Man Group plc Makes New $1.67 Million Investment in Kennametal Inc. $KMT

Key Points

• Man Group plc acquired 47,718 Kennametal shares worth approximately $1.67 million during the second quarter, representing about 0.06% of the company. Several other institutional investors also initiated or increased positions.
• Analysts remain cautious, with Kennametal receiving a consensus “Reduce” rating from five Hold and four Sell recommendations. The average price target is $34.07, while several firms recently lowered their targets.
• Kennametal exceeded quarterly earnings expectations, reporting $2.96 EPS versus the $2.31 consensus and revenue of $736.61 million. The company also maintains a quarterly dividend of $0.20 per share, equivalent to a 2.7% annualized yield.

Man Group plc bought a new position in Kennametal Inc. (NYSE:KMT - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The fund bought 47,718 shares of the industrial products company's stock, valued at approximately $1,673,000. Man Group plc owned about 0.06% of Kennametal as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Allworth Financial LP purchased a new position in Kennametal in the second quarter worth about $25,000. Rockefeller Capital Management L.P. raised its position in Kennametal by 3,600.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 972 shares during the period. Danske Bank A S bought a new stake in shares of Kennametal in the 4th quarter valued at approximately $31,000. Headlands Technologies LLC lifted its stake in shares of Kennametal by 80.7% in the 2nd quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company's stock valued at $35,000 after purchasing an additional 682 shares during the last quarter. Finally, Smartleaf Asset Management LLC boosted its holdings in shares of Kennametal by 142.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company's stock worth $48,000 after purchasing an additional 1,228 shares during the period.

Analysts Set New Price Targets

Several research firms have recently weighed in on KMT. Morgan Stanley downgraded Kennametal from an "equal weight" rating to an "underweight" rating and cut their target price for the company from $31.00 to $27.00 in a research report on Monday, August 10th. Zacks Research lowered shares of Kennametal from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 14th. JPMorgan Chase & Co. cut their price objective on shares of Kennametal from $40.00 to $34.00 and set an "underweight" rating on the stock in a research report on Monday, July 13th. Jefferies Financial Group lowered shares of Kennametal from a "buy" rating to a "hold" rating and set a $47.50 target price for the company. in a report on Thursday, May 7th. Finally, DA Davidson dropped their price target on shares of Kennametal from $34.00 to $30.00 and set a "neutral" rating for the company in a research note on Tuesday, August 11th. Five investment analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $34.07.

Kennametal Stock Performance

Shares of Kennametal stock opened at $29.18 on Wednesday. The company has a quick ratio of 0.98, a current ratio of 2.62 and a debt-to-equity ratio of 0.42. The stock's fifty day moving average is $32.95 and its two-hundred day moving average is $35.64. Kennametal Inc. has a 52 week low of $20.35 and a 52 week high of $43.81. The company has a market capitalization of $2.22 billion, a PE ratio of 6.63, a price-to-earnings-growth ratio of 0.29 and a beta of 1.34.

Kennametal (NYSE:KMT - Get Free Report) last released its earnings results on Wednesday, August 5th. The industrial products company reported $2.96 earnings per share for the quarter, topping the consensus estimate of $2.31 by $0.65. The business had revenue of $736.61 million during the quarter, compared to the consensus estimate of $725.74 million. Kennametal had a return on equity of 24.83% and a net margin of 14.53%.The business's revenue for the quarter was up 42.6% compared to the same quarter last year. During the same period last year, the company earned $0.34 earnings per share. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. As a group, analysts expect that Kennametal Inc. will post 4.82 earnings per share for the current year.

Kennametal Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, August 11th were issued a dividend of $0.20 per share. The ex-dividend date was Tuesday, August 11th. This represents a $0.80 dividend on an annualized basis and a yield of 2.7%. Kennametal's dividend payout ratio (DPR) is presently 18.18%.

Insider Activity

In other news, Director Sagar A. Patel sold 29,499 shares of Kennametal stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $33.50, for a total transaction of $988,216.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Judith L. Bacchus sold 5,488 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $35.94, for a total value of $197,238.72. Following the completion of the transaction, the vice president directly owned 4,554 shares in the company, valued at approximately $163,670.76. This trade represents a 54.65% decrease in their position. The SEC filing for this sale provides additional information. 1.43% of the stock is owned by insiders.

Kennametal Company 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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