NFJ Investment Group LLC Makes New Investment in Kennametal Inc. $KMT

Key Points

• NFJ Investment Group purchased 1.03 million Kennametal shares worth approximately $36.2 million, giving it a 1.36% stake and making KMT its 25th-largest holding.
• Analyst sentiment is cautious: five analysts rate Kennametal “Hold” and four rate it “Sell,” with an average rating of “Reduce” and a $34.07 price target. Shares opened at $29.80, well below their 50-day and 200-day moving averages.
• Kennametal reported quarterly EPS of $2.96, exceeding estimates of $2.31, while revenue rose 42.6% year over year to $736.6 million. The company also declared a quarterly dividend of $0.20, representing a 2.7% annualized yield.

NFJ Investment Group LLC purchased a new stake in Kennametal Inc. (NYSE:KMT - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 1,032,869 shares of the industrial products company's stock, valued at approximately $36,202,000. Kennametal makes up 1.2% of NFJ Investment Group LLC's investment portfolio, making the stock its 25th biggest holding. NFJ Investment Group LLC owned about 1.36% of Kennametal at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Kohmann Bosshard Financial Services LLC bought a new position in Kennametal in the 4th quarter worth about $28,000. Rockefeller Capital Management L.P. grew its holdings in Kennametal by 3,600.0% during the 4th quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company's stock valued at $28,000 after buying an additional 972 shares in the last quarter. Danske Bank A S bought a new stake in shares of Kennametal during the fourth quarter valued at about $31,000. Headlands Technologies LLC increased its position in shares of Kennametal by 80.7% during the second quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company's stock valued at $35,000 after buying an additional 682 shares during the period. Finally, Smartleaf Asset Management LLC lifted its holdings in shares of Kennametal by 142.3% in the second quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company's stock worth $48,000 after buying an additional 1,228 shares in the last quarter.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. JPMorgan Chase & Co. cut their price objective on shares of Kennametal from $40.00 to $34.00 and set an "underweight" rating for the company in a research report on Monday, July 13th. UBS Group decreased their target price on shares of Kennametal from $39.00 to $35.00 and set a "neutral" rating on the stock in a report on Monday, August 10th. Zacks Research cut shares of Kennametal from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 14th. Barclays downgraded shares of Kennametal from an "equal weight" rating to an "underweight" rating and cut their price target for the company from $40.00 to $33.00 in a report on Wednesday, May 27th. Finally, DA Davidson decreased their price target on shares of Kennametal from $34.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, August 11th. Five equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and an average target price of $34.07.

Kennametal Stock Down 2.6%

Shares of KMT opened at $29.80 on Friday. The firm has a market cap of $2.27 billion, a P/E ratio of 6.77, a P/E/G ratio of 0.30 and a beta of 1.36. The stock has a 50 day simple moving average of $33.95 and a two-hundred day simple moving average of $36.16. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.62 and a quick ratio of 0.98. Kennametal Inc. has a 1 year low of $20.35 and a 1 year high of $43.81.

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

Kennametal Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th will be given a $0.20 dividend. The ex-dividend date is Tuesday, August 11th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.7%. Kennametal's payout ratio is presently 18.18%.

Insider Activity

In other news, VP Judith L. Bacchus sold 5,488 shares of the business's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $35.94, for a total transaction of $197,238.72. Following the transaction, the vice president directly owned 4,554 shares of the company's stock, valued at approximately $163,670.76. The trade was a 54.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Carlonda R. Reilly sold 12,013 shares of the business's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total transaction of $397,870.56. Following the transaction, the vice president directly owned 25,143 shares in the company, valued at approximately $832,736.16. The trade was a 32.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 47,000 shares of company stock valued at $1,583,326. Insiders own 1.43% of the company's stock.

Kennametal 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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