Capital Fund Management S.A. Makes New $517,000 Investment in Kennametal Inc. $KMT

Key Points

• Capital Fund Management S.A. has acquired 24,276 shares of Kennametal Inc. (NYSE: KMT), valued at approximately $517,000, indicating growing institutional interest in the company.
• Kennametal recently reported a Q2 EPS of $0.34, falling short of analysts’ expectations of $0.40, with revenues also declining by 4.9% year-over-year.
• The company announced a quarterly dividend of $0.20 per share, representing an annual yield of 3.7% and indicating a stable return for shareholders.

Capital Fund Management S.A. bought a new position in Kennametal Inc. (NYSE:KMT - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 24,276 shares of the industrial products company's stock, valued at approximately $517,000.

A number of other hedge funds also recently bought and sold shares of KMT. Curat Global LLC bought a new stake in Kennametal in the 1st quarter worth approximately $35,000. Parallel Advisors LLC lifted its position in Kennametal by 107.6% in the 1st quarter. Parallel Advisors LLC now owns 1,958 shares of the industrial products company's stock worth $42,000 after buying an additional 1,015 shares during the last quarter. US Bancorp DE lifted its position in Kennametal by 93.4% in the 1st quarter. US Bancorp DE now owns 2,145 shares of the industrial products company's stock worth $46,000 after buying an additional 1,036 shares during the last quarter. DekaBank Deutsche Girozentrale bought a new stake in Kennametal in the 1st quarter worth approximately $52,000. Finally, Bayforest Capital Ltd bought a new stake in Kennametal in the 1st quarter worth approximately $64,000.

Kennametal Trading Down 1.2%

Shares of KMT traded down $0.26 during mid-day trading on Friday, hitting $21.42. 755,866 shares of the company's stock traded hands, compared to its average volume of 1,554,757. The company has a quick ratio of 1.19, a current ratio of 2.46 and a debt-to-equity ratio of 0.45. Kennametal Inc. has a 1 year low of $17.30 and a 1 year high of $32.18. The firm has a market capitalization of $1.63 billion, a P/E ratio of 17.85, a PEG ratio of 3.77 and a beta of 1.44. The business's 50-day moving average price is $23.09 and its 200-day moving average price is $21.75.

Kennametal (NYSE:KMT - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.06). Kennametal had a net margin of 4.73% and a return on equity of 8.09%. The firm had revenue of $516.45 million for the quarter, compared to the consensus estimate of $527.52 million. During the same quarter in the prior year, the firm earned $0.49 earnings per share. The company's revenue for the quarter was down 4.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Kennametal Inc. will post 1.17 EPS for the current fiscal year.

Kennametal Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 26th. Investors of record on Tuesday, August 12th were given a dividend of $0.20 per share. The ex-dividend date was Tuesday, August 12th. This represents a $0.80 annualized dividend and a dividend yield of 3.7%. Kennametal's payout ratio is currently 66.67%.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the company. Zacks Research upgraded Kennametal to a "strong sell" rating in a research report on Monday, August 11th. Wall Street Zen raised Kennametal from a "hold" rating to a "buy" rating in a research note on Friday, May 16th. Morgan Stanley lifted their price target on Kennametal from $20.00 to $21.00 and gave the stock an "equal weight" rating in a research note on Monday, May 12th. UBS Group raised Kennametal from a "sell" rating to a "neutral" rating and lifted their price target for the stock from $19.00 to $21.00 in a research note on Friday, August 15th. Finally, Loop Capital reaffirmed a "hold" rating and issued a $24.00 price target (up from $21.00) on shares of Kennametal in a research note on Wednesday, June 25th. Five analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Kennametal currently has an average rating of "Reduce" and an average target price of $24.00.

About Kennametal

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.