Bank of New York Mellon Corp Cuts Stock Position in Kennametal Inc. $KMT

Key Points

• Bank of New York Mellon reduced its Kennametal stake by 3.2% in the first quarter, selling 31,903 shares and retaining 963,689 shares valued at approximately $34.8 million.
• Kennametal reported stronger-than-expected quarterly results, with EPS of $0.77 versus the $0.68 consensus and revenue up 21.8% year over year to $592.6 million. The company also maintains a $0.20 quarterly dividend, equivalent to a 2.3% yield.
• Analyst sentiment is cautious: recent downgrades left the stock with an average “Reduce” rating and a $35.79 target price, near its reported share price of $35.23. Company insiders have also sold 47,000 shares worth about $1.58 million over the past 90 days.

Bank of New York Mellon Corp trimmed its holdings in shares of Kennametal Inc. (NYSE:KMT - Free Report) by 3.2% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 963,689 shares of the industrial products company's stock after selling 31,903 shares during the quarter. Bank of New York Mellon Corp owned approximately 1.26% of Kennametal worth $34,818,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. OLD National Bancorp IN grew its stake in Kennametal by 3.8% in the 4th 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 during the period. Baron Wealth Management LLC raised its position in Kennametal by 3.8% during the first quarter. Baron Wealth Management LLC now owns 11,972 shares of the industrial products company's stock worth $433,000 after acquiring an additional 439 shares during the period. ProShare Advisors LLC lifted its holdings in Kennametal by 3.1% during the fourth quarter. ProShare Advisors LLC now owns 14,799 shares of the industrial products company's stock valued at $420,000 after purchasing an additional 450 shares in the last quarter. ARK Investment Management LLC lifted its holdings in Kennametal by 16.6% during the fourth 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 in the last quarter. Finally, State of Alaska Department of Revenue grew its position in shares of Kennametal by 1.2% in the fourth 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 period.

Insider Activity

In other news, VP Carlonda R. Reilly sold 12,013 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total value of $397,870.56. Following the completion of the sale, the vice president owned 25,143 shares of the company's stock, valued at $832,736.16. This represents a 32.33% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Judith L. Bacchus sold 5,488 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $35.94, for a total transaction of $197,238.72. Following the sale, the vice president owned 4,554 shares of the company's stock, valued at $163,670.76. This represents a 54.65% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 47,000 shares of company stock valued at $1,583,326 in the last 90 days. Company insiders own 1.43% of the company's stock.

Kennametal Stock Down 0.0%

NYSE KMT opened at $35.23 on Monday. Kennametal Inc. has a 52 week low of $17.62 and a 52 week high of $43.81. The company has a quick ratio of 0.99, a current ratio of 2.38 and a debt-to-equity ratio of 0.43. The business's fifty day simple moving average is $34.52 and its 200-day simple moving average is $36.22. The firm has a market cap of $2.68 billion, a PE ratio of 19.90, a P/E/G ratio of 0.61 and a beta of 1.36.

Kennametal (NYSE:KMT - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.09. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The firm had revenue of $592.59 million for the quarter, compared to analysts' expectations of $568.03 million. During the same quarter in the previous year, the company posted $0.47 EPS. The company's 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. As a group, equities analysts anticipate that Kennametal Inc. will post 3.23 earnings per share for the current year.

Kennametal Dividend Announcement

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

Wall Street Analyst Weigh In

KMT has been the subject of a number of research reports. JPMorgan Chase & Co. cut their target price 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. Jefferies Financial Group cut Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price objective on the stock. in a report on Thursday, May 7th. Zacks Research lowered Kennametal from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 14th. DA Davidson initiated coverage on Kennametal in a report on Tuesday, June 16th. They set a "neutral" rating and a $34.00 target price for the company. Finally, Barclays downgraded Kennametal from an "equal weight" rating to an "underweight" rating and decreased their target price for the company from $40.00 to $33.00 in a research report on Wednesday, May 27th. Six analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $35.79.

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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