KRP drew a fresh Outperform rating from RBC Capital on May 29. The firm set a $20 target — 33% above the current $15.01 close. That's the bullish case. Options traders aren't convinced.
RBC's Scott Hanold initiated at Outperform with a $20 target. That follows a string of constructive moves. Keybanc upgraded to Overweight in April. Citigroup raised its target to $19 in March. The consensus sits at Buy, with a mean target of $19.
But the put/call ratio has climbed to 0.616 — above the 20-day mean of 0.55. It recently hit 2.3 standard deviations above its mean. That's the options market building downside protection even as analysts turn more positive.
The divergence is the story here.
SI % of free float rose 34% over the past week to 2.19%. Over the past month, it's up 76%. Both moves are notable in pace. In absolute terms, the level remains modest. Just over 2 million shares are short.
The lending market is wide open. Availability sits at 1,217% — more than twelve shares available to borrow for every one currently borrowed. There is no constraint on shorting activity here. The rise in SI reflects deliberate positioning, not a supply-driven squeeze.
Cost to borrow fell 69% over the past week to 0.51%. That's the lowest level in the 30-day window. It peaked above 2.67% in late April. The sharp drop suggests the incremental demand for borrows isn't driving up prices — supply is ample, and borrow remains cheap.
This combination — rising SI, falling CTB, high availability — points to shorts adding on favourable terms. Not a panic trade. A deliberate lean.
Two factor scores stand out. The dividend score ranks at the 99th percentile. The analyst recommendation differential ranks at the 90th percentile — meaning analyst consensus has shifted more positively for KRP than for most peers. EPS momentum over 30 days also sits at the 90th percentile.
Those are tailwinds the shorts are betting against. The EV/EBITDA of 7.0x has compressed 0.24 points over the past 30 days — modest multiple pressure consistent with energy sector softness.
Peers including MGY, DVN, and EOG were each down 4–6% over the past week. CRGY fell over 11%. KRP was down just 1.2%. The relative resilience is notable given the sector backdrop.
What to watch: Whether the options skew and SI build persist into the August earnings date — or whether the analyst upgrade cycle pulls capital back in first.
See the live data behind this article on ORTEX.
Open KRP on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
