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

Key Points

• Analysts have a bearish-to-neutral view of Kennametal: nine brokerages give the stock a consensus “Reduce” rating, with three sells and six holds. The average 12-month price target is $35.79, only modestly above the cited $34.03 share price.
• Several firms recently cut their ratings or price targets, including JPMorgan, Barclays, Jefferies, and Morgan Stanley; targets now range from $31 to $47.50.
• Kennametal exceeded quarterly expectations with $0.77 in adjusted earnings per share versus a $0.68 consensus estimate and revenue of $592.6 million, up 21.8% year over year. However, insiders sold 47,000 shares worth about $1.58 million over the past 90 days.

Shares of Kennametal Inc. (NYSE:KMT - Get Free Report) have earned a consensus recommendation of "Reduce" from the nine ratings firms that are covering the firm, Marketbeat Ratings reports. Three analysts have rated the stock with a sell recommendation and six have issued a hold recommendation on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $35.7857.

A number of equities research analysts recently commented on the company. JPMorgan Chase & Co. decreased their target price on Kennametal from $40.00 to $34.00 and set an "underweight" rating on the stock in a research report on Monday, July 13th. Jefferies Financial Group cut Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price target for the company. in a report on Thursday, May 7th. Barclays downgraded Kennametal from an "equal weight" rating to an "underweight" rating and reduced their price objective for the stock from $40.00 to $33.00 in a research note on Wednesday, May 27th. DA Davidson began coverage on Kennametal in a report on Tuesday, June 16th. They set a "neutral" rating and a $34.00 price objective on the stock. Finally, Morgan Stanley lowered their target price on Kennametal from $36.00 to $31.00 and set an "equal weight" rating for the company in a research report on Friday, July 17th.

Kennametal Stock Performance

Shares of NYSE KMT opened at $34.03 on Friday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.99 and a current ratio of 2.38. The company has a market cap of $2.59 billion, a P/E ratio of 19.22, a P/E/G ratio of 0.46 and a beta of 1.36. The firm's fifty day moving average is $34.43 and its two-hundred day moving average is $36.33. Kennametal has a 52-week low of $17.62 and a 52-week high of $43.81.

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

Insider Buying and Selling

In related news, VP Carlonda R. Reilly sold 12,013 shares of the company's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total transaction of $397,870.56. Following the sale, the vice president owned 25,143 shares of the company's stock, valued at $832,736.16. This represents a 32.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Judith L. Bacchus sold 5,488 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $35.94, for a total transaction of $197,238.72. Following the transaction, the vice president owned 4,554 shares of the company's stock, valued at $163,670.76. This trade represents a 54.65% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 47,000 shares of company stock worth $1,583,326. Insiders own 1.43% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP increased its stake in Kennametal by 2.1% during the fourth quarter. Dimensional Fund Advisors LP now owns 4,750,538 shares of the industrial products company's stock worth $134,964,000 after acquiring an additional 96,888 shares during the last quarter. State Street Corp lifted its stake in shares of Kennametal by 0.3% in the 4th 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 last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of Kennametal by 15.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,298,349 shares of the industrial products company's stock valued at $83,039,000 after purchasing an additional 307,209 shares during the last quarter. Wellington Management Group LLP boosted its holdings in shares of Kennametal by 20.7% in the 3rd quarter. Wellington Management Group LLP now owns 1,546,374 shares of the industrial products company's stock worth $32,366,000 after purchasing an additional 265,664 shares during the period. Finally, Deprince Race & Zollo Inc. boosted its holdings in shares of Kennametal by 3.7% in the 4th quarter. Deprince Race & Zollo Inc. now owns 1,343,451 shares of the industrial products company's stock worth $38,167,000 after purchasing an additional 47,839 shares during the period.

Kennametal Company Profile

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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