalty (NYSE:KRP - Get Free Report) hit a new 52-week high during trading on Monday . The stock traded as high as $15.56 and last traded at $15.54, with a volume of 69366 shares trading hands. The stock had previously closed at $15.46.

Wall Street Analysts Forecast Growth

KRP has been the topic of several recent analyst reports. Zacks Research downgraded shares of Kimbell Royalty from a "strong-buy" rating to a "hold" rating in a research report on Thursday, January 22nd. Mizuho reduced their price target on shares of Kimbell Royalty from $17.00 to $16.00 and set a "neutral" rating on the stock in a report on Friday, February 27th. Citigroup lifted their price target on shares of Kimbell Royalty from $17.00 to $19.00 and gave the company a "buy" rating in a report on Tuesday, March 31st. KeyCorp upgraded shares of Kimbell Royalty from a "sector weight" rating to an "overweight" rating and set a $17.00 price target on the stock in a report on Thursday, April 2nd. Finally, Weiss Ratings upgraded shares of Kimbell Royalty from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Kimbell Royalty presently has an average rating of "Hold" and a consensus price target of $17.33.

Kimbell Royalty Stock Performance

The company has a debt-to-equity ratio of 0.72, a quick ratio of 8.64 and a current ratio of 8.64. The company has a market capitalization of $1.68 billion, a P/E ratio of 25.09, a P/E/G ratio of 2.66 and a beta of 0.29. The business's fifty day simple moving average is $14.53 and its 200-day simple moving average is $13.41.

Kimbell Royalty (NYSE:KRP - Get Free Report) last announced its quarterly earnings results on Thursday, February 26th. The energy company reported $0.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.14 by $0.07. Kimbell Royalty had a net margin of 26.43% and a return on equity of 13.73%. The company had revenue of $82.45 million for the quarter, compared to the consensus estimate of $76.78 million. During the same period in the previous year, the firm posted ($0.48) EPS. Kimbell Royalty's revenue for the quarter was up 23.7% compared to the same quarter last year. As a group, equities analysts anticipate that Kimbell Royalty will post 1 earnings per share for the current fiscal year.

Kimbell Royalty Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 18th were paid a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a dividend yield of 9.5%. 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 dividend payout ratio is 238.71%.

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

Insider Activity at Kimbell Royalty

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

Hedge Funds Weigh In On Kimbell Royalty

Institutional investors and hedge funds have recently made changes to their positions in the business. Nordea Investment Management AB grew its stake in shares of Kimbell Royalty by 18.3% in the 4th quarter. Nordea Investment Management AB now owns 220,716 shares of the energy company's stock worth $2,585,000 after buying an additional 34,175 shares in the last quarter. GraniteShares Advisors LLC boosted its stake in shares of Kimbell Royalty by 20.9% during the 4th quarter. GraniteShares Advisors LLC now owns 228,676 shares of the energy company's stock worth $2,689,000 after purchasing an additional 39,510 shares during the period. Freestone Capital Holdings LLC boosted its stake in shares of Kimbell Royalty by 81.7% during the 4th quarter. Freestone Capital Holdings LLC now owns 181,693 shares of the energy company's stock worth $2,137,000 after purchasing an additional 81,693 shares during the period. Truist Financial Corp boosted its stake in shares of Kimbell Royalty by 53.6% during the 3rd quarter. Truist Financial Corp now owns 120,363 shares of the energy company's stock worth $1,624,000 after purchasing an additional 42,002 shares during the period. Finally, American Century Companies Inc. boosted its stake in shares of Kimbell Royalty by 9.2% during the 3rd quarter. American Century Companies Inc. now owns 3,026,429 shares of the energy company's stock worth $40,827,000 after purchasing an additional 255,688 shares during the period. 25.78% of the stock is owned by hedge funds and other institutional investors.

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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