Burgundy Asset Management Ltd. Sells 4,131,537 Shares of Kennametal Inc. $KMT

Key Points

• Burgundy Asset Management Ltd. significantly reduced its stake in Kennametal Inc. by 89.6% during the first quarter, selling over 4 million shares and retaining a position of just 481,435 shares valued at $10.25 million.
• Analysts have varied opinions on Kennametal, with some upgrades and downgrades, leading to a consensus rating of "Hold" and an average target price of $24.00.
• Kennametal reported a quarterly earnings miss, with earnings per share at $0.34, falling short of expectations, as well as a revenue decline of 4.9% compared to the previous year.

Burgundy Asset Management Ltd. reduced its position in shares of Kennametal Inc. (NYSE:KMT - Free Report) by 89.6% in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 481,435 shares of the industrial products company's stock after selling 4,131,537 shares during the quarter. Burgundy Asset Management Ltd. owned about 0.63% of Kennametal worth $10,255,000 as of its most recent SEC filing.

Other large investors have also bought and sold shares of the company. Curat Global LLC bought a new stake in Kennametal during the first quarter worth approximately $35,000. Parallel Advisors LLC boosted its stake in shares of Kennametal by 107.6% during the 1st quarter. Parallel Advisors LLC now owns 1,958 shares of the industrial products company's stock worth $42,000 after acquiring an additional 1,015 shares in the last quarter. US Bancorp DE grew its holdings in shares of Kennametal by 93.4% in the 1st quarter. US Bancorp DE now owns 2,145 shares of the industrial products company's stock worth $46,000 after acquiring an additional 1,036 shares during the last quarter. DekaBank Deutsche Girozentrale acquired a new position in shares of Kennametal in the 1st quarter worth $52,000. Finally, Sterling Capital Management LLC raised its position in shares of Kennametal by 801.8% during the fourth quarter. Sterling Capital Management LLC now owns 2,453 shares of the industrial products company's stock worth $59,000 after purchasing an additional 2,181 shares during the period.

Wall Street Analysts Forecast Growth

KMT has been the topic of a number of analyst reports. Barclays lifted their price target on Kennametal from $22.00 to $24.00 and gave the stock an "equal weight" rating in a research note on Monday, May 12th. 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 report on Monday, May 12th. Zacks Research upgraded shares of Kennametal to a "strong sell" rating in a research report on Monday, August 11th. JPMorgan Chase & Co. lowered their price objective 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. Finally, Loop Capital reissued 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 analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and an average price target of $24.00.

Kennametal Stock Up 4.4%

NYSE KMT traded up $0.9090 on Friday, reaching $21.7190. The stock had a trading volume of 529,697 shares, compared to its average volume of 1,086,858. The company has a current ratio of 2.46, a quick ratio of 1.19 and a debt-to-equity ratio of 0.45. Kennametal Inc. has a 1 year low of $17.30 and a 1 year high of $32.18. The business has a 50 day moving average price of $23.15 and a 200 day moving average price of $21.79. The company has a market capitalization of $1.65 billion, a price-to-earnings ratio of 18.10, a P/E/G ratio of 3.65 and a beta of 1.44.

Kennametal (NYSE:KMT - Get Free Report) last posted its earnings results on Wednesday, August 6th. The industrial products company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.06). The business had revenue of $516.45 million during 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 business's revenue was down 4.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.49 earnings per share. On average, analysts forecast that Kennametal Inc. will post 1.17 EPS for the current fiscal year.

Kennametal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 26th. Stockholders of record on Tuesday, August 12th will be given a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend is Tuesday, August 12th. Kennametal's dividend payout ratio (DPR) is currently 66.67%.

Kennametal 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.