Cubist Systematic Strategies LLC Makes New $3.41 Million Investment 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 shares of Kennametal Inc. (NYSE:KMT - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. 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.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Mackenzie Financial Corp boosted its stake in shares of Kennametal by 557.1% during the 1st quarter. Mackenzie Financial Corp now owns 77,877 shares of the industrial products company's stock worth $1,659,000 after acquiring an additional 66,025 shares in the last quarter. Janney Montgomery Scott LLC raised its holdings in Kennametal by 17.8% in the 1st quarter. Janney Montgomery Scott LLC now owns 13,242 shares of the industrial products company's stock worth $282,000 after purchasing an additional 2,000 shares during the period. Ieq Capital LLC purchased a new position in Kennametal during the first quarter worth approximately $307,000. Nuveen LLC purchased a new position in Kennametal during the first quarter worth approximately $3,949,000. Finally, GAMMA Investing LLC grew its holdings in Kennametal by 699.1% in the first quarter. GAMMA Investing LLC now owns 11,651 shares of the industrial products company's stock valued at $248,000 after purchasing an additional 10,193 shares during the period.

Kennametal Price Performance

NYSE KMT traded up $0.16 during trading hours on Thursday, hitting $21.11. 933,844 shares of the company's stock traded hands, compared to its average volume of 878,762. The company has a market capitalization of $1.60 billion, a PE ratio of 17.59, a PEG ratio of 3.68 and a beta of 1.44. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.46 and a quick ratio of 1.19. Kennametal Inc. has a 52-week low of $17.30 and a 52-week high of $32.18. The firm's 50-day moving average is $22.77 and its 200-day moving average is $21.69.

Kennametal (NYSE:KMT - Get Free Report) last released its earnings results on Wednesday, August 6th. The industrial products company reported $0.34 earnings per share for the quarter, missing analysts' consensus estimates of $0.40 by ($0.06). The business had revenue of $516.45 million during the quarter, compared to analysts' expectations of $527.52 million. Kennametal had a return on equity of 8.09% and a net margin of 4.73%.The company's revenue for the quarter was down 4.9% compared to the same quarter last year. During the same period last year, the business earned $0.49 earnings per share. Equities analysts forecast that Kennametal Inc. will post 1.17 EPS for the current fiscal year.

Kennametal Dividend Announcement

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

Wall Street Analysts Forecast Growth

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

About Kennametal

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.