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

Key Points

• Kennametal Inc. declared a quarterly dividend of $0.20 per share, with an annualized yield of 3.2%, payable on August 26th to investors of record on August 12th.
• The company has a current dividend payout ratio of 59.7%, indicating its earnings adequately cover the dividend, with projections showing continued ability to meet this obligation.
• Kennametal reported $0.47 earnings per share for the last quarter, exceeding estimates, although revenue fell by 5.7% year-over-year to $486.40 million.

Kennametal Inc. (NYSE:KMT - Get Free Report) declared a quarterly dividend on Thursday, July 31st, Wall Street Journal reports. Investors of record on Tuesday, August 12th will be given a dividend of 0.20 per share by the industrial products company on Tuesday, August 26th. This represents a c) dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Tuesday, August 12th.

Kennametal has a dividend payout ratio of 59.7% meaning its dividend is sufficiently covered by earnings. Research analysts expect Kennametal to earn $1.37 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 58.4%.

Kennametal Stock Performance

Shares of KMT stock traded down $0.41 during trading on Friday, reaching $24.35. 1,156,434 shares of the company's stock were exchanged, compared to its average volume of 786,589. The company has a quick ratio of 1.10, a current ratio of 2.44 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $1.86 billion, a PE ratio of 17.52, a PEG ratio of 3.28 and a beta of 1.44. Kennametal has a twelve month low of $17.30 and a twelve month high of $32.18. The firm's fifty day moving average price is $23.28 and its 200-day moving average price is $22.04.

Kennametal (NYSE:KMT - Get Free Report) last issued its quarterly earnings data on Wednesday, May 7th. The industrial products company reported $0.47 EPS for the quarter, beating analysts' consensus estimates of $0.26 by $0.21. Kennametal had a return on equity of 9.12% and a net margin of 5.45%. The firm had revenue of $486.40 million for the quarter, compared to analyst estimates of $489.30 million. During the same period in the prior year, the firm posted $0.30 EPS. The company's revenue for the quarter was down 5.7% on a year-over-year basis. As a group, sell-side analysts anticipate that Kennametal will post 1.17 EPS for the current year.

Hedge Funds Weigh In On Kennametal

Several large investors have recently bought and sold shares of KMT. SummerHaven Investment Management LLC raised its position in shares of Kennametal by 1.8% during the first quarter. SummerHaven Investment Management LLC now owns 34,150 shares of the industrial products company's stock worth $727,000 after acquiring an additional 600 shares during the last quarter. Sei Investments Co. lifted its stake in shares of Kennametal by 1.8% in the fourth quarter. Sei Investments Co. now owns 34,614 shares of the industrial products company's stock worth $831,000 after acquiring an additional 609 shares during the period. State of New Jersey Common Pension Fund D increased its holdings in Kennametal by 1.0% in the second quarter. State of New Jersey Common Pension Fund D now owns 88,508 shares of the industrial products company's stock worth $2,032,000 after purchasing an additional 855 shares in the last quarter. Bank of Montreal Can increased its holdings in Kennametal by 10.5% in the fourth quarter. Bank of Montreal Can now owns 9,437 shares of the industrial products company's stock worth $227,000 after purchasing an additional 898 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Kennametal by 2.2% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 44,294 shares of the industrial products company's stock worth $1,064,000 after purchasing an additional 934 shares in the last quarter.

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.