Hsbc Holdings PLC Makes New Investment in Kennametal Inc. $KMT

Key Points

• HSBC Holdings initiated a position in Kennametal during the first quarter, purchasing 30,486 shares valued at approximately $1.1 million. Several other institutional investors also modestly increased their holdings.
• Analyst sentiment remains cautious: Kennametal has an average “Reduce” rating, with six Hold ratings and three Sell ratings and an average price target of $35.79. Barclays, Morgan Stanley, and JPMorgan recently lowered their price targets.
• Kennametal exceeded quarterly earnings and revenue expectations, reporting adjusted EPS of $0.77 and revenue of $592.6 million, up 21.8% year over year. However, company insiders sold 47,000 shares worth about $1.58 million over the last quarter.

Hsbc Holdings PLC bought a new position in Kennametal Inc. (NYSE:KMT - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 30,486 shares of the industrial products company's stock, valued at approximately $1,092,000.

A number of other large investors have also made changes to their positions in KMT. OLD National Bancorp IN boosted its stake in Kennametal by 3.8% in the 4th quarter. OLD National Bancorp IN now owns 10,226 shares of the industrial products company's stock worth $291,000 after purchasing an additional 377 shares during the period. Baron Wealth Management LLC raised its stake in Kennametal by 3.8% during the 1st quarter. Baron Wealth Management LLC now owns 11,972 shares of the industrial products company's stock valued at $433,000 after purchasing an additional 439 shares during the period. ProShare Advisors LLC raised its stake in Kennametal by 3.1% during the 4th quarter. ProShare Advisors LLC now owns 14,799 shares of the industrial products company's stock valued at $420,000 after purchasing an additional 450 shares during the period. ARK Investment Management LLC lifted its holdings in shares of Kennametal by 16.6% in the fourth quarter. ARK Investment Management LLC now owns 3,210 shares of the industrial products company's stock valued at $91,000 after purchasing an additional 457 shares in the last quarter. Finally, State of Alaska Department of Revenue lifted its holdings in shares of Kennametal by 1.2% in the fourth quarter. State of Alaska Department of Revenue now owns 42,796 shares of the industrial products company's stock valued at $1,215,000 after purchasing an additional 492 shares in the last quarter.

Analyst Ratings Changes

A number of brokerages have recently weighed in on KMT. Zacks Research downgraded Kennametal from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 14th. Barclays downgraded Kennametal from an "equal weight" rating to an "underweight" rating and reduced their price objective for the stock from $40.00 to $33.00 in a research note on Wednesday, May 27th. Morgan Stanley decreased their price objective on Kennametal from $36.00 to $31.00 and set an "equal weight" rating for the company in a research report on Friday, July 17th. JPMorgan Chase & Co. lowered their target price on Kennametal from $40.00 to $34.00 and set an "underweight" rating on the stock in a research note on Monday, July 13th. Finally, DA Davidson initiated coverage on Kennametal in a report on Tuesday, June 16th. They issued a "neutral" rating and a $34.00 target price on the stock. Six investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Kennametal has an average rating of "Reduce" and an average price target of $35.79.

Insider Activity at Kennametal

In other news, VP Carlonda R. Reilly sold 12,013 shares of the firm's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total transaction of $397,870.56. Following the transaction, the vice president owned 25,143 shares in the company, valued at approximately $832,736.16. This trade represents a 32.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Judith L. Bacchus sold 5,488 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $35.94, for a total transaction of $197,238.72. Following the completion of the sale, the vice president owned 4,554 shares of the company's stock, valued at $163,670.76. This represents a 54.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 47,000 shares of company stock valued at $1,583,326. 1.43% of the stock is currently owned by corporate insiders.

Kennametal Trading Up 0.7%

Shares of NYSE:KMT opened at $35.57 on Wednesday. The firm has a fifty day moving average of $34.55 and a two-hundred day moving average of $36.30. The firm has a market capitalization of $2.71 billion, a P/E ratio of 20.10, a price-to-earnings-growth ratio of 0.61 and a beta of 1.36. Kennametal Inc. has a 12-month low of $17.62 and a 12-month high of $43.81. The company has a quick ratio of 0.99, a current ratio of 2.38 and a debt-to-equity ratio of 0.43.

Kennametal (NYSE:KMT - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share for the quarter, topping analysts' consensus estimates of $0.68 by $0.09. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The business had revenue of $592.59 million for the quarter, compared to the consensus estimate of $568.03 million. During the same period in the prior year, the business posted $0.47 earnings per share. Kennametal's revenue for the quarter was up 21.8% compared to the same quarter last year. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. On average, equities analysts expect that Kennametal Inc. will post 3.23 EPS for the current fiscal year.

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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