Kennametal Inc. (NYSE:KMT) Given Consensus Recommendation of "Reduce" by Brokerages

Key Points

• Analyst sentiment is cautious: Kennametal has a consensus rating of “Reduce” from nine brokerages, with three sell ratings and six hold ratings. The average 12-month price target is about $37.36.
• Recent earnings were stronger than expected: The company reported $0.77 EPS on revenue of $592.59 million, both above estimates, and revenue rose 21.8% year over year. Kennametal also guided FY2026 EPS to a range of 3.75 to 4.00.
• Insiders have been selling shares: Two vice presidents recently sold stock, and insiders have sold 47,000 shares worth about $1.58 million over the last 90 days. Insiders currently own 1.43% of the company.

Shares of Kennametal Inc. (NYSE:KMT - Get Free Report) have earned an average recommendation of "Reduce" from the nine ratings firms that are presently covering the stock, Marketbeat.com reports. Three equities research analysts have rated the stock with a sell recommendation and six have given a hold recommendation to the company. The average 1 year price target among brokers that have covered the stock in the last year is $37.3571.

Several research firms have recently weighed in on KMT. DA Davidson began coverage on Kennametal in a report on Tuesday, June 16th. They issued a "neutral" rating and a $34.00 price objective for the company. JPMorgan Chase & Co. lifted their target price on shares of Kennametal from $37.00 to $40.00 and gave the company an "underweight" rating in a report on Thursday, May 7th. Zacks Research downgraded shares of Kennametal from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 11th. Jefferies Financial Group downgraded shares of Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price objective on the stock. in a research report on Thursday, May 7th. Finally, Barclays lowered shares of Kennametal from an "equal weight" rating to an "underweight" rating and dropped their price objective for the company from $40.00 to $33.00 in a research note on Wednesday, May 27th.

Kennametal Stock Performance

NYSE KMT traded down $1.03 during trading hours on Tuesday, hitting $33.19. The company had a trading volume of 29,749 shares, compared to its average volume of 1,408,169. The business has a 50 day moving average of $35.59 and a 200-day moving average of $35.70. The company has a market cap of $2.53 billion, a PE ratio of 18.89, a price-to-earnings-growth ratio of 0.21 and a beta of 1.36. Kennametal has a 1-year low of $17.62 and a 1-year high of $43.81. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.99 and a current ratio of 2.38.

Kennametal (NYSE:KMT - Get Free Report) last posted its earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.09. The business had revenue of $592.59 million during the quarter, compared to the consensus estimate of $568.03 million. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.The business's quarterly revenue was up 21.8% on a year-over-year basis. During the same period in the previous year, the business earned $0.47 EPS. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, equities research analysts expect that Kennametal will post 3.23 EPS for the current year.

Kennametal Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, May 26th. Shareholders of record on Tuesday, May 12th were paid a dividend of $0.20 per share. The ex-dividend date of this dividend was Tuesday, May 12th. This represents a $0.80 annualized dividend and a yield of 2.4%. Kennametal's dividend payout ratio is currently 45.20%.

Insiders Place Their Bets

In other Kennametal news, VP Judith L. Bacchus sold 5,488 shares of Kennametal stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $35.94, for a total value of $197,238.72. Following the transaction, the vice president directly owned 4,554 shares in the company, valued at approximately $163,670.76. This trade represents a 54.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Carlonda R. Reilly sold 12,013 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total value of $397,870.56. Following the completion of the transaction, the vice president directly owned 25,143 shares in the company, valued at approximately $832,736.16. The trade was a 32.33% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 47,000 shares of company stock valued at $1,583,326. 1.43% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kennametal

Hedge funds have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP lifted its holdings in Kennametal by 2.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,750,538 shares of the industrial products company's stock valued at $134,964,000 after acquiring an additional 96,888 shares during the period. State Street Corp lifted its stake in shares of Kennametal by 0.3% in the fourth quarter. State Street Corp now owns 2,899,770 shares of the industrial products company's stock valued at $82,382,000 after purchasing an additional 9,963 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in Kennametal by 15.4% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,298,349 shares of the industrial products company's stock worth $83,039,000 after buying an additional 307,209 shares in the last quarter. Wellington Management Group LLP grew its position in Kennametal by 20.7% during the third quarter. Wellington Management Group LLP now owns 1,546,374 shares of the industrial products company's stock worth $32,366,000 after buying an additional 265,664 shares during the period. Finally, Deprince Race & Zollo Inc. increased its holdings in Kennametal by 3.7% in the fourth quarter. Deprince Race & Zollo Inc. now owns 1,343,451 shares of the industrial products company's stock valued at $38,167,000 after buying an additional 47,839 shares in the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.