Kimbell Royalty (NYSE:KRP) Hits New 1-Year High - Here's Why

Key Points

• Kimbell Royalty shares reached a new 52-week high of $16.48, supported by a consensus “Buy” rating and an average analyst price target of $18.25.
• The company exceeded quarterly expectations, reporting $0.40 in EPS versus the $0.23 consensus and revenue of $112.48 million, up 29.9% year over year.
• Kimbell raised its quarterly dividend to $0.47, implying an annualized payout of $1.88 and an 11.5% dividend yield; however, its payout ratio stood at 223.81%.

Kimbell Royalty (NYSE:KRP - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $16.48 and last traded at $16.4050, with a volume of 1,229,351 shares traded. The stock had previously closed at $16.28.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. KeyCorp increased their price target on shares of Kimbell Royalty from $17.00 to $18.00 and gave the company an "overweight" rating in a research note on Tuesday, September 15th. Weiss Ratings raised shares of Kimbell Royalty from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, October 13th. Zacks Research upgraded shares of Kimbell Royalty from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 30th. Finally, Wall Street Zen upgraded shares of Kimbell Royalty from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Kimbell Royalty currently has a consensus rating of "Buy" and an average price target of $18.25.

Kimbell Royalty Stock Up 0.8%

The firm has a market cap of $1.88 billion, a P/E ratio of 19.38 and a beta of 0.44. The firm's fifty day moving average is $15.01 and its 200 day moving average is $14.90. The company has a debt-to-equity ratio of 0.71, a quick ratio of 7.30 and a current ratio of 7.30.

Kimbell Royalty (NYSE:KRP - Get Free Report) last released its quarterly earnings results on Friday, August 7th. The energy company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.17. The firm had revenue of $112.48 million for the quarter, compared to analysts' expectations of $93.45 million. Kimbell Royalty had a net margin of 27.17% and a return on equity of 14.95%. The business's revenue was up 29.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.02 EPS. As a group, equities research analysts anticipate that Kimbell Royalty will post 1.10 earnings per share for the current fiscal year.

Kimbell Royalty Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 24th. Stockholders of record on Monday, August 17th were given a $0.47 dividend. The ex-dividend date of this dividend was Monday, August 17th. This is a positive change from Kimbell Royalty's previous quarterly dividend of $0.41. This represents a $1.88 annualized dividend and a dividend yield of 11.5%. Kimbell Royalty's dividend payout ratio (DPR) is currently 223.81%.

Insider Activity at Kimbell Royalty

In other news, insider Blayne Rhynsburger sold 4,524 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $15.08, for a total transaction of $68,221.92. Following the transaction, the insider owned 70,639 shares in the company, valued at approximately $1,065,236.12. This trade represents a 6.02% decrease in their ownership of the stock. 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

Hedge funds have recently added to or reduced their stakes in the company. Mirador Capital Partners LP raised its holdings in Kimbell Royalty by 1.8% in the 3rd quarter. Mirador Capital Partners LP now owns 249,616 shares of the energy company's stock valued at $3,565,000 after acquiring an additional 4,446 shares in the last quarter. Rhodes Investment Advisors Inc. ADV boosted its holdings in Kimbell Royalty by 1.6% during the 3rd quarter. Rhodes Investment Advisors Inc. ADV now owns 151,160 shares of the energy company's stock worth $2,159,000 after acquiring an additional 2,319 shares during the last quarter. Olistico Wealth LLC bought a new stake in Kimbell Royalty in the 3rd quarter worth about $97,000. Envestnet Asset Management Inc. increased its position in shares of Kimbell Royalty by 12.2% during the second quarter. Envestnet Asset Management Inc. now owns 41,479 shares of the energy company's stock valued at $603,000 after acquiring an additional 4,518 shares during the last quarter. Finally, State Street Corp increased its position in shares of Kimbell Royalty by 58.6% during the 2nd quarter. State Street Corp now owns 146,932 shares of the energy company's stock valued at $2,135,000 after purchasing an additional 54,288 shares during the last quarter. 25.78% of the stock is owned by institutional investors and hedge funds.

Kimbell Royalty Company Profile

Kimbell Royalty Partners, LP NYSE: KRP is a publicly traded oil and gas mineral and royalty company headquartered in Fort Worth, Texas. The partnership owns and acquires mineral, royalty, overriding royalty and other non-cost-bearing interests in oil and natural gas properties across the United States.

Kimbell's interests are located primarily in major onshore producing regions, including the Permian, Eagle Ford, Bakken, Haynesville, Mid-Continent and Rocky Mountain basins. Because royalty interests generally do not require the owner to fund drilling, completion or operating expenses, the company's business model is focused on receiving a share of production revenues from wells operated by exploration and production companies.

The company was formed in 2015 and completed its initial public offering in 2017.

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.