Kennametal Inc. (NYSE:KMT) Given Average Rating of "Reduce" by Analysts

Key Points

• Analysts remain cautious on Kennametal: Nine firms collectively rate the stock “Reduce,” including four sell and five hold ratings, with an average 12-month price target of $34.07 versus its recent $29.26 price.
• Kennametal reported stronger-than-expected quarterly results, with earnings per share of $2.96 topping the $2.31 consensus estimate and revenue rising 42.6% year over year to $736.61 million.
• The company paid a quarterly dividend of $0.20 per share, equivalent to an annualized $0.80 dividend and a 2.7% yield. However, insiders sold 47,000 shares worth approximately $1.58 million over the past 90 days.

Kennametal Inc. (NYSE:KMT - Get Free Report) has been assigned an average rating of "Reduce" from the nine ratings firms that are presently covering the stock, MarketBeat.com reports. Four analysts have rated the stock with a sell rating and five have given a hold rating to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $34.0714.

Several research firms recently commented on KMT. Jefferies Financial Group lowered Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price target on the stock. in a research report on Thursday, May 7th. Zacks Research downgraded shares of Kennametal from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 14th. UBS Group dropped their price objective on shares of Kennametal from $39.00 to $35.00 and set a "neutral" rating on the stock in a research note on Monday, August 10th. Morgan Stanley cut shares of Kennametal from an "equal weight" rating to an "underweight" rating and reduced their target price for the stock from $31.00 to $27.00 in a research report on Monday, August 10th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Kennametal from $40.00 to $34.00 and set an "underweight" rating for the company in a research note on Monday, July 13th.

Kennametal Trading Down 0.1%

NYSE:KMT opened at $29.26 on Wednesday. The business's 50-day moving average is $33.58 and its two-hundred day moving average is $36.01. 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 12 month low of $20.35 and a 12 month high of $43.81. The firm has a market capitalization of $2.23 billion, a PE ratio of 6.65, a price-to-earnings-growth ratio of 0.29 and a beta of 1.36.

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

Kennametal Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th were issued a $0.20 dividend. The ex-dividend date was Tuesday, August 11th. This represents a $0.80 dividend on an annualized basis and a yield of 2.7%. Kennametal's payout ratio is currently 18.18%.

Insider Buying and Selling at Kennametal

In other news, VP Judith L. Bacchus sold 5,488 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $35.94, for a total transaction of $197,238.72. Following the completion of the sale, the vice president directly owned 4,554 shares in the company, valued at $163,670.76. This trade represents a 54.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Carlonda R. Reilly sold 12,013 shares of Kennametal stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $33.12, for a total value of $397,870.56. Following the sale, the vice president directly owned 25,143 shares in the company, valued at approximately $832,736.16. The trade was a 32.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 47,000 shares of company stock valued at $1,583,326 in the last ninety days. Insiders own 1.43% of the company's stock.

Institutional Investors Weigh In On Kennametal

Hedge funds have recently bought and sold shares of the business. Baron Wealth Management LLC lifted its stake in shares of Kennametal by 3.8% in the 1st quarter. Baron Wealth Management LLC now owns 11,972 shares of the industrial products company's stock worth $433,000 after acquiring an additional 439 shares during the period. ProShare Advisors LLC increased its stake in shares of Kennametal by 3.1% during the fourth quarter. ProShare Advisors LLC now owns 14,799 shares of the industrial products company's stock valued at $420,000 after acquiring an additional 450 shares during the period. ARK Investment Management LLC increased its stake in shares of Kennametal by 16.6% during the fourth quarter. ARK Investment Management LLC now owns 3,210 shares of the industrial products company's stock valued at $91,000 after acquiring an additional 457 shares during the period. Smartleaf Asset Management LLC raised its holdings in Kennametal by 21.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 3,088 shares of the industrial products company's stock worth $88,000 after purchasing an additional 551 shares in the last quarter. Finally, New Age Alpha Advisors LLC raised its holdings in Kennametal by 5.4% during the fourth quarter. New Age Alpha Advisors LLC now owns 10,977 shares of the industrial products company's stock worth $312,000 after purchasing an additional 567 shares in the last quarter.

Kennametal Company Profile

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company's product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.

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