Tejara Capital Ltd Acquires Shares of 3,100 Kadant Inc $KAI

Key Points

• Tejara Capital Ltd acquired 3,100 shares of Kadant Inc valued at approximately $1,044,000 during the 1st quarter, as reported in a 13F filing.
• Kadant's recent quarterly earnings showed an EPS of $2.31, beating analysts' expectations, despite a 7.3% year-over-year decline in revenue.
• The company's Board of Directors has initiated a stock buyback program allowing repurchase of up to $50 million in shares, indicating management believes the stock is undervalued.

Tejara Capital Ltd acquired a new position in shares of Kadant Inc (NYSE:KAI - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 3,100 shares of the industrial products company's stock, valued at approximately $1,044,000.

A number of other hedge funds have also added to or reduced their stakes in the business. Opal Wealth Advisors LLC bought a new stake in Kadant during the first quarter worth $30,000. Optimum Investment Advisors lifted its stake in Kadant by 50.0% in the first quarter. Optimum Investment Advisors now owns 150 shares of the industrial products company's stock valued at $51,000 after purchasing an additional 50 shares during the last quarter. GAMMA Investing LLC grew its holdings in Kadant by 348.1% during the first quarter. GAMMA Investing LLC now owns 242 shares of the industrial products company's stock valued at $82,000 after purchasing an additional 188 shares during the period. Russell Investments Group Ltd. increased its position in Kadant by 982.6% in the first quarter. Russell Investments Group Ltd. now owns 249 shares of the industrial products company's stock worth $84,000 after buying an additional 226 shares during the last quarter. Finally, Asset Management One Co. Ltd. bought a new stake in shares of Kadant in the first quarter valued at $111,000. Institutional investors own 96.13% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. DA Davidson upped their price objective on shares of Kadant from $275.00 to $300.00 and gave the stock a "neutral" rating in a research report on Monday, August 4th. Wall Street Zen upgraded Kadant from a "sell" rating to a "hold" rating in a research report on Saturday, July 5th. Finally, Barrington Research reiterated an "outperform" rating and set a $380.00 price target on shares of Kadant in a research report on Tuesday, July 29th.

Kadant Price Performance

Shares of NYSE KAI traded up $4.42 during mid-day trading on Monday, reaching $344.03. The company's stock had a trading volume of 74,713 shares, compared to its average volume of 104,371. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.38 and a quick ratio of 1.53. Kadant Inc has a 52 week low of $281.30 and a 52 week high of $429.95. The stock has a fifty day moving average of $327.59 and a two-hundred day moving average of $332.35. The firm has a market capitalization of $4.05 billion, a PE ratio of 38.31 and a beta of 1.24.

Kadant (NYSE:KAI - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The industrial products company reported $2.31 EPS for the quarter, beating the consensus estimate of $1.94 by $0.37. Kadant had a return on equity of 12.62% and a net margin of 10.34%. The firm had revenue of $255.27 million for the quarter, compared to analyst estimates of $245.99 million. During the same quarter last year, the firm posted $2.81 earnings per share. The business's revenue for the quarter was down 7.3% on a year-over-year basis. As a group, sell-side analysts anticipate that Kadant Inc will post 9.97 EPS for the current fiscal year.

Kadant announced that its board has initiated a stock buyback plan on Thursday, May 15th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the industrial products company to reacquire up to 1.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

Kadant Company Profile

Kadant Inc supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems.