Tidal Investments LLC Lowers Stock Holdings in Kennametal Inc. $KMT

Key Points

• Tidal Investments cut its Kennametal stake by 52.1% in the second quarter, selling 56,780 shares and retaining 52,153 shares worth approximately $1.83 million. Several other major institutions, including BlackRock, initiated new positions.
• Analyst sentiment remains cautious: Kennametal has an average “Reduce” rating and a consensus price target of $34.07, with Morgan Stanley and Barclays downgrading the stock to “underweight.”
• Kennametal reported quarterly earnings of $2.96 per share, beating expectations, while revenue rose 42.6% year over year to $736.61 million. The company also maintains a quarterly dividend of $0.20 per share, representing a 2.7% yield.

Tidal Investments LLC lowered its position in shares of Kennametal Inc. (NYSE:KMT - Free Report) by 52.1% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 52,153 shares of the industrial products company's stock after selling 56,780 shares during the period. Tidal Investments LLC owned about 0.07% of Kennametal worth $1,828,000 at the end of the most recent reporting period.

Several other institutional investors have also recently modified their holdings of KMT. BlackRock Inc. purchased a new position in shares of Kennametal during the 2nd quarter valued at about $440,446,000. William Blair Investment Management LLC purchased a new stake in Kennametal in the second quarter worth approximately $69,614,000. Medina Value Partners LLC purchased a new stake in Kennametal in the second quarter worth approximately $43,007,296. NFJ Investment Group LLC bought a new position in Kennametal during the second quarter valued at approximately $36,202,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Kennametal during the second quarter worth approximately $33,949,000.

Insiders Place Their Bets

In other news, VP Judith L. Bacchus sold 9,676 shares of the company's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $30.29, for a total transaction of $293,086.04. Following the completion of the transaction, the vice president directly owned 15,721 shares of the company's stock, valued at approximately $476,189.09. This represents a 38.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Sanjay Chowbey bought 7,000 shares of the company's stock in a transaction dated Thursday, September 10th. The shares were purchased at an average price of $29.10 per share, with a total value of $203,700.00. Following the completion of the acquisition, the chief executive officer owned 246,839 shares of the company's stock, valued at $7,183,014.90. This trade represents a 2.92% increase in their position. The SEC filing for this purchase provides additional information. 1.43% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on KMT. Morgan Stanley lowered shares of Kennametal from an "equal weight" rating to an "underweight" rating and lowered their price objective for the stock from $31.00 to $27.00 in a report on Monday, August 10th. UBS Group reduced 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. Barclays cut shares of Kennametal from an "equal weight" rating to an "underweight" rating and decreased their target price for the stock from $40.00 to $33.00 in a research report on Wednesday, May 27th. DA Davidson lowered 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. Finally, Zacks Research upgraded shares of Kennametal from a "hold" rating to a "strong-buy" rating in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, Kennametal presently has an average rating of "Reduce" and an average target price of $34.07.

Kennametal Price Performance

Shares of Kennametal stock opened at $29.86 on Friday. 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 one year low of $20.35 and a one year high of $43.81. The business's 50 day simple moving average is $31.88 and its two-hundred day simple moving average is $34.82. The stock has a market capitalization of $2.28 billion, a P/E ratio of 6.79, a price-to-earnings-growth ratio of 0.29 and a beta of 1.34.

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 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 analyst estimates of $725.74 million. During the same quarter in the prior year, the firm posted $0.34 earnings per share. The business's quarterly 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. Analysts forecast that Kennametal Inc. will post 4.82 EPS for the current year.

Kennametal Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th were given a dividend of $0.20 per share. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $0.80 annualized dividend and a yield of 2.7%. Kennametal's dividend payout ratio is presently 18.18%.

About Kennametal

Kennametal Inc NYSE: KMT is an industrial technology company that develops and manufactures tooling, engineered components and wear-resistant solutions for demanding applications. Its products are designed to help customers cut, shape, drill and protect materials used in manufacturing, transportation, energy, infrastructure and other industrial markets.

The company's offerings include carbide and ceramic cutting tools, indexable inserts, solid carbide tooling, toolholding systems and related metal-cutting products.

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