Steel Grove Capital Advisors LLC Makes New Investment in Kennametal Inc. $KMT

Key Points

• Steel Grove Capital Advisors disclosed a new position in Kennametal, buying 67,258 shares valued at about $1.91 million in the fourth quarter.
• Kennametal’s latest quarterly results beat expectations, with EPS of $0.77 versus the $0.68 estimate and revenue of $592.6 million, up 21.8% year over year.
• Analysts remain cautious overall: the stock has an average rating of “Reduce” with an average price target of $35.93, even as some firms raised targets and one downgraded the stock.

Steel Grove Capital Advisors LLC purchased a new position in shares of Kennametal Inc. (NYSE:KMT - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 67,258 shares of the industrial products company's stock, valued at approximately $1,911,000. Steel Grove Capital Advisors LLC owned approximately 0.09% of Kennametal at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Kohmann Bosshard Financial Services LLC bought a new stake in Kennametal during the 4th quarter worth about $28,000. Hantz Financial Services Inc. lifted its position in Kennametal by 350.2% during the 3rd quarter. Hantz Financial Services Inc. now owns 1,373 shares of the industrial products company's stock worth $29,000 after buying an additional 1,068 shares in the last quarter. Danske Bank A S acquired a new stake in shares of Kennametal in the 4th quarter valued at approximately $31,000. Headlands Technologies LLC boosted its holdings 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 buying 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 valued at $48,000 after buying an additional 1,228 shares during the last quarter.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. UBS Group increased their price objective on Kennametal from $32.00 to $39.00 and gave the company a "neutral" rating in a report on Thursday, February 5th. Barclays downgraded Kennametal from an "equal weight" rating to an "underweight" rating and set a $33.00 price objective for the company. in a report on Wednesday. Morgan Stanley increased their price objective on Kennametal from $29.00 to $36.00 and gave the company an "equal weight" rating in a report on Tuesday, February 10th. Weiss Ratings downgraded Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 20th. Finally, The Goldman Sachs Group set a $32.00 price objective on Kennametal in a report on Friday, February 6th. Six equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $35.93.

Kennametal Trading Up 2.4%

Kennametal stock opened at $36.95 on Wednesday. Kennametal Inc. has a 52 week low of $17.62 and a 52 week high of $43.81. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.99 and a current ratio of 2.38. The stock has a market capitalization of $2.82 billion, a P/E ratio of 20.88, a PEG ratio of 0.23 and a beta of 1.44. The stock has a 50-day simple moving average of $37.18 and a 200 day simple moving average of $34.29.

Kennametal (NYSE:KMT - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $0.77 EPS for the quarter, beating the consensus estimate of $0.68 by $0.09. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The firm had revenue of $592.59 million for the quarter, compared to the consensus estimate of $568.03 million. During the same period in the previous year, the company earned $0.47 earnings per share. The company's quarterly revenue was up 21.8% on a year-over-year basis. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. Analysts expect that Kennametal Inc. will post 2.99 earnings per share for the current year.

Kennametal Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, May 26th. Shareholders of record on Tuesday, May 12th were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 2.2%. The ex-dividend date was Tuesday, May 12th. Kennametal's payout ratio is currently 45.20%.

Insider Activity at Kennametal

In other Kennametal news, VP Carlonda R. Reilly sold 13,410 shares of the company's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $36.31, for a total value of $486,917.10. Following the transaction, the vice president directly owned 38,746 shares in the company, valued at $1,406,867.26. The trade was a 25.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 1.43% of the stock is currently owned by corporate insiders.

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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