Cubist Systematic Strategies LLC Acquires New Stake in Kennametal Inc. $KMT

Key Points

• Cubist Systematic Strategies LLC has acquired 160,171 shares of Kennametal Inc. valued at approximately $3.4 million, increasing its stake to 0.21% of the company.
• Kennametal recently reported quarterly earnings, with an EPS of $0.34, missing the expected $0.40, and a revenue decline of 4.9% year-over-year.
• The company also declared a quarterly dividend of $0.20 per share, reflecting an annualized dividend yield of 3.6%.

Cubist Systematic Strategies LLC bought a new stake in Kennametal Inc. (NYSE:KMT - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 160,171 shares of the industrial products company's stock, valued at approximately $3,412,000. Cubist Systematic Strategies LLC owned approximately 0.21% of Kennametal at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in KMT. Curat Global LLC bought a new position in Kennametal during the first quarter valued at about $35,000. Parallel Advisors LLC lifted its holdings in Kennametal by 107.6% during the 1st quarter. Parallel Advisors LLC now owns 1,958 shares of the industrial products company's stock worth $42,000 after buying an additional 1,015 shares in the last quarter. US Bancorp DE lifted its stake in shares of Kennametal by 93.4% in the 1st quarter. US Bancorp DE now owns 2,145 shares of the industrial products company's stock valued at $46,000 after purchasing an additional 1,036 shares during the period. DekaBank Deutsche Girozentrale acquired a new position in shares of Kennametal in the 1st quarter valued at $52,000. Finally, Bayforest Capital Ltd bought a new stake in shares of Kennametal in the 1st quarter valued at $64,000.

Analyst Upgrades and Downgrades

KMT has been the subject of a number of research analyst reports. Zacks Research upgraded Kennametal to a "strong sell" rating in a report on Monday, August 11th. UBS Group upgraded Kennametal from a "sell" rating to a "neutral" rating and raised their price objective for the company from $19.00 to $21.00 in a research note on Friday, August 15th. Loop Capital reaffirmed a "hold" rating and set a $24.00 target price (up previously from $21.00) on shares of Kennametal in a report on Wednesday, June 25th. Wall Street Zen upgraded Kennametal from a "hold" rating to a "buy" rating in a research report on Friday, May 16th. Finally, JPMorgan Chase & Co. decreased their target price on Kennametal from $23.00 to $20.00 and set an "underweight" rating for the company in a report on Thursday, August 7th. Five investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $24.00.

Kennametal Price Performance

Shares of NYSE KMT traded down $0.14 during midday trading on Wednesday, reaching $20.92. 250,936 shares of the stock traded hands, compared to its average volume of 1,064,752. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.46 and a quick ratio of 1.19. The stock has a market capitalization of $1.59 billion, a PE ratio of 17.44, a P/E/G ratio of 3.76 and a beta of 1.44. Kennametal Inc. has a one year low of $17.30 and a one year high of $32.18. The company's 50 day moving average is $22.91 and its 200 day moving average is $21.70.

Kennametal (NYSE:KMT - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.06). Kennametal had a net margin of 4.73% and a return on equity of 8.09%. The firm had revenue of $516.45 million for the quarter, compared to analysts' expectations of $527.52 million. During the same quarter in the prior year, the business posted $0.49 EPS. The business's quarterly revenue was down 4.9% on a year-over-year basis. On average, equities research analysts anticipate that Kennametal Inc. will post 1.17 earnings per share for the current year.

Kennametal Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, August 26th. Investors of record on Tuesday, August 12th were paid a dividend of $0.20 per share. The ex-dividend date of this dividend was Tuesday, August 12th. This represents a $0.80 annualized dividend and a yield of 3.8%. Kennametal's dividend payout ratio is presently 66.67%.

Kennametal Profile

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.