Summit Global Investments Invests $1.43 Million in Kennametal Inc. $KMT

Key Points

• Summit Global Investments acquired 40,919 Kennametal shares worth approximately $1.43 million, while several other institutional investors also increased or initiated positions.
• Kennametal reported quarterly EPS of $2.96, exceeding estimates of $2.31, with revenue rising 42.6% year over year to $736.6 million. The company declared a quarterly dividend of $0.20 per share, implying a 2.6% yield.
• Analyst sentiment remains cautious: five analysts rate the stock Hold and four rate it Sell, producing an overall “Reduce” rating and a consensus price target of $34.07; insiders sold about 47,000 shares during the quarter.

Summit Global Investments bought a new position in Kennametal Inc. (NYSE:KMT - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 40,919 shares of the industrial products company's stock, valued at approximately $1,434,000. Summit Global Investments owned about 0.05% of Kennametal as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently modified their holdings of KMT. LSV Asset Management purchased a new position in Kennametal in the 4th quarter worth about $2,290,000. Medina Value Partners LLC lifted its stake in Kennametal by 72.7% during the fourth quarter. Medina Value Partners LLC now owns 968,294 shares of the industrial products company's stock valued at $27,509,000 after buying an additional 407,487 shares in the last quarter. UBS Group AG lifted its stake in Kennametal by 190.1% during the fourth quarter. UBS Group AG now owns 538,321 shares of the industrial products company's stock valued at $15,294,000 after buying an additional 352,726 shares in the last quarter. Steel Grove Capital Advisors LLC purchased a new stake in Kennametal during the fourth quarter valued at about $1,911,000. Finally, Cozad Asset Management Inc. acquired a new position in shares of Kennametal in the first quarter worth about $1,228,000.

Kennametal Trading Up 2.7%

NYSE KMT opened at $31.21 on Friday. The company has a current ratio of 2.62, a quick ratio of 0.98 and a debt-to-equity ratio of 0.42. Kennametal Inc. has a 1-year low of $20.35 and a 1-year high of $43.81. The firm's fifty day simple moving average is $34.20 and its 200-day simple moving average is $36.26. The company has a market capitalization of $2.38 billion, a PE ratio of 7.09, a price-to-earnings-growth ratio of 0.29 and a beta of 1.36.

Kennametal (NYSE:KMT - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The industrial products company reported $2.96 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.31 by $0.65. Kennametal had a return on equity of 24.83% and a net margin of 14.53%.The firm had revenue of $736.61 million during the quarter, compared to analysts' expectations of $725.74 million. During the same quarter last year, the firm earned $0.34 earnings per share. The business's revenue for the quarter was up 42.6% on a year-over-year basis. 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, sell-side analysts anticipate that Kennametal Inc. will post 4.97 earnings per share for the current fiscal year.

Kennametal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Tuesday, August 11th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $0.80 annualized dividend and a dividend yield of 2.6%. Kennametal's payout ratio is presently 18.18%.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. DA Davidson dropped their target price on shares of Kennametal from $34.00 to $30.00 and set a "neutral" rating on the stock in a research report on Tuesday. Jefferies Financial Group downgraded shares of Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price target for the company. in a research report on Thursday, May 7th. Morgan Stanley lowered shares of Kennametal from an "equal weight" rating to an "underweight" rating and decreased their price objective for the stock from $31.00 to $27.00 in a research note on Monday, August 10th. UBS Group lowered their price objective on shares of Kennametal from $39.00 to $35.00 and set a "neutral" rating on the stock in a research report on Monday. Finally, Weiss Ratings downgraded shares of Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 20th. Five research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $34.07.

Insider Buying and Selling

In related news, 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 transaction, the vice president owned 4,554 shares in the company, valued at approximately $163,670.76. This represents a 54.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Sagar A. Patel sold 29,499 shares of the firm's 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 47,000 shares of company stock worth $1,583,326. Insiders own 1.43% of the company's stock.

About Kennametal

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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