BlackRock Inc. Takes Position in Kennametal Inc. $KMT

Key Points

• BlackRock acquired 12.57 million Kennametal shares worth approximately $440.4 million, giving it a 16.49% stake. Several other institutional investors also initiated positions during the second quarter.
• Analysts remain cautious: five rate Kennametal “Hold” and four rate it “Sell,” with an average rating of “Reduce” and a $34.07 price target. Recent firms lowered targets and Morgan Stanley downgraded the stock to “Underweight.”
• Kennametal exceeded quarterly earnings and revenue expectations, reporting $2.96 EPS and $736.6 million in revenue, up 42.6% year over year. The company also maintained a quarterly dividend of $0.20 per share, yielding about 2.7%.

BlackRock Inc. acquired a new stake in Kennametal Inc. (NYSE:KMT - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 12,566,208 shares of the industrial products company's stock, valued at approximately $440,446,000. BlackRock Inc. owned about 16.49% of Kennametal as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also recently added to or reduced their stakes in KMT. Deutsche Bank AG purchased a new stake in Kennametal in the second quarter valued at $9,166,000. Bank of New York Mellon Corp purchased a new position in shares of Kennametal during the 2nd quarter worth $33,949,000. State of Wyoming purchased a new position in shares of Kennametal during the 2nd quarter worth $1,027,000. GSA Capital Partners LLP acquired a new stake in shares of Kennametal during the 2nd quarter worth about $1,187,000. Finally, Summit Global Investments acquired a new stake in shares of Kennametal during the 2nd quarter worth about $1,434,000.

Insiders Place Their Bets

In other Kennametal news, VP Judith L. Bacchus sold 5,488 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $35.94, for a total value of $197,238.72. Following the completion of the transaction, the vice president owned 4,554 shares of the company's stock, valued at $163,670.76. This trade represents a 54.65% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Sagar A. Patel sold 29,499 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $33.50, for a total transaction of $988,216.50. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 47,000 shares of company stock worth $1,583,326 in the last ninety days. 1.43% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. UBS Group decreased their target price on shares of Kennametal from $39.00 to $35.00 and set a "neutral" rating on the stock in a research report on Monday, August 10th. Morgan Stanley downgraded shares of Kennametal from an "equal weight" rating to an "underweight" rating and reduced their price target for the company from $31.00 to $27.00 in a research note on Monday, August 10th. Weiss Ratings restated a "hold (c+)" rating on shares of Kennametal in a report on Monday, August 17th. 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 report on Tuesday, August 11th. Finally, JPMorgan Chase & Co. cut their target price on Kennametal from $40.00 to $34.00 and set an "underweight" rating on the stock in a research report on Monday, July 13th. Five analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $34.07.

Kennametal Stock Performance

NYSE KMT opened at $29.26 on Wednesday. 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 company has a market cap of $2.23 billion, a P/E ratio of 6.65, a P/E/G ratio of 0.29 and a beta of 1.36. The stock has a 50-day moving average of $33.58 and a two-hundred day moving average of $36.01. Kennametal Inc. has a 1-year low of $20.35 and a 1-year high of $43.81.

Kennametal (NYSE:KMT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $2.96 earnings per share (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 business had revenue of $736.61 million for the quarter, compared to analysts' expectations of $725.74 million. During the same quarter in the prior year, the company earned $0.34 earnings per share. 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. As a group, analysts anticipate that Kennametal Inc. will post 4.82 EPS for the current year.

Kennametal Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, August 11th were paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Tuesday, August 11th. Kennametal's dividend payout ratio is presently 18.18%.

Kennametal Company 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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