Key Points
- Insider sale: Blayne Rhynsburger sold 6,609 Kimbell Royalty shares at an average price of $14.48 for about $95,698, leaving him with 75,163 shares — an 8.08% reduction in his ownership.
- Dividend hike with high yield: The company raised its quarterly dividend to $0.37 (annualized $1.48), yielding 10.2%, though the payout ratio stands at a stretched 238.71%.
- Strong quarter and buyback: Kimbell reported quarterly EPS of $0.21 (beating $0.14 expected) and revenue up 23.7% year-over-year to $82.45M, and its board authorized a $100 million share repurchase program (up to ~6.4% of shares).
Kimbell Royalty (NYSE:KRP - Get Free Report) insider Blayne Rhynsburger sold 6,609 shares of the business's stock in a transaction that occurred 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 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 SEC, which is available through this link.
Kimbell Royalty Stock Performance
Shares of KRP stock opened at $14.53 on Thursday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 8.64 and a current ratio of 8.64. Kimbell Royalty has a 52 week low of $10.98 and a 52 week high of $15.12. The company's 50 day moving average price is $13.90 and its two-hundred day moving average price is $13.21. The company has a market capitalization of $1.57 billion, a P/E ratio of 23.43, a price-to-earnings-growth ratio of 3.46 and a beta of 0.30.
Kimbell Royalty (NYSE:KRP - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The energy company reported $0.21 earnings per share for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $76.78 million. During the same quarter in the prior year, the company earned ($0.48) earnings per share. The business's quarterly revenue was up 23.7% compared to the same quarter last year. On average, analysts expect that Kimbell Royalty will post 0.65 earnings per share for the current fiscal year.
Kimbell Royalty Increases Dividend
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Wednesday, March 18th were given a $0.37 dividend. The ex-dividend date of this dividend was Wednesday, March 18th. This represents a $1.48 annualized dividend and a yield of 10.2%. This is an increase from Kimbell Royalty's previous quarterly dividend of $0.35. Kimbell Royalty's payout ratio is presently 238.71%.
Kimbell Royalty declared that its Board of Directors has authorized a share buyback program on Monday, March 9th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the energy company to purchase up to 6.4% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.
Institutional Trading of Kimbell Royalty
Hedge funds and other institutional investors have recently modified their holdings of the stock. American Century Companies Inc. increased its stake in shares of Kimbell Royalty by 9.2% in the third quarter. American Century Companies Inc. now owns 3,026,429 shares of the energy company's stock valued at $40,827,000 after buying an additional 255,688 shares during the period. Adage Capital Partners GP L.L.C. lifted its holdings in Kimbell Royalty by 32.1% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 1,210,948 shares of the energy company's stock valued at $14,241,000 after buying an additional 294,482 shares during the period. UBS Group AG lifted its stake in shares of Kimbell Royalty by 9.4% in the 4th quarter. UBS Group AG now owns 1,009,057 shares of the energy company's stock valued at $11,867,000 after purchasing an additional 86,957 shares during the period. Energy Income Partners LLC lifted its stake in Kimbell Royalty by 12.3% in the third quarter. Energy Income Partners LLC now owns 647,396 shares of the energy company's stock valued at $8,733,000 after buying an additional 70,783 shares during the period. Finally, Pin Oak Investment Advisors Inc. lifted its position in shares of Kimbell Royalty by 0.9% during the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 618,128 shares of the energy company's stock valued at $8,339,000 after acquiring an additional 5,213 shares during the period. Institutional investors own 25.78% of the company's stock.
Analyst Ratings Changes
A number of research analysts recently weighed in on the stock. Zacks Research downgraded shares of Kimbell Royalty from a "strong-buy" rating to a "hold" rating in a research report on Thursday, January 22nd. Wall Street Zen downgraded Kimbell Royalty from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Citigroup increased their price objective on shares of Kimbell Royalty from $15.00 to $17.00 and gave the company a "buy" rating in a research report on Wednesday, March 11th. Mizuho dropped their price target on Kimbell Royalty from $17.00 to $16.00 and set a "neutral" rating for the company in a report on Friday, February 27th. Finally, Weiss Ratings upgraded shares of Kimbell Royalty from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 2nd. One research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $16.67.
View Our Latest Stock Analysis on KRP
Kimbell Royalty Company Profile
(
Get Free Report)
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.
Further Reading
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