Brandes Investment Partners LP Has $290.66 Million Position in Kennametal Inc. $KMT

Key Points

• Brandes Investment Partners trimmed its Kennametal stake by 0.9% in the fourth quarter but still owns 10.23 million shares, worth about $290.7 million, making KMT its fourth-largest holding.
• Kennametal reported a solid quarter, with EPS of $0.77 beating estimates and revenue of $592.6 million topping expectations; sales were up 21.8% year over year.
• Despite the earnings beat, sentiment remains cautious: several analysts recently downgraded the stock, and insiders also sold shares, even as Kennametal continues to pay a quarterly dividend of $0.20 per share.

Brandes Investment Partners LP lessened its stake in Kennametal Inc. (NYSE:KMT - Free Report) by 0.9% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 10,231,052 shares of the industrial products company's stock after selling 95,088 shares during the quarter. Kennametal comprises about 2.2% of Brandes Investment Partners LP's investment portfolio, making the stock its 4th largest holding. Brandes Investment Partners LP owned about 13.43% of Kennametal worth $290,664,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in KMT. Kohmann Bosshard Financial Services LLC bought a new stake in Kennametal in the fourth quarter valued at about $28,000. Hantz Financial Services Inc. increased its holdings in Kennametal by 350.2% in the third quarter. Hantz Financial Services Inc. now owns 1,373 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 1,068 shares during the last quarter. Danske Bank A S bought a new stake in Kennametal in the fourth quarter valued at about $31,000. Headlands Technologies LLC increased its holdings in Kennametal by 80.7% in the second quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company's stock valued at $35,000 after purchasing an additional 682 shares during the last quarter. Finally, Smartleaf Asset Management LLC increased its holdings in Kennametal by 142.3% in the second quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company's stock valued at $48,000 after purchasing an additional 1,228 shares during the last quarter.

Kennametal Stock Up 2.5%

Shares of Kennametal stock opened at $34.09 on Wednesday. Kennametal Inc. has a 1 year low of $17.62 and a 1 year high of $43.81. The business has a 50-day moving average of $36.62 and a two-hundred day moving average of $34.75. The company has a market capitalization of $2.60 billion, a P/E ratio of 19.26, a price-to-earnings-growth ratio of 0.21 and a beta of 1.37. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.38 and a quick ratio of 0.99.

Kennametal (NYSE:KMT - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share for the quarter, topping the consensus estimate of $0.68 by $0.09. The company had revenue of $592.59 million during the quarter, compared to analysts' expectations of $568.03 million. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.Kennametal's revenue for the quarter was up 21.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.47 earnings per share. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, equities analysts predict that Kennametal Inc. will post 2.99 EPS for the current year.

Kennametal Dividend Announcement

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

Analyst Upgrades and Downgrades

KMT has been the subject of several recent analyst reports. Jefferies Financial Group downgraded Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price target for the company. in a report on Thursday, May 7th. JPMorgan Chase & Co. increased their price target on Kennametal from $37.00 to $40.00 and gave the stock an "underweight" rating in a report on Thursday, May 7th. Zacks Research downgraded Kennametal from a "strong-buy" rating to a "hold" rating in a report on Monday, May 11th. Morgan Stanley increased their price target on Kennametal from $29.00 to $36.00 and gave the stock an "equal weight" rating in a report on Tuesday, February 10th. Finally, Barclays downgraded Kennametal from an "equal weight" rating to an "underweight" rating and lowered their price target for the stock from $40.00 to $33.00 in a report on Wednesday, May 27th. Six analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Kennametal presently has an average rating of "Reduce" and an average target price of $35.93.

Insider Activity

In other news, VP Carlonda R. Reilly sold 12,013 shares of the company's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $33.12, for a total transaction of $397,870.56. Following the completion of the transaction, the vice president directly owned 25,143 shares of the company's stock, valued at $832,736.16. This represents a 32.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Sagar A. Patel sold 29,499 shares of the company'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 SEC filing for this sale provides additional information. 1.43% of the stock is owned by corporate insiders.

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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