Dean Capital Management Sells 64,622 Shares of Kennametal Inc. $KMT

Key Points

• Dean Capital Management reduced its holdings in Kennametal Inc. by 62.7% during Q1, now owning only 38,524 shares valued at approximately $821,000.
• Kennametal reported a missed earnings estimate with a Q1 EPS of $0.34, falling short of the $0.40 consensus, and a 4.9% decline in revenue compared to the previous year.
• The company announced a quarterly dividend of $0.20 per share, resulting in an annualized yield of 3.8%, with a payout ratio of 66.67%.

Dean Capital Management trimmed its stake in Kennametal Inc. (NYSE:KMT - Free Report) by 62.7% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 38,524 shares of the industrial products company's stock after selling 64,622 shares during the quarter. Dean Capital Management owned approximately 0.05% of Kennametal worth $821,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently bought and sold shares of the stock. Victory Capital Management Inc. grew its stake in Kennametal by 6.0% in 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 purchasing an additional 181,035 shares in the last quarter. American Century Companies Inc. boosted its stake in shares of 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. Charles Schwab Investment Management Inc. boosted its stake in shares of Kennametal by 3.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,529,095 shares of the industrial products company's stock worth $32,570,000 after acquiring an additional 49,496 shares during the period. 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 during the period. Finally, Voloridge Investment Management LLC boosted its stake in shares of Kennametal by 1.4% during the 4th quarter. Voloridge Investment Management LLC now owns 640,162 shares of the industrial products company's stock worth $15,377,000 after acquiring an additional 8,753 shares during the period.

Wall Street Analyst Weigh In

KMT has been the subject of several research analyst reports. Zacks Research upgraded Kennametal to a "strong sell" rating in a research note on Monday, August 11th. UBS Group upgraded Kennametal from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $19.00 to $21.00 in a research note on Friday, August 15th. JPMorgan Chase & Co. reduced their target price on Kennametal from $23.00 to $20.00 and set an "underweight" rating for the company in a research note on Thursday, August 7th. Finally, Loop Capital reiterated a "hold" rating and set a $24.00 target price (up from $21.00) on shares of Kennametal in a research note on Wednesday, June 25th. Five equities research 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, Kennametal presently has a consensus rating of "Reduce" and a consensus target price of $24.00.

Kennametal Price Performance

Shares of Kennametal stock traded up $0.23 during trading on Monday, reaching $20.99. 242,539 shares of the company's stock were exchanged, compared to its average volume of 1,059,854. The company has a market cap of $1.60 billion, a P/E ratio of 17.50, a PEG ratio of 3.65 and a beta of 1.44. Kennametal Inc. has a 1-year low of $17.30 and a 1-year high of $32.18. 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's 50-day moving average price is $22.70 and its 200 day moving average price is $21.67.

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

Kennametal Dividend Announcement

The company also recently disclosed 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 was Tuesday, August 12th. This represents a $0.80 dividend on an annualized basis and a yield of 3.8%. Kennametal's payout ratio is currently 66.67%.

Kennametal Company Profile

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.