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

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) announced a quarterly dividend on Thursday, July 31st, Wall Street Journal reports. Shareholders 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) annualized dividend and a yield of 3.2%. The ex-dividend date is Tuesday, August 12th.

Kennametal has a payout ratio of 59.7% indicating that its dividend is sufficiently covered by earnings. 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 Price Performance

NYSE:KMT traded up $0.38 during trading hours on Monday, hitting $24.74. 63,334 shares of the stock were exchanged, compared to its average volume of 1,013,096. Kennametal has a 52-week low of $17.30 and a 52-week high of $32.18. The firm's fifty day moving average price is $23.28 and its 200 day moving average price is $22.02. The company has a current ratio of 2.44, a quick ratio of 1.10 and a debt-to-equity ratio of 0.47. The company has a market cap of $1.89 billion, a P/E ratio of 17.78, a P/E/G ratio of 3.28 and a beta of 1.44.

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

Analysts Set New Price Targets

Several research analysts have recently weighed in on KMT shares. Barclays boosted their target price on Kennametal from $22.00 to $24.00 and gave the stock an "equal weight" rating in a report on Monday, May 12th. Morgan Stanley boosted their target price on Kennametal from $20.00 to $21.00 and gave the stock an "equal weight" rating in a report on Monday, May 12th. Wall Street Zen upgraded Kennametal from a "hold" rating to a "buy" rating in a report on Friday, May 16th. Finally, Loop Capital restated a "hold" rating and set a $24.00 target price (up from $21.00) on shares of Kennametal in a report on Wednesday, June 25th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat, Kennametal has a consensus rating of "Hold" and a consensus target price of $25.40.

Kennametal Company Profile

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.