Kennametal Inc. (NYSE:KMT) Receives Average Rating of "Reduce" from Analysts

Key Points

• Kennametal Inc. has received a consensus rating of "Reduce" from eight analysts, with three recommending a sell and five a hold, and a 12-month price target of $24.00.
• The company reported a quarterly earnings miss with EPS of $0.34, falling short of the $0.40 estimate, alongside a 4.9% decline in revenue year-over-year.
• Kennametal announced a quarterly dividend of $0.20, translating to an annualized yield of 3.8%, with a dividend payout ratio of 66.67%.

Kennametal Inc. (NYSE:KMT - Get Free Report) has been assigned a consensus recommendation of "Reduce" from the eight analysts that are presently covering the firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a sell rating and five have given a hold rating to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $24.00.

A number of research firms have issued reports on KMT. JPMorgan Chase & Co. lowered their target price on Kennametal from $23.00 to $20.00 and set an "underweight" rating for the company in a report on Thursday, August 7th. Loop Capital reiterated a "hold" rating and set a $24.00 price objective (up from $21.00) on shares of Kennametal in a report on Wednesday, June 25th. UBS Group raised Kennametal from a "sell" rating to a "neutral" rating and lifted their target price for the company from $19.00 to $21.00 in a research report on Friday, August 15th. Zacks Research upgraded Kennametal to a "strong sell" rating in a research note on Monday, August 11th. Finally, Wall Street Zen raised shares of Kennametal from a "hold" rating to a "buy" rating in a research note on Friday, May 16th.

Hedge Funds Weigh In On Kennametal

A number of large investors have recently modified their holdings of the business. Ameritas Advisory Services LLC acquired a new stake in shares of Kennametal in the second quarter valued at about $27,000. Curat Global LLC acquired a new position in shares of Kennametal during the 1st quarter worth approximately $35,000. Headlands Technologies LLC raised its stake in shares of Kennametal by 80.7% during the 2nd quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company's stock worth $35,000 after purchasing an additional 682 shares in the last quarter. Nomura Asset Management Co. Ltd. boosted its holdings in shares of Kennametal by 116.2% in the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 1,600 shares of the industrial products company's stock valued at $37,000 after buying an additional 860 shares during the last quarter. Finally, Parallel Advisors LLC grew its stake in shares of Kennametal by 107.6% in the first quarter. Parallel Advisors LLC now owns 1,958 shares of the industrial products company's stock valued at $42,000 after buying an additional 1,015 shares in the last quarter.

Kennametal Trading Down 1.7%

NYSE KMT opened at $21.07 on Wednesday. The firm has a market cap of $1.60 billion, a P/E ratio of 17.56, a P/E/G ratio of 3.76 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. The stock's 50-day moving average is $22.91 and its 200-day moving average is $21.70. Kennametal has a one year low of $17.30 and a one year high of $32.18.

Kennametal (NYSE:KMT - Get Free Report) last issued its quarterly earnings data 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 return on equity of 8.09% and a net margin of 4.73%.The company had revenue of $516.45 million for the quarter, compared to the consensus estimate of $527.52 million. During the same period in the prior year, the company earned $0.49 EPS. The firm's revenue was down 4.9% on a year-over-year basis. Sell-side analysts anticipate that Kennametal will post 1.17 earnings per share for the current fiscal year.

Kennametal Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 26th. Investors of record on Tuesday, August 12th were given a $0.20 dividend. The ex-dividend date of this dividend was Tuesday, August 12th. This represents a $0.80 dividend on an annualized basis and a yield of 3.8%. Kennametal's dividend payout ratio (DPR) 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.