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

Key Points

• Kennametal Inc. has received a consensus recommendation of "Reduce" from nine research firms, with three analysts rating it as a sell and six as a hold. The average 12-month target price is set at $24.00.
• The company reported a 32% decline in earnings per share for the last quarter, posting $0.34, missing the consensus estimate of $0.40, with revenues also down 4.9% year-over-year.
• Kennametal announced a quarterly dividend of $0.20 per share, with a dividend yield of 3.7% and a payout ratio of 66.67%.

Kennametal Inc. (NYSE:KMT - Get Free Report) has received a consensus recommendation of "Reduce" from the nine research firms that are currently covering the firm, MarketBeat reports. Three analysts have rated the stock with a sell recommendation and six have given a hold recommendation to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $24.00.

A number of brokerages have recently issued reports on KMT. JPMorgan Chase & Co. cut their price objective on shares of Kennametal from $23.00 to $20.00 and set an "underweight" rating for the company in a research report on Thursday, August 7th. Zacks Research upgraded Kennametal to a "strong sell" rating in a research report on Monday, August 11th. UBS Group upgraded Kennametal from a "sell" rating to a "neutral" rating and upped their price target for the stock from $19.00 to $21.00 in a research report on Friday, August 15th. Loop Capital reaffirmed a "hold" rating and issued a $24.00 price objective (up previously from $21.00) on shares of Kennametal in a research note on Wednesday, June 25th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Kennametal in a research note on Saturday, September 27th.

Kennametal Price Performance

NYSE KMT opened at $21.89 on Friday. The company has a 50-day moving average price of $21.62 and a 200-day moving average price of $21.61. Kennametal has a 52 week low of $17.30 and a 52 week high of $32.18. The company has a quick ratio of 1.19, a current ratio of 2.46 and a debt-to-equity ratio of 0.45. The firm has a market capitalization of $1.66 billion, a P/E ratio of 18.24, a PEG ratio of 3.84 and a beta of 1.46.

Kennametal (NYSE:KMT - Get Free Report) last announced its earnings results on Wednesday, August 6th. The industrial products company reported $0.34 earnings per share (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 business had revenue of $516.45 million for the quarter, compared to the consensus estimate of $527.52 million. During the same quarter last year, the firm posted $0.49 earnings per share. The business's quarterly revenue was down 4.9% compared to the same quarter last year. Equities research analysts anticipate that Kennametal will post 1.17 earnings per share for the current year.

Kennametal Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 26th. Shareholders of record on Tuesday, August 12th were given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date was Tuesday, August 12th. Kennametal's dividend payout ratio is presently 66.67%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Brandes Investment Partners LP boosted its holdings in Kennametal by 65.9% in the 2nd quarter. Brandes Investment Partners LP now owns 8,154,119 shares of the industrial products company's stock worth $187,219,000 after buying an additional 3,238,093 shares during the period. Bridgeway Capital Management LLC purchased a new position in shares of Kennametal in the first quarter valued at about $11,801,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of Kennametal by 63.2% in the second quarter. Arrowstreet Capital Limited Partnership now owns 1,381,379 shares of the industrial products company's stock worth $31,716,000 after acquiring an additional 534,978 shares during the period. Apollo Management Holdings L.P. purchased a new stake in shares of Kennametal during the second quarter worth about $8,794,000. Finally, Russell Investments Group Ltd. grew its position in shares of Kennametal by 828.9% during the second quarter. Russell Investments Group Ltd. now owns 414,132 shares of the industrial products company's stock worth $9,509,000 after purchasing an additional 369,548 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.

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