Hennessy Advisors Inc. Purchases New Stake in Kennametal Inc. $KMT

Key Points

• Hennessy Advisors acquired a new 256,500-share stake in Kennametal during the second quarter, valued at approximately $8.99 million and representing about 0.34% of the company.
• Kennametal reported stronger-than-expected quarterly results, with EPS of $2.96 versus the $2.31 consensus and revenue of $736.6 million, up 42.6% year over year. The company also declared a quarterly dividend of $0.20, yielding about 2.7% annually.
• Despite the earnings beat, insider selling and cautious analyst sentiment weigh on the stock: executives sold 47,000 shares over 90 days, while analysts maintain a consensus “Reduce” rating with an average price target of $34.07.

Hennessy Advisors Inc. acquired a new stake in Kennametal Inc. (NYSE:KMT - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 256,500 shares of the industrial products company's stock, valued at approximately $8,990,000. Hennessy Advisors Inc. owned about 0.34% of Kennametal as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Royal Bank of Canada lifted its stake in Kennametal by 17.7% during the first quarter. Royal Bank of Canada now owns 30,474 shares of the industrial products company's stock worth $649,000 after purchasing an additional 4,578 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Kennametal by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 46,307 shares of the industrial products company's stock valued at $986,000 after buying an additional 2,013 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Kennametal by 13.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 240,556 shares of the industrial products company's stock worth $5,124,000 after acquiring an additional 28,020 shares during the period. Jane Street Group LLC lifted its holdings in Kennametal by 39.3% in the first quarter. Jane Street Group LLC now owns 229,903 shares of the industrial products company's stock worth $4,897,000 after acquiring an additional 64,907 shares during the last quarter. Finally, Norges Bank acquired a new position in Kennametal in the second quarter valued at approximately $585,000.

Insider Transactions at Kennametal

In other Kennametal news, VP Carlonda R. Reilly sold 12,013 shares of the company's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $33.12, for a total value of $397,870.56. Following the transaction, the vice president directly owned 25,143 shares of the company's stock, valued at $832,736.16. This represents a 32.33% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Sagar A. Patel sold 29,499 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $33.50, for a total transaction of $988,216.50. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 47,000 shares of company stock valued at $1,583,326. 1.43% of the stock is owned by insiders.

Kennametal Stock Down 2.3%

NYSE KMT opened at $29.52 on Friday. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.62 and a quick ratio of 0.98. The company's 50 day simple moving average is $33.19 and its 200 day simple moving average is $35.84. Kennametal Inc. has a 12 month low of $20.35 and a 12 month high of $43.81. The company has a market capitalization of $2.25 billion, a P/E ratio of 6.71, a PEG ratio of 0.29 and a beta of 1.36.

Kennametal (NYSE:KMT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $2.96 earnings per share for the quarter, beating analysts' consensus estimates of $2.31 by $0.65. The business had revenue of $736.61 million for the quarter, compared to the consensus estimate of $725.74 million. Kennametal had a return on equity of 24.83% and a net margin of 14.53%.Kennametal's revenue for the quarter was up 42.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.34 earnings per share. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. Equities research analysts expect that Kennametal Inc. will post 4.82 earnings per share for the current fiscal year.

Kennametal Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 11th were paid a $0.20 dividend. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.7%. Kennametal's dividend payout ratio is 18.18%.

Analysts Set New Price Targets

Several research firms have recently commented on KMT. Barclays lowered Kennametal from an "equal weight" rating to an "underweight" rating and lowered their target price for the company from $40.00 to $33.00 in a report on Wednesday, May 27th. Zacks Research downgraded Kennametal from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 14th. Morgan Stanley downgraded shares of Kennametal from an "equal weight" rating to an "underweight" rating and reduced their price objective for the stock from $31.00 to $27.00 in a report on Monday, August 10th. DA Davidson lowered their target price on shares of Kennametal from $34.00 to $30.00 and set a "neutral" rating on the stock in a research note on Tuesday, August 11th. Finally, UBS Group dropped their price target on shares of Kennametal from $39.00 to $35.00 and set a "neutral" rating on the stock in a research report on Monday, August 10th. Five analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, Kennametal presently has a consensus rating of "Reduce" and an average target price of $34.07.

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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