Kimbell Royalty (NYSE:KRP) Sets New 12-Month High – Time to Buy?

Shares of Kimbell Royalty (NYSE:KRP) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $15.67 and last traded at $15.6950, with a volume of 190800 shares trading hands. The stock had previously closed at $15.31.

Analyst Ratings Changes

A number of equities research analysts have issued reports on KRP shares. Citigroup upped their price objective on Kimbell Royalty from $17.00 to $19.00 and gave the company a “buy” rating in a research report on Tuesday, March 31st. KeyCorp upgraded 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. Wall Street Zen downgraded Kimbell Royalty from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Mizuho reduced their price target on Kimbell Royalty from $17.00 to $16.00 and set a “neutral” rating on the stock in a report on Friday, February 27th. Finally, Royal Bank Of Canada started coverage on Kimbell Royalty in a report on Friday, May 29th. They issued an “outperform” rating and a $20.00 price target on the stock. Three 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 a consensus rating of “Moderate Buy” and a consensus target price of $18.00.

Kimbell Royalty Stock Performance

The company has a debt-to-equity ratio of 0.77, a current ratio of 5.12 and a quick ratio of 5.12. The firm has a fifty day moving average price of $14.90 and a two-hundred day moving average price of $13.78. The stock has a market capitalization of $1.66 billion, a PE ratio of 33.40 and a beta of 0.29.

Kimbell Royalty (NYSE:KRP) last issued its quarterly earnings results on Thursday, May 7th. The energy company reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.23 by ($0.19). Kimbell Royalty had a return on equity of 11.70% and a net margin of 22.76%.The business had revenue of $65.54 million during the quarter, compared to analysts’ expectations of $90.25 million. During the same quarter in the previous year, the company posted $0.20 earnings per share. The company’s quarterly revenue was down 6.7% compared to the same quarter last year. Research analysts expect that Kimbell Royalty will post 0.97 EPS for the current year.

Kimbell Royalty Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Tuesday, May 19th were paid a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 10.7%. This is an increase from Kimbell Royalty’s previous quarterly dividend of $0.37. The ex-dividend date of this dividend was Tuesday, May 19th. Kimbell Royalty’s payout ratio is currently 356.52%.

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

Insider Transactions at Kimbell Royalty

In related news, insider Blayne Rhynsburger sold 6,609 shares of the stock in a transaction that occurred on 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 represents a 8.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 5.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Ascentis Independent Advisors bought a new stake in Kimbell Royalty during the 1st quarter valued at $60,000. State of Wyoming bought a new stake in Kimbell Royalty during the 3rd quarter valued at $62,000. EverSource Wealth Advisors LLC boosted its position 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 acquiring an additional 1,250 shares in the last quarter. HB Wealth Management LLC bought a new stake in Kimbell Royalty during the 1st quarter valued at $145,000. Finally, Marex Group plc bought a new stake in Kimbell Royalty during the 4th quarter valued at $118,000. Institutional investors own 25.78% of the company’s stock.

About Kimbell Royalty

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.