Kennametal (NYSE:KMT) Given New $31.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley cut Kennametal’s price target from $36 to $31 and kept an equal weight rating, implying about 8% downside from the current share price.
• The stock fell 5.2% to $33.69, while multiple other analysts have also turned more cautious; the consensus rating is now “Reduce” with an average target of $35.79.
• Kennametal recently beat quarterly expectations, reporting $0.77 EPS on $592.6 million in revenue, but insiders have been selling shares and the stock remains below its 50-day and 200-day moving averages.

Kennametal (NYSE:KMT - Get Free Report) had its price objective dropped by equities research analysts at Morgan Stanley from $36.00 to $31.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the industrial products company's stock. Morgan Stanley's price objective would indicate a potential downside of 8.00% from the company's current price.

KMT has been the topic of several other reports. Barclays cut Kennametal from an "equal weight" rating to an "underweight" rating and reduced their price target for the stock from $40.00 to $33.00 in a report on Wednesday, May 27th. Zacks Research lowered Kennametal from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. Weiss Ratings cut Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 20th. DA Davidson began coverage on Kennametal in a research report on Tuesday, June 16th. They set a "neutral" rating and a $34.00 price objective for the company. Finally, Jefferies Financial Group cut Kennametal from a "buy" rating to a "hold" rating and set a $47.50 target price on the stock. in a report on Thursday, May 7th. Six investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $35.79.

Kennametal Stock Down 5.2%

Shares of KMT stock traded down $1.84 during trading on Friday, reaching $33.69. The company's stock had a trading volume of 653,066 shares, compared to its average volume of 1,376,964. The company has a quick ratio of 0.99, a current ratio of 2.38 and a debt-to-equity ratio of 0.43. The business has a fifty day moving average price of $34.67 and a 200-day moving average price of $35.98. The company has a market cap of $2.57 billion, a price-to-earnings ratio of 19.03, a price-to-earnings-growth ratio of 0.22 and a beta of 1.36. Kennametal has a one year low of $17.62 and a one year high of $43.81.

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 analysts' consensus estimates of $0.68 by $0.09. The company had revenue of $592.59 million during the quarter, compared to analysts' expectations of $568.03 million. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.The business's revenue was up 21.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.47 earnings per share. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. Analysts anticipate that Kennametal will post 3.23 earnings per share for the current year.

Insider Transactions at Kennametal

In other news, VP Judith L. Bacchus sold 5,488 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $35.94, for a total value of $197,238.72. Following the completion of the sale, the vice president directly owned 4,554 shares of the company's stock, valued at $163,670.76. This represents a 54.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Carlonda R. Reilly sold 12,013 shares of the firm's stock in a transaction that occurred on 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 transaction, the vice president owned 25,143 shares in the company, valued at $832,736.16. This represents a 32.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 47,000 shares of company stock valued at $1,583,326 over the last ninety days. 1.43% of the stock is currently owned by insiders.

Institutional Trading of Kennametal

Institutional investors and hedge funds have recently made changes to their positions in the company. LSV Asset Management purchased a new position in shares of Kennametal in the 4th quarter worth approximately $2,290,000. Medina Value Partners LLC raised its stake in shares of Kennametal by 72.7% during the 4th quarter. Medina Value Partners LLC now owns 968,294 shares of the industrial products company's stock worth $27,509,000 after purchasing an additional 407,487 shares during the period. Steel Grove Capital Advisors LLC purchased a new position in shares of Kennametal in the 4th quarter worth about $1,911,000. UBS Group AG increased its holdings in Kennametal by 190.1% during the fourth quarter. UBS Group AG now owns 538,321 shares of the industrial products company's stock worth $15,294,000 after buying an additional 352,726 shares during the last quarter. Finally, SG Americas Securities LLC raised its position in Kennametal by 3,273.8% in the fourth quarter. SG Americas Securities LLC now owns 274,260 shares of the industrial products company's stock worth $7,792,000 after acquiring an additional 266,131 shares during the period.

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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