Advisors Preferred LLC Purchases New Holdings in Kennametal Inc. $KMT

Key Points

• Advisors Preferred LLC opened a new position in Kennametal during the first quarter, buying 89,919 shares worth about $3.25 million and representing roughly 0.12% of the company.
• Analysts remain cautious on the stock: JPMorgan, Jefferies, DA Davidson and others have issued weaker views, with MarketBeat showing a consensus rating of “Reduce” and an average price target of $36.50.
• Kennametal reported stronger-than-expected quarterly results, with EPS of $0.77 on revenue of $592.6 million, while also paying a $0.20 quarterly dividend that works out to a 2.3% yield.

Advisors Preferred LLC acquired a new position in shares of Kennametal Inc. (NYSE:KMT - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 89,919 shares of the industrial products company's stock, valued at approximately $3,249,000. Advisors Preferred LLC owned approximately 0.12% of Kennametal at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. OLD National Bancorp IN increased its holdings in shares of Kennametal by 3.8% during the fourth quarter. OLD National Bancorp IN now owns 10,226 shares of the industrial products company's stock valued at $291,000 after acquiring an additional 377 shares in the last quarter. Baron Wealth Management LLC boosted its stake in 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 purchasing an additional 439 shares in the last quarter. ProShare Advisors LLC boosted its stake in Kennametal by 3.1% in the 4th quarter. ProShare Advisors LLC now owns 14,799 shares of the industrial products company's stock worth $420,000 after purchasing an additional 450 shares in the last quarter. ARK Investment Management LLC grew its position in Kennametal by 16.6% during the 4th quarter. ARK Investment Management LLC now owns 3,210 shares of the industrial products company's stock valued at $91,000 after purchasing an additional 457 shares during the last quarter. Finally, State of Alaska Department of Revenue grew its position in Kennametal by 1.2% during the 4th quarter. State of Alaska Department of Revenue now owns 42,796 shares of the industrial products company's stock valued at $1,215,000 after purchasing an additional 492 shares during the last quarter.

Analyst Ratings Changes

Several research analysts have issued reports on the stock. 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 report on Monday. Weiss Ratings cut shares of Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 20th. Jefferies Financial Group downgraded shares of Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price target for the company. in a research report on Thursday, May 7th. Zacks Research upgraded shares of Kennametal from a "hold" rating to a "strong-buy" rating in a report on Monday, July 6th. Finally, DA Davidson started coverage on Kennametal in a research report on Tuesday, June 16th. They issued a "neutral" rating and a $34.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, Kennametal has a consensus rating of "Reduce" and a consensus price target of $36.50.

Insider Buying and Selling at Kennametal

In other news, Director Sagar A. Patel sold 29,499 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $33.50, for a total value of $988,216.50. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Judith L. Bacchus sold 5,488 shares of Kennametal stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $35.94, for a total value of $197,238.72. Following the transaction, the vice president directly owned 4,554 shares in the company, valued at approximately $163,670.76. The trade was a 54.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 47,000 shares of company stock valued at $1,583,326. Insiders own 1.43% of the company's stock.

Kennametal Trading Up 2.0%

Shares of KMT stock opened at $34.35 on Wednesday. Kennametal Inc. has a 12-month low of $17.62 and a 12-month high of $43.81. The company has a current ratio of 2.38, a quick ratio of 0.99 and a debt-to-equity ratio of 0.43. The firm's 50 day moving average is $34.96 and its 200 day moving average is $35.89. The stock has a market capitalization of $2.62 billion, a P/E ratio of 19.40, a P/E/G ratio of 0.22 and a beta of 1.36.

Kennametal (NYSE:KMT - Get Free Report) last announced its earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share for the quarter, beating analysts' consensus estimates of $0.68 by $0.09. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The business had revenue of $592.59 million during the quarter, compared to analyst estimates of $568.03 million. During the same period in the previous year, the business earned $0.47 EPS. The company's quarterly revenue was up 21.8% compared to the same quarter last year. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. Research analysts expect that Kennametal Inc. will post 3.23 earnings per share for the current year.

Kennametal Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, May 26th. Shareholders of record on Tuesday, May 12th were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Tuesday, May 12th. Kennametal's dividend payout ratio is currently 45.20%.

Kennametal 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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