Bank of America Corp DE Takes $32.64 Million Position in Kennametal Inc. $KMT

Key Points

• Bank of America acquired 931,238 Kennametal shares worth approximately $32.64 million, representing about 1.22% of the company. Other institutions, including BlackRock and William Blair, also established or increased positions.
• Kennametal reported quarterly EPS of $2.96, beating estimates of $2.31, while revenue rose 42.6% year over year to $736.61 million. The company also declared a quarterly dividend of $0.20 per share, yielding about 2.7% annually.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with four Holds and four Sells versus one Strong Buy, and an average price target of $34.07.

Bank of America Corp DE purchased a new stake in Kennametal Inc. (NYSE:KMT - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 931,238 shares of the industrial products company's stock, valued at approximately $32,640,000. Bank of America Corp DE owned approximately 1.22% of Kennametal at the end of the most recent reporting period.

Several other institutional investors have also recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in Kennametal during the 2nd quarter worth about $440,446,000. Arrowstreet Capital Limited Partnership lifted its position in Kennametal by 15.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,298,349 shares of the industrial products company's stock valued at $83,039,000 after purchasing an additional 307,209 shares during the period. William Blair Investment Management LLC bought a new position in shares of Kennametal in the 2nd quarter valued at about $69,614,000. Medina Value Partners LLC bought a new position in shares of Kennametal in the 2nd quarter valued at about $43,007,296. Finally, NFJ Investment Group LLC acquired a new stake in shares of Kennametal during the 2nd quarter worth approximately $36,202,000.

Kennametal Trading Up 0.6%

NYSE KMT opened at $29.64 on Wednesday. The firm has a market cap of $2.26 billion, a P/E ratio of 6.74, a P/E/G ratio of 0.29 and a beta of 1.34. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.62 and a quick ratio of 0.98. The stock's 50-day moving average is $31.63 and its 200-day moving average is $34.58. Kennametal Inc. has a one year low of $20.35 and a one year high of $43.81.

Kennametal (NYSE:KMT - Get Free Report) last announced its earnings results on Wednesday, August 5th. The industrial products company reported $2.96 EPS for the quarter, topping 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 the consensus estimate of $725.74 million. During the same period last year, the company posted $0.34 EPS. The business's quarterly revenue was up 42.6% on a year-over-year basis. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. Sell-side analysts anticipate that Kennametal Inc. will post 4.82 earnings per share for the current fiscal year.

Kennametal Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 11th were issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Tuesday, August 11th. Kennametal's payout ratio is 18.18%.

Insider Transactions at Kennametal

In other news, CEO Sanjay Chowbey bought 7,000 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The shares were acquired at an average price of $29.10 per share, with a total value of $203,700.00. Following the transaction, the chief executive officer owned 246,839 shares in the company, valued at $7,183,014.90. This represents a 2.92% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Judith Bacchus sold 9,676 shares of the business's stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $30.29, for a total value 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 position. The disclosure for this sale is available in the SEC filing. Insiders own 1.65% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on KMT shares. JPMorgan Chase & Co. dropped their price target on shares of Kennametal from $40.00 to $34.00 and set an "underweight" rating for the company in a research note on Monday, July 13th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Kennametal in a research note on Monday, August 17th. Barclays lowered shares of Kennametal from an "equal weight" rating to an "underweight" rating and lowered their target price for the stock from $40.00 to $33.00 in a report on Wednesday, May 27th. DA Davidson dropped their target price on shares of Kennametal from $34.00 to $30.00 and set a "neutral" rating for the company in a research report on Tuesday, August 11th. Finally, 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. One research analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and an average price target of $34.07.

Kennametal Company Profile

Kennametal Inc NYSE: KMT is an industrial technology company that develops and manufactures tooling, engineered components and wear-resistant solutions for demanding applications. Its products are designed to help customers cut, shape, drill and protect materials used in manufacturing, transportation, energy, infrastructure and other industrial markets.

The company's offerings include carbide and ceramic cutting tools, indexable inserts, solid carbide tooling, toolholding systems and related metal-cutting products.

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