Burgundy Asset Management Ltd. Decreases Stock Position in 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 holdings 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 Securities and Exchange Commission (SEC). The firm owned 481,435 shares of the industrial products company's stock after selling 4,131,537 shares during the period. Burgundy Asset Management Ltd. owned 0.63% of Kennametal worth $10,255,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Dimensional Fund Advisors LP boosted its position in shares of Kennametal by 2.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 5,134,051 shares of the industrial products company's stock worth $123,319,000 after purchasing an additional 101,159 shares in the last quarter. Victory Capital Management Inc. boosted its holdings 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 worth $68,552,000 after acquiring an additional 181,035 shares in the last quarter. American Century Companies Inc. grew its stake in shares of Kennametal by 9.2% in the first 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 last quarter. Charles Schwab Investment Management Inc. increased its holdings in shares of Kennametal by 3.3% during 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 acquiring an additional 49,496 shares in the last quarter. Finally, Northern Trust Corp raised its position in shares of Kennametal by 6.9% in the 4th quarter. Northern Trust Corp now owns 993,716 shares of the industrial products company's stock worth $23,869,000 after purchasing an additional 63,770 shares during the last quarter.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. UBS Group upgraded 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 research note on Friday, August 15th. Barclays increased their price target on shares of Kennametal from $22.00 to $24.00 and gave the company an "equal weight" rating in a report on Monday, May 12th. Wall Street Zen upgraded shares of Kennametal from a "hold" rating to a "buy" rating in a report on Friday, May 16th. JPMorgan Chase & Co. cut their price target on shares of Kennametal from $23.00 to $20.00 and set an "underweight" rating on the stock in a report on Thursday, August 7th. Finally, Morgan Stanley increased 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. Five investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Kennametal currently has an average rating of "Reduce" and a consensus price target of $24.00.

Kennametal Stock Performance

KMT traded down $0.3350 during trading on Wednesday, hitting $20.7350. The company's stock had a trading volume of 1,014,045 shares, compared to its average volume of 1,092,996. The business's 50 day simple moving average is $23.22 and its 200-day simple moving average is $21.81. The firm has a market cap of $1.58 billion, a PE ratio of 17.28, a P/E/G ratio of 3.67 and a beta of 1.44. Kennametal Inc. has a one year low of $17.30 and a one year high of $32.18. The company has a quick ratio of 1.19, a current ratio of 2.46 and a debt-to-equity ratio of 0.45.

Kennametal (NYSE:KMT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.06). The business had revenue of $516.45 million for the quarter, compared to analysts' expectations 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% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.49 EPS. As a group, sell-side analysts predict 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 paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 3.9%. The ex-dividend date is Tuesday, August 12th. Kennametal's dividend payout ratio (DPR) 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.