Kimbell Royalty (NYSE:KRP) Hits New 1-Year High - What's Next?

Key Points

• Kimbell Royalty shares reached a new 52-week high of $15.81, while analysts broadly remain bullish. The stock has a consensus “Buy” rating and an average price target of $18.25.
• The company reported strong quarterly results, with EPS of $0.40 versus the $0.23 consensus and revenue of $112.48 million, up 29.9% year over year.
• Kimbell increased its quarterly dividend to $0.47 per share, representing a $1.88 annualized payout and approximately 12% yield, though its payout ratio stands at 223.81%.

Shares of Kimbell Royalty (NYSE:KRP - Get Free Report) hit a new 52-week high during trading on Wednesday. The company traded as high as $15.81 and last traded at $15.6930, with a volume of 35,405 shares trading hands. The stock had previously closed at $15.75.

Wall Street Analyst Weigh In

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

Kimbell Royalty Stock Down 0.2%

The stock has a market capitalization of $1.80 billion, a price-to-earnings ratio of 18.71 and a beta of 0.44. The company has a quick ratio of 7.30, a current ratio of 7.30 and a debt-to-equity ratio of 0.71. The firm has a 50-day moving average of $14.90 and a two-hundred day moving average of $14.86.

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

Kimbell Royalty Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, August 24th. Investors of record on Monday, August 17th were paid a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a yield of 12.0%. The ex-dividend date was Monday, August 17th. This is a positive change from Kimbell Royalty's previous quarterly dividend of $0.41. Kimbell Royalty's dividend payout ratio is currently 223.81%.

Insider Activity

In other Kimbell Royalty news, insider Blayne Rhynsburger sold 4,524 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $15.08, for a total value of $68,221.92. Following the completion of the sale, the insider directly owned 70,639 shares of the company's stock, valued at $1,065,236.12. This represents a 6.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 5.60% of the company's stock.

Hedge Funds Weigh In On Kimbell Royalty

Hedge funds have recently made changes to their positions in the business. Mirador Capital Partners LP lifted its position in shares of Kimbell Royalty by 1.8% during the 3rd quarter. Mirador Capital Partners LP now owns 249,616 shares of the energy company's stock worth $3,565,000 after buying an additional 4,446 shares during the period. Rhodes Investment Advisors Inc. ADV grew its position in Kimbell Royalty by 1.6% in the third quarter. Rhodes Investment Advisors Inc. ADV now owns 151,160 shares of the energy company's stock valued at $2,159,000 after acquiring an additional 2,319 shares during the period. Olistico Wealth LLC bought a new stake in Kimbell Royalty in the third quarter valued at $97,000. Envestnet Asset Management Inc. raised its stake in Kimbell Royalty by 12.2% during the second quarter. Envestnet Asset Management Inc. now owns 41,479 shares of the energy company's stock worth $603,000 after acquiring an additional 4,518 shares in the last quarter. Finally, State Street Corp raised its stake in Kimbell Royalty by 58.6% during the second quarter. State Street Corp now owns 146,932 shares of the energy company's stock worth $2,135,000 after acquiring an additional 54,288 shares in the last quarter. 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 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.

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