Kennametal (NYSE:KMT) Upgraded by Zacks Research to Strong-Buy Rating

Key Points

• Zacks Research upgraded Kennametal to “strong buy” from “hold,” but broader analyst sentiment remains cautious, with a consensus “reduce” rating and an average price target of $34.07.
• Kennametal reported quarterly EPS of $2.96, beating estimates of $2.31, while revenue reached $736.61 million and rose 42.6% year over year.
• The stock opened at $29.69, below its 50-day and 200-day moving averages. CEO Sanjay Chowbey bought 7,000 shares, while VP Judith Bacchus sold 9,676 shares.

Kennametal (NYSE:KMT - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Tuesday, Zacks reports.

Several other research firms have also weighed in on KMT. Weiss Ratings reiterated a "hold (c+)" rating on shares of Kennametal in a research note on Monday, August 17th. JPMorgan Chase & Co. reduced their price target on Kennametal from $40.00 to $34.00 and set an "underweight" rating for the company in a report on Monday, July 13th. DA Davidson decreased their target price on Kennametal from $34.00 to $30.00 and set a "neutral" rating on the stock in a research report on Tuesday, August 11th. Morgan Stanley cut shares of Kennametal from an "equal weight" rating to an "underweight" rating and dropped their price target for the company from $31.00 to $27.00 in a research note on Monday, August 10th. Finally, UBS Group reduced their price objective on shares of Kennametal from $39.00 to $35.00 and set a "neutral" rating for the company in a research report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $34.07.

Kennametal Stock Performance

NYSE KMT opened at $29.69 on Tuesday. The stock has a 50-day simple moving average of $31.94 and a two-hundred day simple moving average of $34.90. The firm has a market capitalization of $2.27 billion, a P/E ratio of 6.75, a PEG ratio of 0.29 and a beta of 1.34. Kennametal has a fifty-two week low of $20.35 and a fifty-two week high of $43.81. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.98 and a current ratio of 2.62.

Kennametal (NYSE:KMT - Get Free Report) last issued its earnings results on Wednesday, August 5th. The industrial products company reported $2.96 EPS for the quarter, topping analysts' consensus estimates of $2.31 by $0.65. The firm had revenue of $736.61 million for the quarter, compared to the consensus estimate of $725.74 million. Kennametal had a return on equity of 24.83% and a net margin of 14.53%.The company's revenue was up 42.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.34 earnings per share. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. On average, equities analysts forecast that Kennametal will post 4.82 earnings per share for the current year.

Insider Transactions at Kennametal

In other news, VP Judith Bacchus sold 9,676 shares of the business's 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 transaction, the vice president directly owned 15,721 shares in the company, valued at $476,189.09. The trade was a 38.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Sanjay Chowbey purchased 7,000 shares of the company's stock in a transaction dated Thursday, September 10th. The stock was bought at an average price of $29.10 per share, with a total value of $203,700.00. Following the completion of the transaction, the chief executive officer directly owned 246,839 shares of the company's stock, valued at approximately $7,183,014.90. This represents a 2.92% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 1.43% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kennametal

Several hedge funds and other institutional investors have recently bought and sold shares of KMT. BlackRock Inc. acquired a new stake in Kennametal in the 2nd quarter valued at approximately $440,446,000. William Blair Investment Management LLC acquired a new position in Kennametal during the second quarter worth $69,614,000. Medina Value Partners LLC purchased a new position in shares of Kennametal during the second quarter worth $43,007,296. NFJ Investment Group LLC acquired a new stake in shares of Kennametal in the second quarter valued at $36,202,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Kennametal in the second quarter valued at $33,949,000.

About Kennametal

Kennametal Inc NYSE: KMT is an industrial technology company that develops and manufactures tooling, engineered components and wear-resistant solutions for demanding applications. Its products are designed to help customers cut, shape, drill and protect materials used in manufacturing, transportation, energy, infrastructure and other industrial markets.

The company's offerings include carbide and ceramic cutting tools, indexable inserts, solid carbide tooling, toolholding systems and related metal-cutting products.

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