Kennametal (NYSE:KMT) Stock Gets Price Target Reduction from DA Davidson

Key Points

• DA Davidson cut Kennametal’s price target from $30 to $25 and maintained a neutral rating, implying 2.33% upside from the stock’s then-current price of $24.43.
• Analyst sentiment is cautious: five analysts rate the stock Hold and four Sell, with an average rating of “Reduce” and an average target price of $32.36.
• Kennametal’s latest quarterly EPS of $3.48 beat estimates of $2.65, while revenue of $768.19 million fell slightly short of expectations. Revenue rose 54.3% year over year.

Kennametal (NYSE:KMT - Get Free Report) had its price objective lowered by research analysts at DA Davidson from $30.00 to $25.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage currently has a "neutral" rating on the industrial products company's stock. DA Davidson's price objective indicates a potential upside of 2.33% from the company's current price.

Several other equities research analysts have also commented on KMT. Morgan Stanley lowered shares of Kennametal from an "equal weight" rating to an "underweight" rating and decreased their price objective for the company from $31.00 to $27.00 in a research note on Monday, August 10th. Wall Street Zen downgraded Kennametal from a "strong-buy" rating to a "buy" rating in a research note on Saturday, November 7th. JPMorgan Chase & Co. reduced their target price on Kennametal from $30.00 to $27.00 and set an "underweight" rating for the company in a report on Thursday, November 5th. UBS Group reduced their target price on Kennametal from $39.00 to $35.00 and set a "neutral" rating for the company in a report on Monday, August 10th. Finally, Zacks Research downgraded Kennametal from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, October 14th. Five research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, Kennametal currently has an average rating of "Reduce" and an average target price of $32.36.

Kennametal Stock Down 0.7%

Shares of NYSE KMT traded down $0.16 during trading on Thursday, hitting $24.43. The stock had a trading volume of 344,418 shares, compared to its average volume of 1,444,517. Kennametal has a 12 month low of $22.65 and a 12 month high of $43.81. The company has a debt-to-equity ratio of 0.59, a current ratio of 3.45 and a quick ratio of 1.24. The company has a market capitalization of $1.88 billion, a PE ratio of 3.23, a PEG ratio of 0.22 and a beta of 1.30. The firm has a fifty day moving average of $29.80 and a two-hundred day moving average of $34.27.

Kennametal (NYSE:KMT - Get Free Report) last announced its earnings results on Wednesday, November 4th. The industrial products company reported $3.48 EPS for the quarter, beating the consensus estimate of $2.65 by $0.83. Kennametal had a net margin of 22.49% and a return on equity of 38.40%. The company had revenue of $768.19 million during the quarter, compared to the consensus estimate of $770.36 million. During the same quarter in the prior year, the company posted $0.34 earnings per share. The firm's revenue for the quarter was up 54.3% on a year-over-year basis. As a group, equities research analysts forecast that Kennametal will post 5.18 EPS for the current fiscal year.

Insider Activity

In related news, CFO Patrick S. Watson purchased 2,000 shares of the firm's stock in a transaction dated Friday, November 6th. The stock was bought at an average price of $23.50 per share, for a total transaction of $47,000.00. Following the purchase, the chief financial officer directly owned 98,523 shares in the company, valued at approximately $2,315,290.50. This trade represents a 2.07% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Judith L. Bacchus sold 9,676 shares of Kennametal stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $30.29, for a total transaction of $293,086.04. Following the completion of the sale, the vice president directly owned 15,721 shares in the company, valued at $476,189.09. This trade represents a 38.10% decrease in their position. The SEC filing for this sale provides additional information. Insiders purchased 16,000 shares of company stock valued at $416,040 in the last three months. Company insiders own 1.65% of the company's stock.

Hedge Funds Weigh In On Kennametal

Several institutional investors have recently bought and sold shares of the company. Allworth Financial LP purchased a new stake in Kennametal in the second quarter worth $25,000. Nykredit A S bought a new stake in shares of Kennametal in the second quarter valued at $37,000. Integrated Wealth Concepts LLC purchased a new position in shares of Kennametal during the 2nd quarter valued at $44,000. Signaturefd LLC lifted its position in shares of Kennametal by 377.7% during the 3rd quarter. Signaturefd LLC now owns 1,696 shares of the industrial products company's stock valued at $52,000 after buying an additional 1,341 shares during the last quarter. Finally, C M Bidwell & Associates Ltd. purchased a new position in shares of Kennametal during the 2nd quarter valued at $70,000.

About Kennametal

Kennametal Inc. is an industrial technology company that develops and manufactures metal-cutting tools, tooling systems, and wear-resistant products. Its products use materials such as tungsten carbide and advanced ceramics to help customers machine components and protect equipment used in demanding operating conditions. The company serves industries including aerospace, transportation, energy, general engineering, and earthworks. Its products and services include cutting tools and related tooling, engineered components, and wear solutions for industrial applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.