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

Key Points

• Kennametal has a consensus analyst rating of “Reduce”, with three sell ratings and six hold ratings across nine covering firms. The average 12-month price target is about $35.93.
• The company’s latest quarterly results beat expectations, with EPS of $0.77 versus $0.68 expected and revenue of $592.6 million versus $568.0 million estimated. Revenue rose 21.8% year over year, and Kennametal reaffirmed FY2026 EPS guidance of $3.75–$4.00.
• Recent activity included a quarterly dividend of $0.20 per share and notable insider selling, including transactions by VP Carlonda R. Reilly and Director Sagar A. Patel. The stock traded around $34.55, below its 50-day moving average of $36.56.

Kennametal Inc. (NYSE:KMT - Get Free Report) has earned a consensus recommendation of "Reduce" from the nine research firms that are currently covering the firm, MarketBeat reports. Three research analysts have rated the stock with a sell recommendation and six have given a hold recommendation to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $35.9286.

KMT has been the topic of a number of research reports. JPMorgan Chase & Co. raised their price target on Kennametal from $37.00 to $40.00 and gave the stock an "underweight" rating in a report on Thursday, May 7th. Zacks Research lowered Kennametal from a "strong-buy" rating to a "hold" rating in a report on Monday, May 11th. Barclays lowered Kennametal from an "equal weight" rating to an "underweight" rating and lowered their price target for the stock from $40.00 to $33.00 in a report on Wednesday, May 27th. Jefferies Financial Group lowered Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price target on the stock. in a report on Thursday, May 7th. Finally, Weiss Ratings lowered Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 20th.

Kennametal Stock Performance

Shares of KMT stock opened at $34.55 on Friday. The stock's 50-day moving average is $36.56 and its two-hundred day moving average is $34.86. The firm has a market cap of $2.63 billion, a price-to-earnings ratio of 19.52, a PEG ratio of 0.21 and a beta of 1.37. 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 issued its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.09. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.The company had revenue of $592.59 million for the quarter, compared to analyst estimates of $568.03 million. During the same quarter last year, the company posted $0.47 earnings per share. The business's quarterly revenue was up 21.8% compared to the same quarter last year. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. Analysts predict that Kennametal will post 2.99 earnings per share for the current year.

Kennametal Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Tuesday, May 12th were issued a dividend of $0.20 per share. The ex-dividend date of this dividend was Tuesday, May 12th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.3%. Kennametal's dividend payout ratio (DPR) is currently 45.20%.

Insider Transactions at Kennametal

In related news, VP Carlonda R. Reilly sold 12,013 shares of the firm's stock in a transaction dated 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 sale, the vice president owned 25,143 shares in the company, valued at $832,736.16. This trade represents a 32.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Sagar A. Patel sold 29,499 shares of the firm's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $33.50, for a total transaction of $988,216.50. The SEC filing for this sale provides additional information. Company insiders own 1.43% of the company's stock.

Institutional Investors Weigh In On Kennametal

A number of hedge funds have recently added to or reduced their stakes in KMT. Royal Bank of Canada lifted its position in Kennametal by 17.7% in the first quarter. Royal Bank of Canada now owns 30,474 shares of the industrial products company's stock valued at $649,000 after purchasing an additional 4,578 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Kennametal by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 46,307 shares of the industrial products company's stock valued at $986,000 after purchasing an additional 2,013 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Kennametal by 13.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 240,556 shares of the industrial products company's stock valued at $5,124,000 after purchasing an additional 28,020 shares during the period. Jane Street Group LLC lifted its position in Kennametal by 39.3% in the first quarter. Jane Street Group LLC now owns 229,903 shares of the industrial products company's stock valued at $4,897,000 after purchasing an additional 64,907 shares during the period. Finally, Norges Bank acquired a new stake in Kennametal in the second quarter valued at about $585,000.

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.

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