Wellington Management Group LLP Reduces Holdings in Kennametal Inc. $KMT

Key Points

• Wellington Management Group LLP reduced its holdings in Kennametal Inc. by 48.7%, now owning 2,725,845 shares valued at approximately $58.06 million.
• Kennametal reported a 4.9% decline in quarterly revenue year-over-year, with earnings per share missing the consensus estimate by $0.06.
• The company declared a quarterly dividend of $0.20 per share, yielding 3.7%, with a payout ratio of 66.67%.

Wellington Management Group LLP trimmed its holdings in Kennametal Inc. (NYSE:KMT - Free Report) by 48.7% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,725,845 shares of the industrial products company's stock after selling 2,583,303 shares during the quarter. Wellington Management Group LLP owned approximately 3.58% of Kennametal worth $58,060,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Curat Global LLC purchased a new position in shares of Kennametal in the first quarter valued at $35,000. Parallel Advisors LLC lifted its position in Kennametal by 107.6% in the first quarter. Parallel Advisors LLC now owns 1,958 shares of the industrial products company's stock worth $42,000 after buying an additional 1,015 shares during the last quarter. US Bancorp DE increased its stake in Kennametal by 93.4% in the first quarter. US Bancorp DE now owns 2,145 shares of the industrial products company's stock worth $46,000 after purchasing an additional 1,036 shares during the period. DekaBank Deutsche Girozentrale purchased a new stake in Kennametal in the first quarter worth $52,000. Finally, Bayforest Capital Ltd purchased a new stake in Kennametal in the first quarter worth $64,000.

Kennametal Price Performance

Shares of Kennametal stock traded up $0.14 on Wednesday, reaching $21.58. The company's stock had a trading volume of 368,645 shares, compared to its average volume of 1,083,068. The company has a market capitalization of $1.64 billion, a P/E ratio of 17.98, a PEG ratio of 3.78 and a beta of 1.44. Kennametal Inc. has a 52-week low of $17.30 and a 52-week high of $32.18. The stock has a 50-day moving average price of $23.12 and a 200-day moving average price of $21.76. The company has a quick ratio of 1.19, a current ratio of 2.46 and a debt-to-equity ratio of 0.45.

Kennametal (NYSE:KMT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.06). Kennametal had a return on equity of 8.09% and a net margin of 4.73%.The firm had revenue of $516.45 million for the quarter, compared to analysts' expectations of $527.52 million. During the same quarter in the previous year, the firm posted $0.49 earnings per share. The firm's revenue for the quarter was down 4.9% compared to the same quarter last year. Analysts expect that Kennametal Inc. will post 1.17 EPS for the current year.

Kennametal Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 26th. Investors of record on Tuesday, August 12th were given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 3.7%. The ex-dividend date was Tuesday, August 12th. Kennametal's payout ratio is presently 66.67%.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on KMT. Loop Capital restated a "hold" rating and set a $24.00 price target (up previously from $21.00) on shares of Kennametal in a research note on Wednesday, June 25th. UBS Group raised Kennametal from a "sell" rating to a "neutral" rating and raised their price target for the stock from $19.00 to $21.00 in a report on Friday, August 15th. Morgan Stanley raised their price target on Kennametal from $20.00 to $21.00 and gave the stock an "equal weight" rating in a report on Monday, May 12th. Zacks Research raised Kennametal to a "strong sell" rating in a report on Monday, August 11th. Finally, Wall Street Zen raised Kennametal from a "hold" rating to a "buy" rating in a report on Friday, May 16th. Five analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, Kennametal currently has an average rating of "Reduce" and a consensus target price of $24.00.

About Kennametal

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.