Kadant (NYSE:KAI) Upgraded to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Kadant (NYSE:KAI) from a sell rating to a hold rating in a research report released on Wednesday morning, Zacks.com reports. They currently have $123.00 price objective on the industrial products company’s stock.

According to Zacks, “Kadant Inc. is a leading supplier of a range of products and systems for the global papermaking and paper-recycling industries, including de-inking systems, stock-preparation equipment, water-management systems, and papermaking accessories. Through its majority-owned Thermo Fibergen subsidiary, the company also develops and commercializes composite building materials produced from natural fiber and recycled plastic. Kadant is a public subsidiary of Thermo Electron Corporation.(Press Release) “

A number of other analysts have also recently commented on KAI. TheStreet raised Kadant from a c+ rating to a b- rating in a research report on Thursday, June 4th. Sidoti cut Kadant from a buy rating to a neutral rating and set a $102.00 price target on the stock. in a research report on Thursday, May 28th. Barrington Research cut Kadant from an outperform rating to a market perform rating in a research report on Thursday, May 28th. Finally, DA Davidson boosted their price target on Kadant from $75.00 to $105.00 in a research report on Monday, July 27th. Five research analysts have rated the stock with a hold rating, Kadant has a consensus rating of Hold and a consensus target price of $106.25.

Kadant stock opened at $108.51 on Wednesday. The stock’s 50 day simple moving average is $105.76 and its two-hundred day simple moving average is $94.03. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.42 and a current ratio of 2.21. The stock has a market cap of $1.26 billion, a price-to-earnings ratio of 22.57 and a beta of 1.40. Kadant has a fifty-two week low of $52.71 and a fifty-two week high of $120.74.

Kadant (NYSE:KAI) last posted its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $1.06 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.74 by $0.32. Kadant had a return on equity of 13.38% and a net margin of 7.33%. The business had revenue of $152.90 million for the quarter, compared to analysts’ expectations of $149.86 million. During the same period in the previous year, the firm posted $1.42 EPS. The business’s revenue was down 13.7% on a year-over-year basis. On average, analysts predict that Kadant will post 4.21 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 6th. Investors of record on Thursday, July 9th will be issued a $0.24 dividend. The ex-dividend date is Wednesday, July 8th. This represents a $0.96 dividend on an annualized basis and a yield of 0.88%. Kadant’s payout ratio is currently 17.91%.

In related news, COO Eric T. Langevin sold 4,000 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $90.95, for a total value of $363,800.00. Following the completion of the transaction, the chief operating officer now directly owns 54,039 shares in the company, valued at approximately $4,914,847.05. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Eric T. Langevin sold 1,497 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $94.43, for a total transaction of $141,361.71. Following the completion of the transaction, the chief operating officer now owns 54,165 shares of the company’s stock, valued at $5,114,800.95. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 6,371 shares of company stock valued at $586,059. 2.30% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently made changes to their positions in the business. Parametric Portfolio Associates LLC raised its stake in Kadant by 2.1% during the 1st quarter. Parametric Portfolio Associates LLC now owns 28,687 shares of the industrial products company’s stock valued at $2,141,000 after buying an additional 587 shares during the last quarter. Deutsche Bank AG raised its stake in Kadant by 237.1% during the 1st quarter. Deutsche Bank AG now owns 13,603 shares of the industrial products company’s stock valued at $1,016,000 after buying an additional 9,568 shares during the last quarter. Geode Capital Management LLC raised its stake in Kadant by 7.7% during the 1st quarter. Geode Capital Management LLC now owns 156,637 shares of the industrial products company’s stock valued at $11,692,000 after buying an additional 11,141 shares during the last quarter. BNP Paribas Arbitrage SA raised its stake in Kadant by 162.5% during the 1st quarter. BNP Paribas Arbitrage SA now owns 4,345 shares of the industrial products company’s stock valued at $324,000 after buying an additional 2,690 shares during the last quarter. Finally, Riverbridge Partners LLC purchased a new stake in Kadant during the 2nd quarter valued at $21,347,000. Institutional investors and hedge funds own 99.10% of the company’s stock.

About Kadant

Kadant Inc supplies equipment and critical components used in papermaking, paper recycling, recycling and waste management, and other process industries worldwide. The company operates in two segments, Papermaking Systems and Wood Processing Systems. The Papermaking Systems segment develops, manufactures, and markets custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper and balers, as well as related equipment used in the processing of recyclable and waste materials; and fluid-handling systems and equipment used in industrial piping systems to compensate for movement, as well as to transfer fluid, power, and data.

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