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

Key Points

• Kennametal has a consensus analyst rating of "Reduce" based on nine covering analysts, with two sells, six holds, and one buy. The average 12-month price target is about $36.93.
• The company reported strong quarterly results, posting EPS of $0.77 versus estimates of $0.68 and revenue of $592.6 million, topping expectations and rising 21.8% year over year.
• Kennametal also announced a quarterly dividend of $0.20 per share, or $0.80 annually, for a yield of about 2.3%. Several executives have recently sold shares, while institutional investors showed mixed activity.

Shares of Kennametal Inc. (NYSE:KMT - Get Free Report) have been assigned a consensus rating of "Reduce" from the nine analysts that are covering the company, Marketbeat.com reports. Two investment analysts have rated the stock with a sell rating, six have given a hold rating and one has issued a buy rating on the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $36.9286.

A number of equities research analysts have recently issued reports on KMT shares. JPMorgan Chase & Co. boosted their price target on shares of Kennametal from $37.00 to $40.00 and gave the company an "underweight" rating in a report on Thursday, May 7th. Morgan Stanley boosted their price target on shares of Kennametal from $29.00 to $36.00 and gave the company an "equal weight" rating in a report on Tuesday, February 10th. The Goldman Sachs Group set a $32.00 price target on shares of Kennametal in a report on Friday, February 6th. Barclays boosted their price target on shares of Kennametal from $28.00 to $40.00 and gave the company an "equal weight" rating in a report on Monday, February 9th. Finally, Jefferies Financial Group lowered shares of Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price target on the stock. in a report on Thursday, May 7th.

Kennametal Stock Down 0.1%

KMT stock opened at $34.63 on Monday. Kennametal has a 12 month low of $17.62 and a 12 month high of $43.81. The firm has a 50 day simple moving average of $37.60 and a 200 day simple moving average of $33.65. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.38 and a quick ratio of 0.99. The firm has a market cap of $2.64 billion, a PE ratio of 19.56, a P/E/G ratio of 0.22 and a beta of 1.44.

Kennametal (NYSE:KMT - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.68 by $0.09. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The business had revenue of $592.59 million for the quarter, compared to analyst estimates of $568.03 million. During the same quarter in the previous year, the business earned $0.47 earnings per share. The firm's revenue was up 21.8% compared to the same quarter last year. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. Equities research analysts forecast that Kennametal will post 2.99 earnings per share for the current fiscal year.

Kennametal Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 26th. Shareholders of record on Tuesday, May 12th will be paid a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 2.3%. The ex-dividend date is Tuesday, May 12th. Kennametal's dividend payout ratio is currently 45.20%.

Insider Activity at Kennametal

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

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Rockefeller Capital Management L.P. increased its stake in Kennametal by 3,600.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company's stock valued at $28,000 after buying an additional 972 shares during the period. Kohmann Bosshard Financial Services LLC acquired a new position in Kennametal in the 4th quarter valued at approximately $28,000. Danske Bank A S acquired a new position in Kennametal in the 4th quarter valued at approximately $31,000. Hantz Financial Services Inc. increased its stake in Kennametal by 350.2% in the 3rd quarter. Hantz Financial Services Inc. now owns 1,373 shares of the industrial products company's stock valued at $29,000 after buying an additional 1,068 shares during the period. Finally, Headlands Technologies LLC increased its stake in Kennametal by 80.7% in the 2nd quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company's stock valued at $35,000 after buying an additional 682 shares during the period.

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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