JPMorgan Chase & Co. Cuts Kennametal (NYSE:KMT) Price Target to $34.00

Key Points

• JPMorgan cut Kennametal’s price target to $34 from $40 and kept an underweight rating, implying only modest upside from the current share price.
• Other analysts have also turned cautious: Barclays lowered its target to $33 and downgraded the stock to underweight, while the overall analyst consensus is now a “Reduce” with an average target of $36.50.
• Kennametal recently posted better-than-expected quarterly results, with EPS of $0.77 versus $0.68 expected and revenue up 21.8% year over year, even as insiders sold shares in recent months.

Kennametal (NYSE:KMT - Get Free Report) had its price objective dropped by investment analysts at JPMorgan Chase & Co. from $40.00 to $34.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has an "underweight" rating on the industrial products company's stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 0.85% from the company's current price.

Other research analysts also recently issued reports about the company. Barclays downgraded Kennametal from an "equal weight" rating to an "underweight" rating and reduced their target price for the stock from $40.00 to $33.00 in a research note on Wednesday, May 27th. DA Davidson started coverage on shares of Kennametal in a research report on Tuesday, June 16th. They issued a "neutral" rating and a $34.00 target price on the stock. Weiss Ratings cut shares of Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 20th. Zacks Research upgraded shares of Kennametal from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 6th. Finally, Jefferies Financial Group cut Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price objective on the stock. in a report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $36.50.

Kennametal Stock Performance

KMT stock traded up $0.11 during midday trading on Monday, hitting $33.71. 257,210 shares of the stock traded hands, compared to its average volume of 1,394,262. Kennametal has a 1-year low of $17.62 and a 1-year high of $43.81. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.38 and a quick ratio of 0.99. The stock's fifty day simple moving average is $35.12 and its 200-day simple moving average is $35.83. The firm has a market cap of $2.57 billion, a P/E ratio of 19.06, a PEG ratio of 0.21 and a beta of 1.36.

Kennametal (NYSE:KMT - Get Free Report) last posted its earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.09. The business had revenue of $592.59 million for the quarter, compared to analyst estimates of $568.03 million. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The company's revenue for the quarter was up 21.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.47 EPS. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. On average, analysts expect that Kennametal will post 3.23 earnings per share for the current year.

Insider Activity

In other Kennametal news, VP Carlonda R. Reilly sold 12,013 shares of the business's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $33.12, for a total transaction of $397,870.56. Following the transaction, the vice president owned 25,143 shares of the company's stock, valued at approximately $832,736.16. The trade was a 32.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Sagar A. Patel sold 29,499 shares of the firm's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $33.50, for a total value of $988,216.50. The disclosure for this sale is available in the SEC filing. Insiders sold 47,000 shares of company stock worth $1,583,326 over the last three months. Insiders own 1.43% of the company's stock.

Hedge Funds Weigh In On Kennametal

A number of hedge funds have recently modified their holdings of the business. Rockefeller Capital Management L.P. grew its stake in shares of Kennametal by 3,600.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company's stock valued at $28,000 after buying an additional 972 shares in the last quarter. Kohmann Bosshard Financial Services LLC acquired a new position in Kennametal during the 4th quarter worth about $28,000. Danske Bank A S purchased a new position in Kennametal during the 4th quarter valued at about $31,000. Headlands Technologies LLC boosted its holdings in Kennametal by 80.7% during the 2nd quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company's stock valued at $35,000 after acquiring an additional 682 shares during the period. Finally, Smartleaf Asset Management LLC grew its position in Kennametal by 142.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company's stock valued at $48,000 after acquiring an additional 1,228 shares in 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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