Kennametal Inc. (NYSE:KMT) Stock Has Average Price Target of $33.07

Key Points

• Analyst sentiment is cautious: Nine firms give Kennametal a consensus “Reduce” rating—four sell and five hold—with an average 12-month price target of $33.07.
• Quarterly earnings beat expectations: Kennametal reported EPS of $3.48 versus estimates of $2.65, while revenue of $768.19 million fell slightly short of forecasts; revenue rose 54.3% year over year.
• The company announced a quarterly dividend of $0.20 per share, equivalent to $0.80 annually and a 3.5% yield.

Shares of Kennametal Inc. (NYSE:KMT - Get Free Report) have earned a consensus recommendation of "Reduce" from the nine research firms that are currently covering the firm, Marketbeat reports. Four equities research analysts have rated the stock with a sell recommendation and five have issued a hold recommendation on the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $33.07.

A number of analysts recently issued reports on KMT shares. Zacks Research downgraded Kennametal from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, October 14th. Weiss Ratings cut Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, October 23rd. DA Davidson decreased their price target on Kennametal from $34.00 to $30.00 and set a "neutral" rating for the company in a research note on Tuesday, August 11th. Morgan Stanley lowered Kennametal from an "equal weight" rating to an "underweight" rating and lowered their price target for the stock from $31.00 to $27.00 in a research report on Monday, August 10th. Finally, UBS Group dropped their price objective on Kennametal from $39.00 to $35.00 and set a "neutral" rating on the stock in a research note on Monday, August 10th.

Kennametal Stock Up 0.3%

NYSE:KMT opened at $23.06 on Monday. The stock has a 50-day simple moving average of $30.10 and a 200 day simple moving average of $34.42. Kennametal has a 52-week low of $22.65 and a 52-week high of $43.81. The company has a market cap of $1.78 billion, a PE ratio of 3.04, a PEG ratio of 0.21 and a beta of 1.30. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.24 and a current ratio of 3.45.

Kennametal (NYSE:KMT - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The industrial products company reported $3.48 EPS for the quarter, topping analysts' consensus estimates of $2.65 by $0.83. Kennametal had a net margin of 22.49% and a return on equity of 38.40%. The business had revenue of $768.19 million for the quarter, compared to analyst estimates of $770.36 million. During the same quarter in the previous year, the firm posted $0.34 earnings per share. The firm's revenue for the quarter was up 54.3% on a year-over-year basis. On average, sell-side analysts expect that Kennametal will post 5.18 EPS for the current fiscal year.

Kennametal Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 23rd. Investors of record on Monday, November 9th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $0.80 annualized dividend and a dividend yield of 3.5%. Kennametal's dividend payout ratio (DPR) is currently 10.55%.

Insiders Place Their Bets

In other Kennametal news, VP Judith Bacchus sold 9,676 shares of the company's stock in a transaction 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 directly owned 15,721 shares of the company's stock, valued at approximately $476,189.09. This represents a 38.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Sanjay Chowbey purchased 7,000 shares of the company's stock in a transaction on Thursday, November 5th. The shares were purchased at an average cost of $23.62 per share, for a total transaction of $165,340.00. Following the completion of the transaction, the chief executive officer directly owned 280,957 shares of the company's stock, valued at approximately $6,636,204.34. This represents a 2.56% increase in their position. The disclosure for this purchase is available in the SEC filing. 1.65% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Kennametal

Institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. bought a new position in shares of Kennametal during the second quarter worth approximately $440,446,000. Arrowstreet Capital Limited Partnership boosted its stake in Kennametal by 15.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,298,349 shares of the industrial products company's stock valued at $83,039,000 after purchasing an additional 307,209 shares during the period. William Blair Investment Management LLC bought a new stake in Kennametal in the 2nd quarter valued at $69,614,000. Medina Value Partners LLC acquired a new position in Kennametal in the 2nd quarter valued at $43,007,296. Finally, NFJ Investment Group LLC acquired a new position in Kennametal in the 2nd quarter valued at $36,202,000.

About Kennametal

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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