UBS Group AG Increases Stake in Kennametal Inc. $KMT

Key Points

• UBS Group AG significantly boosted its Kennametal stake by 190.1% in the fourth quarter, ending with 538,321 shares valued at about $15.3 million.
• Kennametal reported better-than-expected quarterly results, with earnings per share of $0.77 and revenue of $592.6 million, both above analyst estimates; revenue also rose 21.8% year over year.
• The company announced a quarterly dividend of $0.20 per share, implying an annualized payout of $0.80 and a 2.3% yield.

UBS Group AG increased its position in shares of Kennametal Inc. (NYSE:KMT - Free Report) by 190.1% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 538,321 shares of the industrial products company's stock after buying an additional 352,726 shares during the period. UBS Group AG owned about 0.71% of Kennametal worth $15,294,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Gallacher Capital Management LLC purchased a new position in shares of Kennametal during the third quarter valued at $571,000. Vanguard Group Inc. grew its stake in Kennametal by 1.8% in the third quarter. Vanguard Group Inc. now owns 9,001,984 shares of the industrial products company's stock valued at $188,412,000 after purchasing an additional 155,566 shares during the last quarter. Public Sector Pension Investment Board grew its stake in Kennametal by 27.6% in the third quarter. Public Sector Pension Investment Board now owns 331,663 shares of the industrial products company's stock valued at $6,942,000 after purchasing an additional 71,732 shares during the last quarter. Dana Investment Advisors Inc. grew its stake in Kennametal by 38.2% in the third quarter. Dana Investment Advisors Inc. now owns 307,544 shares of the industrial products company's stock valued at $6,437,000 after purchasing an additional 85,032 shares during the last quarter. Finally, SG Americas Securities LLC grew its stake in Kennametal by 3,273.8% in the fourth quarter. SG Americas Securities LLC now owns 274,260 shares of the industrial products company's stock valued at $7,792,000 after purchasing an additional 266,131 shares during the last quarter.

Insider Transactions at Kennametal

In other news, VP John Wayne Witt sold 5,060 shares of the business's stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $38.29, for a total transaction of $193,747.40. Following the sale, the vice president owned 1,634 shares in the company, valued at approximately $62,565.86. The trade was a 75.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Carlonda R. Reilly sold 13,410 shares of the business's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $36.31, for a total value of $486,917.10. Following the sale, the vice president owned 38,746 shares in the company, valued at $1,406,867.26. The trade was a 25.71% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.43% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

KMT has been the topic of several analyst reports. The Goldman Sachs Group set a $32.00 target price on Kennametal in a research note on Friday, February 6th. Morgan Stanley lifted their target price on Kennametal from $29.00 to $36.00 and gave the company an "equal weight" rating in a research note on Tuesday, February 10th. Zacks Research lowered Kennametal from a "strong-buy" rating to a "hold" rating in a research note on Monday. JPMorgan Chase & Co. lifted their target price on Kennametal from $37.00 to $40.00 and gave the company an "underweight" rating in a research note on Thursday, May 7th. Finally, Weiss Ratings upgraded Kennametal from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, April 29th. One analyst has rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $36.93.

Kennametal Price Performance

Shares of NYSE KMT opened at $35.14 on Thursday. Kennametal Inc. has a fifty-two week low of $17.62 and a fifty-two week high of $43.81. The company has a market cap of $2.68 billion, a PE ratio of 19.85, a P/E/G ratio of 0.27 and a beta of 1.44. 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 business has a 50-day simple moving average of $37.85 and a two-hundred day simple moving average of $33.48.

Kennametal (NYSE:KMT - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share for the quarter, topping analysts' consensus estimates of $0.68 by $0.09. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.The business had revenue of $592.59 million for the quarter, compared to analyst estimates of $568.03 million. During the same quarter in the previous year, the firm earned $0.47 earnings per share. The company's revenue was up 21.8% on a year-over-year basis. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, equities analysts expect that Kennametal Inc. will post 2.53 EPS for the current fiscal year.

Kennametal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Tuesday, May 12th will be paid a dividend of $0.20 per share. The ex-dividend date is Tuesday, May 12th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.3%. Kennametal's payout ratio is presently 45.20%.

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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