Kennametal Inc. (NYSE:KMT) Receives Consensus Recommendation of “Reduce” from Analysts

Kennametal Inc. (NYSE:KMT) has earned a consensus recommendation of “Reduce” from the five analysts that are covering the firm, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation and three have given a hold recommendation to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $23.83.

A number of research firms recently weighed in on KMT. Barclays lifted their price objective on shares of Kennametal from $24.00 to $25.00 and gave the company an “equal weight” rating in a research report on Friday. Loop Capital lowered their price objective on shares of Kennametal from $24.00 to $22.00 and set a “hold” rating on the stock in a research report on Friday, June 21st. Finally, StockNews.com lowered shares of Kennametal from a “buy” rating to a “hold” rating in a research report on Friday, July 12th.

Kennametal Stock Performance

Shares of KMT opened at $24.28 on Tuesday. The company’s 50 day simple moving average is $24.21 and its 200-day simple moving average is $24.53. Kennametal has a 12-month low of $22.08 and a 12-month high of $27.05. The company has a current ratio of 2.42, a quick ratio of 1.09 and a debt-to-equity ratio of 0.46. The firm has a market cap of $1.91 billion, a PE ratio of 17.99, a price-to-earnings-growth ratio of 2.37 and a beta of 1.66.

Kennametal (NYSE:KMT) last posted its quarterly earnings data on Wednesday, August 7th. The industrial products company reported $0.49 earnings per share for the quarter, beating analysts’ consensus estimates of $0.44 by $0.05. Kennametal had a net margin of 5.29% and a return on equity of 9.35%. The firm had revenue of $543.31 million for the quarter, compared to analyst estimates of $532.72 million. During the same period last year, the firm posted $0.51 EPS. Kennametal’s quarterly revenue was down 1.3% on a year-over-year basis. As a group, equities analysts predict that Kennametal will post 1.45 EPS for the current year.

Kennametal Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 27th. Shareholders of record on Tuesday, August 13th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, August 13th. This represents a $0.80 annualized dividend and a dividend yield of 3.29%. Kennametal’s payout ratio is currently 59.26%.

Insiders Place Their Bets

In related news, CEO Sanjay Chowbey bought 5,000 shares of the firm’s stock in a transaction on Monday, June 10th. The shares were bought at an average cost of $24.28 per share, for a total transaction of $121,400.00. Following the transaction, the chief executive officer now owns 49,270 shares of the company’s stock, valued at $1,196,275.60. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 1.61% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Signaturefd LLC raised its stake in shares of Kennametal by 119.6% during the 4th quarter. Signaturefd LLC now owns 1,107 shares of the industrial products company’s stock worth $29,000 after buying an additional 603 shares during the last quarter. Canada Pension Plan Investment Board acquired a new position in shares of Kennametal during the 2nd quarter worth $28,000. Headlands Technologies LLC acquired a new position in shares of Kennametal during the 1st quarter worth $32,000. First United Bank & Trust acquired a new position in shares of Kennametal during the 4th quarter worth $45,000. Finally, CWM LLC raised its stake in shares of Kennametal by 191.1% during the 4th quarter. CWM LLC now owns 1,767 shares of the industrial products company’s stock worth $46,000 after buying an additional 1,160 shares during the last quarter.

Kennametal Company Profile

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.