Kennametal Inc. (NYSE:KMT) Stock Now Rated "Reduce" by Wall Street Brokerages

Key Points

• Kennametal has a consensus “Reduce” rating from nine analysts, with four sell, three hold, one buy, and one strong-buy recommendation. The average 12-month price target is $33.50.
• The stock opened at $30.90, near its 50-day average of $30.65 and below its 200-day average of $33.95. Recent analysts including JPMorgan, DA Davidson, and UBS lowered their price targets.
• Kennametal reported quarterly earnings of $2.96 per share, beating estimates of $2.31, while revenue rose 42.6% year over year to $736.61 million. The company also maintains a quarterly dividend of $0.20 per share, yielding about 2.6% annually.

Kennametal Inc. (NYSE:KMT - Get Free Report) has received a consensus rating of "Reduce" from the nine ratings firms that are currently covering the stock, MarketBeat.com reports. Four research analysts have rated the stock with a sell recommendation, three have assigned a hold recommendation, one has assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year target price among brokers that have covered the stock in the last year is $33.50.

Several equities research analysts have recently issued reports on KMT shares. Weiss Ratings raised shares of Kennametal from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. DA Davidson dropped 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 target on Kennametal from $34.00 to $30.00 and set an "underweight" rating on the stock in a research note on Thursday, October 8th. UBS Group cut their price target on Kennametal from $39.00 to $35.00 and set a "neutral" rating on the stock in a research note on Monday, August 10th. Finally, Zacks Research raised Kennametal from a "hold" rating to a "strong-buy" rating in a report on Tuesday, September 15th.

Kennametal Stock Down 1.4%

KMT stock opened at $30.90 on Thursday. The company's 50 day moving average price is $30.65 and its 200 day moving average price is $33.95. 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 has a fifty-two week low of $21.70 and a fifty-two week high of $43.81. The firm has a market capitalization of $2.36 billion, a price-to-earnings ratio of 7.02, a PEG ratio of 0.30 and a beta of 1.33.

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, beating the consensus estimate of $2.31 by $0.65. Kennametal had a net margin of 14.53% and a return on equity of 24.83%. The firm had revenue of $736.61 million for the quarter, compared to analysts' expectations of $725.74 million. During the same quarter last year, the company earned $0.34 earnings per share. The firm'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. On average, equities research analysts anticipate that Kennametal will post 4.92 EPS for the current fiscal year.

Kennametal Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 11th were given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend was Tuesday, August 11th. Kennametal's dividend payout ratio (DPR) is 18.18%.

Insider Activity

In related 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 completion of the sale, the vice president owned 15,721 shares in the company, valued at $476,189.09. The trade was a 38.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Sanjay Chowbey purchased 7,000 shares of the stock in a transaction that occurred on Thursday, September 10th. The stock was acquired at an average cost of $29.10 per share, with a total value of $203,700.00. Following the completion of the acquisition, the chief executive officer directly owned 246,839 shares of the company's stock, valued at $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. 1.65% of the stock is currently owned by company insiders.

Institutional Trading of Kennametal

Institutional investors have recently modified their holdings of the stock. Baron Wealth Management LLC grew its position in shares of Kennametal by 3.8% during the first 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 last quarter. Allworth Financial LP acquired a new position in shares of Kennametal in the 2nd quarter valued at $25,000. Cetera Investment Advisers increased its holdings in shares of Kennametal by 9.4% in the 1st quarter. Cetera Investment Advisers now owns 8,376 shares of the industrial products company's stock valued at $303,000 after acquiring an additional 723 shares during the period. Rockefeller Capital Management L.P. increased its holdings in shares of Kennametal by 3,600.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company's stock valued at $28,000 after acquiring an additional 972 shares during the period. Finally, Nykredit A S purchased a new stake in Kennametal in the 2nd quarter valued at $37,000.

Kennametal Company Profile

Kennametal Inc NYSE: KMT is an industrial technology company that develops and manufactures tooling, engineered components, and wear-resistant solutions. Its products are designed to help customers machine, shape, and protect materials used in demanding industrial applications.

The company's offerings include cutting tools and tooling systems for metalworking, as well as engineered components, advanced materials, and surface technologies intended to improve durability and performance.

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