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

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 traded. The stock had previously closed at $16.28.

Analysts Set New Price Targets

A number of research firms recently issued reports on KRP. KeyCorp lifted their target price on Kimbell Royalty from $17.00 to $18.00 and gave the company an “overweight” rating in a report on Tuesday, September 15th. Wall Street Zen raised Kimbell Royalty from a “hold” rating to a “buy” rating in a research note on Saturday, August 15th. Weiss Ratings upgraded Kimbell Royalty from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, October 13th. Finally, Zacks Research upgraded Kimbell Royalty from a “hold” rating to a “strong-buy” rating in a report on Wednesday, September 30th. One research 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 stock. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $18.25.

Kimbell Royalty Trading Down 0.7%

The company’s fifty day moving average is $15.06 and its two-hundred day moving average is $14.93. The stock has a market cap of $1.89 billion, a price-to-earnings ratio of 19.73 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.

Kimbell Royalty (NYSE:KRP) last issued its quarterly earnings results on Friday, August 7th. The energy company reported $0.40 earnings per share (EPS) for the quarter, topping 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 company had revenue of $112.48 million during the quarter, compared to the consensus estimate of $93.45 million. During the same quarter in the previous year, the firm earned $0.02 earnings per share. The firm’s quarterly revenue was up 29.9% on a year-over-year basis. On average, research analysts predict that Kimbell Royalty will post 1.10 EPS for the current fiscal year.

Kimbell Royalty Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 24th. Stockholders of record on Monday, August 17th were issued a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a dividend yield of 11.4%. 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 (DPR) is 223.81%.

Insider Buying and Selling at Kimbell Royalty

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

Hedge Funds Weigh In On Kimbell Royalty

Institutional investors and hedge funds have recently modified their holdings of the company. Van ECK Associates Corp increased its holdings in Kimbell Royalty by 329.4% in the second quarter. Van ECK Associates Corp now owns 3,627,850 shares of the energy company’s stock valued at $52,713,000 after buying an additional 2,783,040 shares during the last quarter. Royal Bank of Canada lifted its holdings in Kimbell Royalty by 32.0% during the 1st quarter. Royal Bank of Canada now owns 596,687 shares of the energy company’s stock worth $8,634,000 after buying an additional 144,644 shares during the last quarter. Pin Oak Investment Advisors Inc. purchased a new stake in Kimbell Royalty during the 2nd quarter worth about $8,432,000. Arrowstreet Capital Limited Partnership purchased a new stake in Kimbell Royalty during the 1st quarter worth about $7,405,000. Finally, Oxbow Advisors LLC acquired a new position in shares of Kimbell Royalty during the 2nd quarter worth about $5,928,000. Institutional investors and hedge funds own 25.78% of the company’s stock.

About Kimbell Royalty

Kimbell Royalty Partners, LP (NYSE: KRP) is a publicly traded oil and natural gas mineral and royalty company. It owns mineral, royalty, overriding royalty, and non-operated working interests in producing and undeveloped properties across the onshore United States.

The partnership generates revenue primarily from its share of oil, natural gas, and natural gas liquids produced from properties operated by third-party exploration and production companies. Its asset base is concentrated in major U.S.