Graham Capital Management L.P. Buys Shares of 50,862 Kennametal Inc. $KMT

Key Points

• Graham Capital Management L.P. acquired 50,862 shares of Kennametal Inc. valued at approximately $1,083,000, representing a new position for the fund during the first quarter.
• Several institutional investors increased their positions in Kennametal, with notable boosts from SummerHaven Investment Management LLC and US Bancorp DE of 1.8% and 93.4%, respectively.
• The latest quarterly earnings report indicated a missed EPS estimate at $0.34, compared to the consensus of $0.40, alongside a revenue decline of 4.9% year-over-year.

Graham Capital Management L.P. bought a new stake in Kennametal Inc. (NYSE:KMT - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 50,862 shares of the industrial products company's stock, valued at approximately $1,083,000. Graham Capital Management L.P. owned 0.07% of Kennametal at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in the company. Cooper Haims Advisors LLC purchased a new stake in shares of Kennametal in the first quarter valued at about $7,453,000. American Century Companies Inc. boosted its position in Kennametal by 9.2% during the 1st quarter. American Century Companies Inc. now owns 2,778,368 shares of the industrial products company's stock worth $59,179,000 after acquiring an additional 234,395 shares during the period. Nuveen LLC acquired a new stake in shares of Kennametal in the first quarter valued at $3,949,000. Victory Capital Management Inc. raised its position in Kennametal by 6.0% during the first quarter. Victory Capital Management Inc. now owns 3,218,394 shares of the industrial products company's stock valued at $68,552,000 after buying an additional 181,035 shares during the period. Finally, Northern Trust Corp boosted its stake in shares of Kennametal by 8.4% during the 1st quarter. Northern Trust Corp now owns 1,077,284 shares of the industrial products company's stock worth $22,946,000 after acquiring an additional 83,568 shares in the last quarter.

Kennametal Stock Performance

Shares of NYSE KMT traded down $0.53 during midday trading on Monday, reaching $21.43. 395,233 shares of the company traded hands, compared to its average volume of 1,069,587. 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 stock has a 50-day moving average price of $22.99 and a 200 day moving average price of $21.71. The company has a market cap of $1.63 billion, a price-to-earnings ratio of 17.81, a PEG ratio of 3.86 and a beta of 1.44.

Kennametal (NYSE:KMT - Get Free Report) last announced its quarterly 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). Kennametal had a net margin of 4.73% and a return on equity of 8.09%. The company had revenue of $516.45 million during the quarter, compared to the consensus estimate of $527.52 million. During the same quarter last year, the company earned $0.49 earnings per share. The business's revenue was down 4.9% on a year-over-year basis. Sell-side analysts anticipate that Kennametal Inc. will post 1.17 earnings per share for the current fiscal year.

Kennametal Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 26th. Investors of record on Tuesday, August 12th were given 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 dividend yield of 3.7%. Kennametal's payout ratio is presently 66.67%.

Wall Street Analyst Weigh In

Several research firms have weighed in on KMT. JPMorgan Chase & Co. reduced their target price on Kennametal from $23.00 to $20.00 and set an "underweight" rating on the stock in a report on Thursday, August 7th. Morgan Stanley increased their price objective on Kennametal from $20.00 to $21.00 and gave the stock an "equal weight" rating in a research report on Monday, May 12th. Loop Capital restated a "hold" rating and issued a $24.00 price objective (up from $21.00) on shares of Kennametal in a report on Wednesday, June 25th. UBS Group upgraded shares of Kennametal from a "sell" rating to a "neutral" rating and boosted their price target for the stock from $19.00 to $21.00 in a research note on Friday, August 15th. Finally, Wall Street Zen raised shares of Kennametal from a "hold" rating to a "buy" rating in a research report on Friday, May 16th. Five investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus target price 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.