Invesco Ltd. Cuts Holdings in Kennametal Inc. $KMT

Key Points

• Invesco Ltd. has reduced its stake in Kennametal Inc. by 15.1%, selling 64,193 shares and now holding 361,890 shares valued at about $7.7 million.
• Kennametal recently reported earnings of $0.34 per share, missing estimates by $0.06, with a revenue of $516.45 million for the quarter, down 4.9% year-over-year.
• The firm announced a quarterly dividend of $0.20 per share, representing a 3.7% yield, with the ex-dividend date set for August 12th.

Invesco Ltd. trimmed its stake in Kennametal Inc. (NYSE:KMT - Free Report) by 15.1% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 361,890 shares of the industrial products company's stock after selling 64,193 shares during the quarter. Invesco Ltd. owned approximately 0.47% of Kennametal worth $7,708,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Mackenzie Financial Corp boosted its stake in Kennametal by 557.1% in the first quarter. Mackenzie Financial Corp now owns 77,877 shares of the industrial products company's stock valued at $1,659,000 after acquiring an additional 66,025 shares during the last quarter. Janney Montgomery Scott LLC raised its position in shares of Kennametal by 17.8% in the first quarter. Janney Montgomery Scott LLC now owns 13,242 shares of the industrial products company's stock valued at $282,000 after purchasing an additional 2,000 shares during the period. GAMMA Investing LLC raised its position in shares of Kennametal by 699.1% in the first quarter. GAMMA Investing LLC now owns 11,651 shares of the industrial products company's stock valued at $248,000 after purchasing an additional 10,193 shares during the period. Envestnet Asset Management Inc. raised its position in shares of Kennametal by 219.5% in the first quarter. Envestnet Asset Management Inc. now owns 57,481 shares of the industrial products company's stock valued at $1,224,000 after purchasing an additional 39,492 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Kennametal by 3.3% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,529,095 shares of the industrial products company's stock valued at $32,570,000 after purchasing an additional 49,496 shares during the period.

Kennametal Price Performance

Kennametal stock traded down $0.26 during midday trading on Friday, reaching $21.42. 755,866 shares of the stock were exchanged, compared to its average volume of 1,534,728. The company's fifty day moving average is $23.09 and its 200-day moving average is $21.75. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.19 and a current ratio of 2.46. The firm has a market cap of $1.63 billion, a PE ratio of 17.85, a PEG ratio of 3.77 and a beta of 1.44. Kennametal Inc. has a 52 week low of $17.30 and a 52 week high of $32.18.

Kennametal (NYSE:KMT - Get Free Report) last posted its 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 return on equity of 8.09% and a net margin of 4.73%.The firm had revenue of $516.45 million for the quarter, compared to the consensus estimate of $527.52 million. During the same period last year, the company posted $0.49 EPS. The business's revenue was down 4.9% on a year-over-year basis. On average, sell-side analysts forecast that Kennametal Inc. will post 1.17 EPS for the current year.

Kennametal Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 26th. Shareholders of record on Tuesday, August 12th were paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date of this dividend was Tuesday, August 12th. Kennametal's payout ratio is currently 66.67%.

Analysts Set New Price Targets

Several analysts have recently issued reports on KMT shares. Barclays boosted their price target on shares of Kennametal from $22.00 to $24.00 and gave the company an "equal weight" rating in a research report on Monday, May 12th. JPMorgan Chase & Co. lowered their price target on shares of Kennametal from $23.00 to $20.00 and set an "underweight" rating on the stock in a research report on Thursday, August 7th. Zacks Research raised shares of Kennametal to a "strong sell" rating in a research report on Monday, August 11th. Morgan Stanley boosted their price target on shares of Kennametal from $20.00 to $21.00 and gave the company an "equal weight" rating in a research report on Monday, May 12th. Finally, UBS Group raised shares of Kennametal from a "sell" rating to a "neutral" rating and upped their target price for the stock from $19.00 to $21.00 in a report on Friday, August 15th. Five analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Kennametal has a consensus rating of "Reduce" and a consensus price target 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.