Bridgeway Capital Management LLC Trims Stake in Kennametal Inc. $KMT

Key Points

• Bridgeway Capital Management cut its Kennametal stake by 7.3% in the fourth quarter, though it still held 655,896 shares worth about $18.6 million at quarter-end.
• Kennametal reported stronger-than-expected fiscal Q3 results, posting $0.77 EPS and $592.6 million in revenue, both above analyst estimates, with revenue up 21.8% year over year.
• Despite the earnings beat, analyst sentiment remains cautious: the stock has a consensus “Reduce” rating with an average price target of $35.69, and insiders have also been selling shares recently.

Bridgeway Capital Management LLC reduced its holdings in shares of Kennametal Inc. (NYSE:KMT - Free Report) by 7.3% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 655,896 shares of the industrial products company's stock after selling 51,928 shares during the period. Bridgeway Capital Management LLC owned about 0.86% of Kennametal worth $18,634,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of KMT. Kohmann Bosshard Financial Services LLC bought a new position in shares of Kennametal during the fourth quarter worth $28,000. Danske Bank A S bought a new position in Kennametal during the fourth quarter valued at $31,000. Headlands Technologies LLC lifted its holdings in shares of Kennametal by 80.7% in the 2nd quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company's stock worth $35,000 after acquiring an additional 682 shares during the last quarter. Smartleaf Asset Management LLC lifted its holdings in shares of Kennametal by 142.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company's stock worth $48,000 after acquiring an additional 1,228 shares during the last quarter. Finally, Hantz Financial Services Inc. lifted its holdings in shares of Kennametal by 99.4% in the 4th quarter. Hantz Financial Services Inc. now owns 2,738 shares of the industrial products company's stock worth $78,000 after acquiring an additional 1,365 shares during the last quarter.

Kennametal Stock Performance

KMT opened at $36.44 on Thursday. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.38 and a quick ratio of 0.99. The firm has a fifty day moving average price of $36.54 and a 200 day moving average price of $35.09. Kennametal Inc. has a 1 year low of $17.62 and a 1 year high of $43.81. The stock has a market cap of $2.78 billion, a P/E ratio of 20.58, a P/E/G ratio of 0.23 and a beta of 1.37.

Kennametal (NYSE:KMT - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $0.77 EPS 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 analyst estimates of $568.03 million. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The firm's revenue was up 21.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.47 EPS. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. Equities research analysts anticipate that Kennametal Inc. will post 2.99 earnings per share for the current year.

Kennametal Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, May 26th. Stockholders of record on Tuesday, May 12th were issued a dividend of $0.20 per share. The ex-dividend date of this dividend was Tuesday, May 12th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.2%. Kennametal's dividend payout ratio is presently 45.20%.

Analysts Set New Price Targets

Several research analysts recently commented on KMT shares. Jefferies Financial Group downgraded shares of Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price target on the stock. in a research note on Thursday, May 7th. Zacks Research downgraded shares of Kennametal from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 11th. DA Davidson began coverage on shares of Kennametal in a research report on Tuesday. They issued a "neutral" rating and a $34.00 price objective on the stock. JPMorgan Chase & Co. lifted their price objective on shares of Kennametal from $37.00 to $40.00 and gave the stock an "underweight" rating in a research report on Thursday, May 7th. Finally, Weiss Ratings lowered Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 20th. Seven equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $35.69.

Insider Transactions at Kennametal

In related news, VP Carlonda R. Reilly sold 12,013 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total transaction of $397,870.56. Following the completion of the sale, the vice president directly owned 25,143 shares in the company, valued at approximately $832,736.16. This trade represents a 32.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Judith L. Bacchus sold 5,488 shares of the firm's stock in a transaction dated 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 approximately $163,670.76. The trade was a 54.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 47,000 shares of company stock valued at $1,583,326 over the last 90 days. 1.43% of the stock is currently owned by corporate insiders.

Kennametal 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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