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

Kimbell Royalty (NYSE:KRP)’s share price reached a new 52-week high on Tuesday. The company traded as high as $16.48 and last traded at $16.4050, with a volume of 1,229,351 shares trading hands. The stock had previously closed at $16.28.

Analyst Upgrades and Downgrades

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

Kimbell Royalty Stock Up 0.8%

The company has a market capitalization of $1.88 billion, a PE ratio of 19.38 and a beta of 0.44. The company has a debt-to-equity ratio of 0.71, a quick ratio of 7.30 and a current ratio of 7.30. The stock’s 50 day moving average is $15.01 and its 200 day moving average is $14.90.

Kimbell Royalty (NYSE:KRP) last released its quarterly earnings data on Friday, August 7th. The energy company reported $0.40 earnings per share for the quarter, beating analysts’ consensus estimates of $0.23 by $0.17. Kimbell Royalty had a net margin of 27.17% and a return on equity of 14.95%. The business had revenue of $112.48 million during the quarter, compared to analyst estimates of $93.45 million. During the same period in the previous year, the business earned $0.02 EPS. Kimbell Royalty’s revenue was up 29.9% compared to the same quarter last year. On average, sell-side analysts anticipate that Kimbell Royalty will post 1.10 EPS for the current fiscal year.

Kimbell Royalty Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, August 24th. Shareholders of record on Monday, August 17th were given a dividend of $0.47 per share. This is an increase from Kimbell Royalty’s previous quarterly dividend of $0.41. This represents a $1.88 annualized dividend and a dividend yield of 11.5%. The ex-dividend date was Monday, August 17th. 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 firm’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $15.08, for a total value of $68,221.92. Following the completion of the transaction, the insider directly owned 70,639 shares of the company’s stock, valued at $1,065,236.12. This trade represents a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 5.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Kimbell Royalty

Several hedge funds have recently made changes to their positions in KRP. Mirador Capital Partners LP raised its stake 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 valued at $3,565,000 after purchasing an additional 4,446 shares during the period. Rhodes Investment Advisors Inc. ADV lifted 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 purchasing an additional 2,319 shares in the last quarter. Olistico Wealth LLC bought a new position in Kimbell Royalty in the 3rd quarter worth about $97,000. Envestnet Asset Management Inc. boosted its stake in Kimbell Royalty by 12.2% in the 2nd quarter. Envestnet Asset Management Inc. now owns 41,479 shares of the energy company’s stock worth $603,000 after purchasing an additional 4,518 shares during the period. Finally, State Street Corp boosted its stake in Kimbell Royalty by 58.6% in the 2nd quarter. State Street Corp now owns 146,932 shares of the energy company’s stock worth $2,135,000 after purchasing an additional 54,288 shares during the period. 25.78% of the stock is currently owned by hedge funds and other institutional investors.

About Kimbell Royalty

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.