Kennametal (NYSE:KMT) Lowered to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded Kennametal from strong-buy to hold, adding to a broader trend of cautious analyst sentiment. The stock now carries a consensus rating of Reduce with an average target price of $36.50.
• Kennametal recently reported better-than-expected quarterly results, posting EPS of $0.77 versus estimates of $0.68 and revenue of $592.59 million versus $568.03 million. Revenue rose 21.8% year over year, and the company set FY2026 guidance at $3.75 to $4.00 EPS.
• Shares were trading around $34.80, near the company’s 50-day average, with a market cap of $2.65 billion. Recent insider selling and mixed institutional activity were also noted, including VP share sales and additional holdings by several large funds.

Kennametal (NYSE:KMT - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday,Zacks.com reports.

KMT has been the subject of a number of other research reports. Barclays lowered 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. DA Davidson assumed coverage on Kennametal in a research report on Tuesday, June 16th. They issued a "neutral" rating and a $34.00 price objective for the company. Jefferies Financial Group lowered Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price objective for the company. in a research note on Thursday, May 7th. JPMorgan Chase & Co. lowered their price target on shares of Kennametal from $40.00 to $34.00 and set an "underweight" rating for the company in a report on Monday. Finally, Weiss Ratings lowered shares of Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 20th. Six investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $36.50.

Kennametal Stock Performance

Shares of NYSE KMT opened at $34.80 on Tuesday. Kennametal has a 1-year low of $17.62 and a 1-year high of $43.81. The company has a current ratio of 2.38, a quick ratio of 0.99 and a debt-to-equity ratio of 0.43. The stock's 50-day moving average is $34.79 and its 200 day moving average is $35.93. The stock has a market cap of $2.65 billion, a price-to-earnings ratio of 19.66, a P/E/G ratio of 0.22 and a beta of 1.36.

Kennametal (NYSE:KMT - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.68 by $0.09. The firm had revenue of $592.59 million for the quarter, compared to the consensus estimate of $568.03 million. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The business's revenue was up 21.8% compared to the same quarter last year. During the same period last year, the firm posted $0.47 earnings per share. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. On average, sell-side analysts anticipate that Kennametal will post 3.23 EPS for the current fiscal year.

Insider Buying and Selling at Kennametal

In other news, VP Judith L. Bacchus sold 5,488 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were 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 approximately $163,670.76. This trade represents a 54.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Carlonda R. Reilly sold 12,013 shares of Kennametal stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total transaction of $397,870.56. Following the sale, the vice president directly owned 25,143 shares in the company, valued at $832,736.16. The trade was a 32.33% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 47,000 shares of company stock valued at $1,583,326. 1.43% of the stock is currently owned by company insiders.

Institutional Trading of Kennametal

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Dimensional Fund Advisors LP boosted its position in Kennametal by 2.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,750,538 shares of the industrial products company's stock valued at $134,964,000 after acquiring an additional 96,888 shares in the last quarter. State Street Corp raised its position in shares of Kennametal by 0.3% in the 4th quarter. State Street Corp now owns 2,899,770 shares of the industrial products company's stock worth $82,382,000 after acquiring an additional 9,963 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of Kennametal by 15.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,298,349 shares of the industrial products company's stock valued at $83,039,000 after purchasing an additional 307,209 shares during the period. Wellington Management Group LLP lifted its stake in shares of Kennametal by 20.7% in the 3rd quarter. Wellington Management Group LLP now owns 1,546,374 shares of the industrial products company's stock valued at $32,366,000 after purchasing an additional 265,664 shares during the period. Finally, Deprince Race & Zollo Inc. boosted its position in shares of Kennametal by 3.7% during the fourth quarter. Deprince Race & Zollo Inc. now owns 1,343,451 shares of the industrial products company's stock valued at $38,167,000 after purchasing an additional 47,839 shares in the last quarter.

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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