Kennametal Inc. (NYSE:KMT) to Issue Quarterly Dividend of $0.20

Key Points

• Kennametal declared a quarterly dividend of $0.20 per share, payable August 25 to shareholders of record on August 11. The dividend equates to $0.80 annually and a 2.4% yield.
• The company reported quarterly EPS of $2.96, beating expectations of $2.31, while revenue rose 42.6% year over year to $736.61 million. Its dividend appears supported by earnings, with a 59.7% payout ratio.
• Analyst sentiment remains cautious: six analysts rate the stock Hold and three rate it Sell, producing an average “Reduce” rating and a $35.79 price target.

Kennametal Inc. (NYSE:KMT - Get Free Report) announced a quarterly dividend on Tuesday, July 28th. Investors of record on Tuesday, August 11th will be paid a dividend of 0.20 per share by the industrial products company on Tuesday, August 25th. This represents a c) dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, August 11th.

Kennametal has a dividend payout ratio of 59.7% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Kennametal to earn $1.86 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 43.0%.

Kennametal Price Performance

Shares of KMT stock opened at $33.11 on Friday. The stock's 50-day moving average is $34.38 and its 200 day moving average is $36.37. Kennametal has a 1-year low of $19.80 and a 1-year high of $43.81. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.62 and a quick ratio of 0.99. The company has a market cap of $2.52 billion, a P/E ratio of 7.52, a PEG ratio of 0.34 and a beta of 1.36.

Kennametal (NYSE:KMT - Get Free Report) last announced its earnings results on Wednesday, August 5th. The industrial products company reported $2.96 EPS for the quarter, topping analysts' consensus estimates of $2.31 by $0.65. The business had revenue of $736.61 million during the quarter, compared to the consensus estimate of $725.74 million. Kennametal had a net margin of 14.53% and a return on equity of 24.83%. The firm's revenue was up 42.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.34 earnings per share. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. Research analysts predict that Kennametal will post 4.65 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

KMT has been the topic of a number of analyst reports. Morgan Stanley cut their price objective on shares of Kennametal from $36.00 to $31.00 and set an "equal weight" rating on the stock in a research report on Friday, July 17th. Zacks Research cut shares of Kennametal from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 14th. Barclays downgraded shares of Kennametal from an "equal weight" rating to an "underweight" rating and lowered their target price for the company from $40.00 to $33.00 in a research note on Wednesday, May 27th. Weiss Ratings lowered shares of Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 20th. Finally, JPMorgan Chase & Co. reduced their price target on Kennametal from $40.00 to $34.00 and set an "underweight" rating on the stock in a research report on Monday, July 13th. Six investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Kennametal has an average rating of "Reduce" and an average price target of $35.79.

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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