Kadant (NYSE:KAI) Price Target Raised to $300.00

Key Points

• DA Davidson has raised Kadant's price target from $275.00 to $300.00, maintaining a "neutral" rating despite a potential downside of 8.52% from the previous close.
• Kadant reported earnings of $2.31 EPS for the last quarter, surpassing estimates, but revenue decreased by 7.3% compared to the same quarter last year.
• The company has initiated a share buyback plan allowing repurchase of up to $50 million in shares, indicating management's belief that the stock is undervalued.

Kadant (NYSE:KAI - Get Free Report) had its target price boosted by DA Davidson from $275.00 to $300.00 in a research report issued on Monday,Benzinga reports. The firm currently has a "neutral" rating on the industrial products company's stock. DA Davidson's target price points to a potential downside of 8.32% from the stock's previous close. DA Davidson also issued estimates for Kadant's Q3 2025 earnings at $2.22 EPS, FY2025 earnings at $9.18 EPS and FY2026 earnings at $10.13 EPS.

Other research analysts have also recently issued reports about the company. Wall Street Zen raised Kadant from a "sell" rating to a "hold" rating in a research note on Saturday, July 5th. Barrington Research restated an "outperform" rating and set a $380.00 price target on shares of Kadant in a research report on Tuesday, July 29th.

Kadant Price Performance

NYSE KAI traded up $1.59 during trading hours on Monday, reaching $327.23. 9,294 shares of the stock traded hands, compared to its average volume of 145,449. The company has a debt-to-equity ratio of 0.27, a current ratio of 8.17 and a quick ratio of 4.97. The company has a market cap of $3.85 billion, a price-to-earnings ratio of 36.44 and a beta of 1.24. The stock has a 50 day simple moving average of $324.90 and a two-hundred day simple moving average of $334.78. Kadant has a 1 year low of $281.30 and a 1 year high of $429.95.

Kadant (NYSE:KAI - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The industrial products company reported $2.31 EPS for the quarter, beating analysts' consensus estimates of $1.94 by $0.37. The business had revenue of $255.27 million for the quarter, compared to analysts' expectations of $245.99 million. Kadant had a net margin of 10.34% and a return on equity of 12.62%. The business's quarterly revenue was down 7.3% on a year-over-year basis. During the same period last year, the business earned $2.81 earnings per share. On average, analysts predict that Kadant will post 9.97 EPS for the current fiscal year.

Kadant declared that its board has approved a share buyback plan on Thursday, May 15th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the industrial products company to buy up to 1.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Kadant

Several institutional investors and hedge funds have recently added to or reduced their stakes in KAI. Opal Wealth Advisors LLC purchased a new stake in Kadant in the first quarter worth about $30,000. Maseco LLP bought a new position in Kadant during the 2nd quarter valued at approximately $30,000. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new stake in Kadant in the second quarter worth $31,000. Huntington National Bank grew its stake in shares of Kadant by 148.0% in the second quarter. Huntington National Bank now owns 124 shares of the industrial products company's stock worth $39,000 after acquiring an additional 74 shares during the last quarter. Finally, Optimum Investment Advisors raised its position in shares of Kadant by 50.0% in the 1st quarter. Optimum Investment Advisors now owns 150 shares of the industrial products company's stock worth $51,000 after purchasing an additional 50 shares during the last quarter. Hedge funds and other institutional investors own 96.13% of the company's stock.

Kadant Company Profile

Kadant Inc supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems.