Kennametal Inc. (NYSE:KMT) Receives $24.00 Consensus Target Price 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 given a consensus rating of "Reduce" by the eight research firms that are currently covering the firm, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a sell recommendation and five have issued a hold recommendation on the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $24.00.

KMT has been the topic of several recent analyst reports. UBS Group upgraded shares of Kennametal from a "sell" rating to a "neutral" rating and upped their price objective for the stock from $19.00 to $21.00 in a report on Friday, August 15th. JPMorgan Chase & Co. decreased their price objective on shares of Kennametal from $23.00 to $20.00 and set an "underweight" rating on the stock in a report on Thursday, August 7th. Zacks Research upgraded shares of Kennametal to a "strong sell" rating in a report on Monday, August 11th. Finally, Loop Capital reiterated a "hold" rating and set a $24.00 target price (up from $21.00) on shares of Kennametal in a report on Wednesday, June 25th.

Kennametal Trading Down 1.4%

Shares of KMT stock traded down $0.29 during trading hours on Wednesday, hitting $20.79. The company had a trading volume of 677,751 shares, compared to its average volume of 836,018. The company's fifty day moving average is $22.70 and its 200 day moving average is $21.67. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.46 and a quick ratio of 1.19. Kennametal has a fifty-two week low of $17.30 and a fifty-two week high of $32.18. The stock has a market capitalization of $1.58 billion, a PE ratio of 17.33, a price-to-earnings-growth ratio of 3.65 and a beta of 1.44.

Kennametal (NYSE:KMT - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The industrial products company reported $0.34 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 during the quarter, compared to analyst estimates of $527.52 million. During the same quarter in the prior year, the company posted $0.49 earnings per share. The business's revenue was down 4.9% compared to the same quarter last year. Research analysts expect that Kennametal will post 1.17 earnings per share for the current fiscal year.

Kennametal Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 26th. Shareholders of record on Tuesday, August 12th were issued a dividend of $0.20 per share. The ex-dividend date 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 is 66.67%.

Institutional Investors Weigh In On Kennametal

Hedge funds have recently added to or reduced their stakes in the business. Ameritas Advisory Services LLC acquired a new stake in Kennametal during the 2nd quarter worth approximately $27,000. Headlands Technologies LLC lifted its holdings in 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 buying an additional 682 shares in the last quarter. Nomura Asset Management Co. Ltd. lifted its holdings in Kennametal by 116.2% during the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 1,600 shares of the industrial products company's stock worth $37,000 after buying an additional 860 shares in the last quarter. Curat Global LLC acquired a new stake in Kennametal during the 1st quarter worth approximately $35,000. Finally, Parallel Advisors LLC lifted its holdings in Kennametal by 107.6% during the 1st quarter. Parallel Advisors LLC now owns 1,958 shares of the industrial products company's stock worth $42,000 after buying an additional 1,015 shares in the last quarter.

Kennametal Company Profile

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.