Kennametal (NYSE:KMT) Cut to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Kennametal from “strong buy” to “buy.” Other analysts have also lowered ratings or price targets; MarketBeat lists a consensus “Reduce” rating and a $33.07 target price.
• Kennametal reported quarterly EPS of $3.48, beating the $2.65 consensus, while revenue of $768.19 million came in slightly below estimates. Revenue rose 54.3% year over year.
• The stock opened at $23.06, near its 52-week low of $22.65. CEO Sanjay Chowbey bought 7,000 shares at an average price of $23.62.

Kennametal (NYSE:KMT - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Other equities analysts have also recently issued reports about the company. DA Davidson decreased their target price on Kennametal from $34.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, August 11th. JPMorgan Chase & Co. cut their price objective on Kennametal from $30.00 to $27.00 and set an "underweight" rating for the company in a research report on Thursday. Morgan Stanley downgraded Kennametal from an "equal weight" rating to an "underweight" rating and decreased their price target for the stock from $31.00 to $27.00 in a research note on Monday, August 10th. Weiss Ratings cut shares of Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, October 23rd. Finally, Zacks Research cut Kennametal from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, October 14th. Five investment analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $33.07.

Kennametal Stock Down 0.7%

Kennametal stock opened at $23.06 on Friday. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.62 and a quick ratio of 0.98. Kennametal has a 1-year low of $22.65 and a 1-year high of $43.81. The stock's 50 day moving average price is $30.10 and its 200 day moving average price is $34.42. The company has a market cap of $1.76 billion, a PE ratio of 3.04, a price-to-earnings-growth ratio of 0.30 and a beta of 1.30.

Kennametal (NYSE:KMT - Get Free Report) last posted its earnings results on Wednesday, November 4th. The industrial products company reported $3.48 EPS for the quarter, topping the consensus estimate of $2.65 by $0.83. The firm had revenue of $768.19 million for the quarter, compared to the consensus estimate of $770.36 million. Kennametal had a net margin of 14.53% and a return on equity of 24.83%. The business's quarterly revenue was up 54.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.34 earnings per share. On average, sell-side analysts predict that Kennametal will post 5.18 EPS for the current fiscal year.

Insider Activity at Kennametal

In related news, VP Judith L. Bacchus sold 9,676 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $30.29, for a total transaction of $293,086.04. Following the sale, the vice president owned 15,721 shares in the company, valued at approximately $476,189.09. This trade represents a 38.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Sanjay Chowbey acquired 7,000 shares of the business's stock in a transaction on Thursday, November 5th. The stock was acquired at an average cost of $23.62 per share, for a total transaction of $165,340.00. Following the transaction, the chief executive officer owned 280,957 shares of the company's stock, valued at approximately $6,636,204.34. The trade was a 2.56% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 1.65% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Kennametal

Institutional investors and hedge funds have recently modified their holdings of the company. Amundi grew its stake in shares of Kennametal by 244.7% during the 2nd quarter. Amundi now owns 162,786 shares of the industrial products company's stock valued at $5,706,000 after buying an additional 115,557 shares during the period. WINTON GROUP Ltd boosted its holdings in Kennametal by 170.1% during the second quarter. WINTON GROUP Ltd now owns 58,366 shares of the industrial products company's stock worth $2,046,000 after purchasing an additional 36,757 shares during the last quarter. William Blair Investment Management LLC acquired a new stake in shares of Kennametal during the 2nd quarter worth approximately $69,614,000. Deutsche Bank AG bought a new position in shares of Kennametal during the 2nd quarter worth about $9,166,000. Finally, Legal & General Group Plc bought a new stake in Kennametal during the 2nd quarter valued at $6,243,000.

Kennametal Company Profile

Kennametal Inc NYSE: KMT is a global industrial technology company that develops and manufactures tooling, engineered components and wear-resistant solutions. Its products are designed to help customers improve productivity, durability and performance in demanding manufacturing and industrial applications.

The company's offerings include metal-cutting tools and systems, tooling components, advanced materials, and products made with hard metals and other wear-resistant technologies. Kennametal also provides engineered solutions for applications such as machining, earthworks, energy production, transportation, aerospace, defense and general engineering.

Founded in 1938 by Philip M.

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