Kennametal (NYSE:KMT) CEO Buys 7,000 Shares

Key Points

• CEO Sanjay Chowbey purchased 7,000 Kennametal shares at an average price of $29.10, investing $203,700 and increasing his direct ownership to 246,839 shares.
• Kennametal reported quarterly EPS of $2.96, exceeding estimates of $2.31, while revenue rose 42.6% year over year to $736.61 million. The company also pays a quarterly dividend of $0.20 per share, yielding approximately 2.7% annually.
• Analyst sentiment remains cautious, with five Hold ratings and four Sell ratings; the stock’s average rating is “Reduce” and the average price target is $34.07.

Kennametal Inc. (NYSE:KMT - Get Free Report) CEO Sanjay Chowbey purchased 7,000 shares of Kennametal stock in a transaction dated Thursday, September 10th. The stock was bought at an average price of $29.10 per share, for a total transaction of $203,700.00. Following the completion of the transaction, the chief executive officer directly owned 246,839 shares in the company, valued at $7,183,014.90. The trade was a 2.92% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website.

Kennametal Trading Up 1.8%

NYSE KMT traded up $0.53 on Friday, reaching $29.66. The company had a trading volume of 162,024 shares, compared to its average volume of 1,402,071. Kennametal Inc. has a 52 week low of $20.35 and a 52 week high of $43.81. The stock's 50 day moving average is $32.27 and its 200-day moving average is $35.19. The company has a quick ratio of 0.98, a current ratio of 2.62 and a debt-to-equity ratio of 0.42. The stock has a market cap of $2.26 billion, a price-to-earnings ratio of 6.72, a PEG ratio of 0.29 and a beta of 1.34.

Kennametal (NYSE:KMT - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $2.96 EPS for the quarter, beating analysts' consensus estimates of $2.31 by $0.65. The company had revenue of $736.61 million during the quarter, compared to analysts' expectations of $725.74 million. Kennametal had a return on equity of 24.83% and a net margin of 14.53%.Kennametal's revenue was up 42.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.34 EPS. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. Equities analysts predict that Kennametal Inc. will post 4.82 earnings per share for the current year.

Kennametal Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, August 11th were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Tuesday, August 11th. Kennametal's dividend payout ratio (DPR) is presently 18.18%.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on KMT shares. Zacks Research lowered shares of Kennametal from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 14th. DA Davidson cut their price target on Kennametal from $34.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, August 11th. UBS Group reduced their price objective on Kennametal from $39.00 to $35.00 and set a "neutral" rating for the company in a research report on Monday, August 10th. Morgan Stanley downgraded 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 report on Monday, August 10th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Kennametal in a research report on Monday, August 17th. Five research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to MarketBeat, Kennametal currently has an average rating of "Reduce" and an average target price of $34.07.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Baron Wealth Management LLC increased its holdings in Kennametal by 3.8% in the first quarter. Baron Wealth Management LLC now owns 11,972 shares of the industrial products company's stock valued at $433,000 after purchasing an additional 439 shares during the period. ProShare Advisors LLC lifted its holdings in Kennametal by 3.1% during the 4th quarter. ProShare Advisors LLC now owns 14,799 shares of the industrial products company's stock worth $420,000 after buying an additional 450 shares during the period. ARK Investment Management LLC lifted its holdings in Kennametal by 16.6% during the 4th quarter. ARK Investment Management LLC now owns 3,210 shares of the industrial products company's stock worth $91,000 after buying an additional 457 shares during the period. Smartleaf Asset Management LLC grew its position in shares of Kennametal by 21.7% in the 4th quarter. Smartleaf Asset Management LLC now owns 3,088 shares of the industrial products company's stock valued at $88,000 after buying an additional 551 shares during the last quarter. Finally, New Age Alpha Advisors LLC grew its position in shares of Kennametal by 5.4% in the 4th quarter. New Age Alpha Advisors LLC now owns 10,977 shares of the industrial products company's stock valued at $312,000 after buying an additional 567 shares during the last quarter.

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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