Kennametal Inc. (NYSE:KMT) Given Average Rating of "Reduce" by Analysts

Key Points

• Kennametal Inc. (NYSE:KMT) currently holds an average consensus rating of "Reduce" from eight brokerages, with three analysts recommending a sell and five a hold.
• The company reported a quarterly EPS of $0.34, missing estimates by $0.06, and its revenue decreased by 4.9% compared to the previous year.
• Kennametal has announced a quarterly dividend of $0.20 per share, reflecting a 3.8% annualized yield with a payout ratio of 66.67%.

Shares of Kennametal Inc. (NYSE:KMT - Get Free Report) have earned a consensus rating of "Reduce" from the eight brokerages that are covering the company, Marketbeat.com reports. Three investment analysts have rated the stock with a sell recommendation and five have issued a hold recommendation on the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $24.00.

KMT has been the subject of several recent analyst reports. Loop Capital reiterated a "hold" rating and issued a $24.00 price objective (up from $21.00) on shares of Kennametal in a report on Wednesday, June 25th. Wall Street Zen upgraded shares of Kennametal from a "hold" rating to a "buy" rating in a report on Friday, May 16th. UBS Group upgraded shares of Kennametal from a "sell" rating to a "neutral" rating and increased their price objective for the company from $19.00 to $21.00 in a report on Friday. Zacks Research upgraded shares of Kennametal to a "strong sell" rating in a report on Monday, August 11th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Kennametal from $23.00 to $20.00 and set an "underweight" rating for the company in a report on Thursday, August 7th.

Hedge Funds Weigh In On Kennametal

Institutional investors have recently added to or reduced their stakes in the company. Mackenzie Financial Corp grew its position in shares of Kennametal by 557.1% during the 1st quarter. Mackenzie Financial Corp now owns 77,877 shares of the industrial products company's stock worth $1,659,000 after buying an additional 66,025 shares during the period. Janney Montgomery Scott LLC grew its position in shares of Kennametal by 17.8% during the 1st quarter. Janney Montgomery Scott LLC now owns 13,242 shares of the industrial products company's stock worth $282,000 after buying an additional 2,000 shares during the period. GAMMA Investing LLC grew its position in shares of Kennametal by 699.1% during the 1st quarter. GAMMA Investing LLC now owns 11,651 shares of the industrial products company's stock worth $248,000 after buying an additional 10,193 shares during the period. Invesco Ltd. grew its position in shares of Kennametal by 4.1% during the 4th quarter. Invesco Ltd. now owns 426,083 shares of the industrial products company's stock worth $10,235,000 after buying an additional 16,926 shares during the period. Finally, Envestnet Asset Management Inc. grew its position in shares of Kennametal by 219.5% during the 1st quarter. Envestnet Asset Management Inc. now owns 57,481 shares of the industrial products company's stock worth $1,224,000 after buying an additional 39,492 shares during the period.

Kennametal Price Performance

Shares of KMT opened at $21.07 on Friday. The stock has a fifty day moving average price of $23.27 and a 200 day moving average price of $21.87. The company has a market cap of $1.60 billion, a P/E ratio of 17.56, a PEG ratio of 3.53 and a beta of 1.44. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.46 and a quick ratio of 1.19. Kennametal has a 12 month low of $17.30 and a 12 month high of $32.18.

Kennametal (NYSE:KMT - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.06). Kennametal had a net margin of 4.73% and a return on equity of 8.09%. The firm had revenue of $516.45 million during the quarter, compared to analyst estimates of $527.52 million. During the same quarter in the previous year, the business posted $0.49 EPS. Kennametal's revenue for the quarter was down 4.9% compared to the same quarter last year. On average, research analysts forecast that Kennametal will post 1.17 earnings per share for the current year.

Kennametal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 26th. Stockholders of record on Tuesday, August 12th will be given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 3.8%. The ex-dividend date is Tuesday, August 12th. Kennametal's payout ratio is 66.67%.

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.

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