Kennametal Inc. Declares Quarterly Dividend of $0.20 (NYSE:KMT)

Key Points

• Kennametal declared a quarterly dividend of $0.20 per share, payable on May 26 to shareholders of record on May 12. The dividend implies an annualized yield of about 2.2%.
• The company’s dividend appears well covered, with a 59.7% payout ratio and analysts expecting future earnings to support continued payments. Kennametal is expected to earn $3.32 per share next year, which would lower the payout ratio to about 24.1%.
• Kennametal also reported stronger-than-expected quarterly results, posting $0.77 EPS versus a $0.68 consensus and revenue of $592.59 million, up 21.8% year over year. The company raised its FY 2026 guidance to $3.75-$4.00 EPS.

Kennametal Inc. (NYSE:KMT - Get Free Report) announced a quarterly dividend on Tuesday, April 28th. Shareholders of record on Tuesday, May 12th will be paid a dividend of 0.20 per share by the industrial products company on Tuesday, May 26th. This represents a c) dividend on an annualized basis and a yield of 2.2%. The ex-dividend date is Tuesday, May 12th.

Kennametal has a payout ratio of 59.7% meaning its dividend is sufficiently covered by earnings. Analysts expect Kennametal to earn $3.32 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 24.1%.

Kennametal Trading Down 13.5%

Shares of KMT stock opened at $36.09 on Friday. Kennametal has a 52-week low of $17.62 and a 52-week high of $43.81. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.14 and a current ratio of 2.38. The firm has a market capitalization of $2.75 billion, a PE ratio of 20.39, a PEG ratio of 0.35 and a beta of 1.44. The stock has a fifty day simple moving average of $38.20 and a two-hundred day simple moving average of $33.11.

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 (EPS) 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 during the quarter, compared to analyst estimates of $568.03 million. During the same quarter in the prior year, the business posted $0.47 EPS. Kennametal's revenue for the quarter was up 21.8% compared to the same quarter last year. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. On average, analysts predict that Kennametal will post 3.91 EPS for the current fiscal year.

Insider Activity

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

Institutional Trading of Kennametal

Several institutional investors and hedge funds have recently modified their holdings of the stock. PNC Financial Services Group Inc. raised its stake in shares of Kennametal by 106.9% during the first quarter. PNC Financial Services Group Inc. now owns 12,808 shares of the industrial products company's stock valued at $463,000 after acquiring an additional 6,617 shares in the last quarter. Advisors Preferred LLC bought a new stake in shares of Kennametal during the first quarter valued at approximately $3,249,000. Hillsdale Investment Management Inc. raised its stake in shares of Kennametal by 3,567.9% during the first quarter. Hillsdale Investment Management Inc. now owns 10,270 shares of the industrial products company's stock valued at $371,000 after acquiring an additional 9,990 shares in the last quarter. Calamos Advisors LLC bought a new stake in shares of Kennametal during the first quarter valued at approximately $2,337,000. Finally, Diversify Wealth Management LLC bought a new stake in shares of Kennametal during the first quarter valued at approximately $328,000.

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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