Hsbc Holdings PLC Has $1.92 Million Position in Kadant Inc $KAI

Key Points

• Hsbc Holdings PLC increased its stake in Kadant Inc by 64.7% during Q1, raising its total position to 5,715 shares valued at approximately $1.92 million.
• Kadant reported Q2 earnings of $2.31 per share, exceeding estimates by $0.37, despite a 7.3% year-over-year revenue decrease to $255.27 million.
• The company has initiated a stock buyback program, allowing it to repurchase up to $50 million in shares, indicating management's belief that its stock is currently undervalued.

Hsbc Holdings PLC increased its stake in Kadant Inc (NYSE:KAI - Free Report) by 64.7% during the first quarter, according to its most recent filing with the SEC. The fund owned 5,715 shares of the industrial products company's stock after buying an additional 2,245 shares during the quarter. Hsbc Holdings PLC's holdings in Kadant were worth $1,919,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in KAI. Vanguard Group Inc. grew its position in Kadant by 9.4% during the first quarter. Vanguard Group Inc. now owns 1,332,583 shares of the industrial products company's stock valued at $448,961,000 after buying an additional 114,310 shares during the period. Conestoga Capital Advisors LLC grew its position in Kadant by 97.9% during the first quarter. Conestoga Capital Advisors LLC now owns 221,209 shares of the industrial products company's stock valued at $74,528,000 after buying an additional 109,439 shares during the period. GAMMA Investing LLC grew its position in Kadant by 150,885.2% during the first quarter. GAMMA Investing LLC now owns 81,532 shares of the industrial products company's stock valued at $27,469,000 after buying an additional 81,478 shares during the period. Principal Financial Group Inc. grew its position in Kadant by 809.9% during the first quarter. Principal Financial Group Inc. now owns 64,893 shares of the industrial products company's stock valued at $21,863,000 after buying an additional 57,761 shares during the period. Finally, Public Sector Pension Investment Board bought a new position in Kadant during the first quarter valued at about $12,555,000. Institutional investors own 96.13% of the company's stock.

Kadant Trading Down 0.1%

Shares of KAI opened at $337.47 on Thursday. The business's 50-day moving average price is $329.84 and its 200-day moving average price is $331.33. Kadant Inc has a twelve month low of $281.30 and a twelve month high of $429.95. The stock has a market cap of $3.98 billion, a PE ratio of 37.58 and a beta of 1.24. The company has a quick ratio of 1.53, a current ratio of 2.38 and a debt-to-equity ratio of 0.26.

Kadant (NYSE:KAI - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The industrial products company reported $2.31 earnings per share for the quarter, beating the consensus estimate of $1.94 by $0.37. Kadant had a return on equity of 12.62% and a net margin of 10.34%.The firm had revenue of $255.27 million for the quarter, compared to analysts' expectations of $245.99 million. During the same period in the prior year, the business posted $2.81 earnings per share. The company's revenue was down 7.3% on a year-over-year basis. Kadant has set its Q3 2025 guidance at 2.130-2.230 EPS. FY 2025 guidance at 9.050-9.250 EPS. On average, equities analysts forecast that Kadant Inc will post 9.97 EPS for the current fiscal year.

Kadant declared that its Board of Directors has approved a stock buyback program on Thursday, May 15th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the industrial products company to reacquire up to 1.3% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's management believes its shares are undervalued.

Analyst Ratings Changes

KAI has been the subject of several research reports. DA Davidson increased their price target on shares of Kadant from $275.00 to $300.00 and gave the company a "neutral" rating in a research report on Monday, August 4th. Wall Street Zen raised Kadant from a "sell" rating to a "hold" rating in a report on Saturday, July 5th. Finally, Barrington Research reissued an "outperform" rating and issued a $380.00 price objective on shares of Kadant in a report on Tuesday, July 29th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $340.00.

About Kadant

Kadant Inc supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems.

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