Engineers Gate Manager LP Purchases 75,990 Shares of Kennametal Inc. $KMT

Key Points

• Engineers Gate Manager LP increased its Kennametal stake by 166.2%, purchasing 75,990 additional shares and bringing its total holdings to 121,709 shares, valued at approximately $4.3 million.
• Analyst sentiment remains cautious: five analysts rate KMT a Hold and four rate it a Sell, producing an average “Reduce” rating and a consensus price target of $34.07 versus the reported share price of $29.45.
• Kennametal exceeded quarterly earnings and revenue expectations, reporting $2.96 in EPS and $736.6 million in revenue, while maintaining a quarterly dividend of $0.20 per share. CEO Sanjay Chowbey also bought 7,000 shares, despite a recent sale by a company vice president.

Engineers Gate Manager LP increased its holdings in shares of Kennametal Inc. (NYSE:KMT - Free Report) by 166.2% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 121,709 shares of the industrial products company's stock after buying an additional 75,990 shares during the quarter. Engineers Gate Manager LP owned 0.16% of Kennametal worth $4,266,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in KMT. BlackRock Inc. acquired a new stake in shares of Kennametal during the second quarter worth about $440,446,000. California State Teachers Retirement System increased its stake in Kennametal by 3,301.2% during the 2nd quarter. California State Teachers Retirement System now owns 2,927,832 shares of the industrial products company's stock worth $102,621,000 after purchasing an additional 2,841,750 shares in the last quarter. William Blair Investment Management LLC acquired a new stake in Kennametal during the 2nd quarter worth approximately $69,614,000. Medina Value Partners LLC bought a new position in Kennametal in the second quarter valued at approximately $43,007,296. Finally, NFJ Investment Group LLC acquired a new position in shares of Kennametal in the second quarter valued at approximately $36,202,000.

Analyst Ratings Changes

KMT has been the topic of several research reports. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Kennametal in a research report on Monday, August 17th. JPMorgan Chase & Co. cut their price target on Kennametal from $40.00 to $34.00 and set an "underweight" rating on the stock in a report on Monday, July 13th. UBS Group decreased their price objective on Kennametal from $39.00 to $35.00 and set a "neutral" rating for the company in a report on Monday, August 10th. Barclays lowered Kennametal from an "equal weight" rating to an "underweight" rating and dropped their target price for the company from $40.00 to $33.00 in a research report on Wednesday, May 27th. Finally, DA Davidson lowered their price objective on shares of Kennametal from $34.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, August 11th. Five analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $34.07.

Kennametal Stock Performance

Shares of KMT stock opened at $29.45 on Friday. The stock has a market cap of $2.24 billion, a P/E ratio of 6.69, a P/E/G ratio of 0.29 and a beta of 1.34. The company has a fifty day moving average price of $32.19 and a two-hundred day moving average price of $35.15. Kennametal Inc. has a one year low of $20.35 and a one year high of $43.81. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.62 and a quick ratio of 0.98.

Kennametal (NYSE:KMT - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $2.96 earnings per share for the quarter, topping analysts' consensus estimates of $2.31 by $0.65. Kennametal had a return on equity of 24.83% and a net margin of 14.53%.The firm had revenue of $736.61 million for the quarter, compared to the consensus estimate of $725.74 million. During the same quarter in the previous year, the business earned $0.34 earnings per share. The business's revenue was up 42.6% compared to the same quarter last year. 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, equities analysts predict that Kennametal Inc. will post 4.82 EPS for the current year.

Kennametal Announces Dividend

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

Insiders Place Their Bets

In related news, VP Judith L. Bacchus sold 9,676 shares of Kennametal stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $30.29, for a total transaction of $293,086.04. Following the completion of the sale, the vice president owned 15,721 shares of the company's stock, valued at approximately $476,189.09. The trade was a 38.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Sanjay Chowbey purchased 7,000 shares of the firm's stock in a transaction that occurred on Thursday, September 10th. The stock was bought at an average price of $29.10 per share, for a total transaction of $203,700.00. Following the purchase, the chief executive officer owned 246,839 shares in the company, valued at $7,183,014.90. The trade was a 2.92% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 1.43% of the company's stock.

Kennametal Profile

Kennametal Inc NYSE: KMT is an industrial technology company that develops and manufactures tooling, engineered components and wear-resistant solutions for demanding applications. Its products are designed to help customers cut, shape, drill and protect materials used in manufacturing, transportation, energy, infrastructure and other industrial markets.

The company's offerings include carbide and ceramic cutting tools, indexable inserts, solid carbide tooling, toolholding systems and related metal-cutting products.

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