Azarias Capital Management L.P. Lowers Stock Position in Kennametal Inc. $KMT

Key Points

• Azarias Capital Management L.P. cut its stake in Kennametal by 41.2% in Q4, selling 150,069 shares and retaining 214,288 shares worth about $6.09 million (≈0.28% of the company), making KMT its 13th largest holding.
• Kennametal beat Q4 expectations with EPS of $0.47 versus $0.35 estimated and revenue of $529.5M (+9.9% YoY), and issued guidance of $0.50–$0.60 for Q3 2026 and $2.05–$2.45 for FY2026.
• Analysts are mixed: the consensus rating is Hold with an average price target of $34.67, although several firms raised targets into the mid‑$30s/low‑$40s, while the stock trades near $38.86, close to its 52‑week high of $42.03.

Azarias Capital Management L.P. lowered its position in Kennametal Inc. (NYSE:KMT - Free Report) by 41.2% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 214,288 shares of the industrial products company's stock after selling 150,069 shares during the period. Kennametal comprises about 2.7% of Azarias Capital Management L.P.'s portfolio, making the stock its 13th largest position. Azarias Capital Management L.P. owned about 0.28% of Kennametal worth $6,088,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Baron Wealth Management LLC increased its holdings in Kennametal by 19.0% during the fourth quarter. Baron Wealth Management LLC now owns 11,533 shares of the industrial products company's stock worth $328,000 after buying an additional 1,840 shares during the last quarter. Petros Family Wealth LLC purchased a new stake in Kennametal during the fourth quarter worth about $226,000. SG Americas Securities LLC increased its holdings in Kennametal by 3,273.8% during the fourth quarter. SG Americas Securities LLC now owns 274,260 shares of the industrial products company's stock worth $7,792,000 after buying an additional 266,131 shares during the last quarter. Wealth Enhancement Advisory Services LLC purchased a new stake in Kennametal during the fourth quarter worth about $353,000. Finally, Hudson Bay Capital Management LP purchased a new stake in Kennametal during the third quarter worth about $304,000.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on KMT shares. The Goldman Sachs Group set a $32.00 price objective on shares of Kennametal in a report on Friday, February 6th. Weiss Ratings upgraded shares of Kennametal from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, February 24th. Barclays increased their target price on shares of Kennametal from $28.00 to $40.00 and gave the stock an "equal weight" rating in a research report on Monday, February 9th. Morgan Stanley increased their target price on shares of Kennametal from $29.00 to $36.00 and gave the stock an "equal weight" rating in a research report on Tuesday, February 10th. Finally, UBS Group increased their target price on shares of Kennametal from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Thursday, February 5th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $34.67.

Kennametal Stock Down 0.6%

Shares of NYSE KMT opened at $38.86 on Friday. The company has a quick ratio of 1.14, a current ratio of 2.55 and a debt-to-equity ratio of 0.44. Kennametal Inc. has a 52 week low of $17.62 and a 52 week high of $42.03. The firm's fifty day moving average is $38.13 and its 200 day moving average is $30.83. The company has a market cap of $2.96 billion, a price-to-earnings ratio of 27.17, a PEG ratio of 0.64 and a beta of 1.48.

Kennametal (NYSE:KMT - Get Free Report) last issued its earnings results on Wednesday, February 4th. The industrial products company reported $0.47 EPS for the quarter, topping the consensus estimate of $0.35 by $0.12. The company had revenue of $529.53 million for the quarter, compared to the consensus estimate of $514.70 million. Kennametal had a net margin of 5.43% and a return on equity of 9.46%. The firm's revenue for the quarter was up 9.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.25 earnings per share. Kennametal has set its Q3 2026 guidance at 0.500-0.600 EPS and its FY 2026 guidance at 2.050-2.450 EPS. On average, equities research analysts expect that Kennametal Inc. will post 1.17 earnings per share for the current year.

Kennametal Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, February 24th. Shareholders of record on Tuesday, February 10th were given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend was Tuesday, February 10th. Kennametal's payout ratio is presently 55.94%.

Insiders Place Their Bets

In other Kennametal news, VP John Wayne Witt sold 5,060 shares of the business's stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $38.29, for a total transaction of $193,747.40. Following the transaction, the vice president directly owned 1,634 shares of the company's stock, valued at approximately $62,565.86. The trade was a 75.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Carlonda R. Reilly sold 13,410 shares of the company's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $36.31, for a total transaction of $486,917.10. Following the completion of the sale, the vice president directly owned 38,746 shares in the company, valued at $1,406,867.26. This represents a 25.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.43% of the stock is currently owned by insiders.

About Kennametal

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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