Kennametal (NYSE:KMT) Shares Gap Down - Should You Sell?

Key Points

• Kennametal shares gapped down from a prior close of $35.53 to an open of $33.10, reflecting a sharp negative move in early trading.
• Analysts have turned more cautious on the stock, with multiple recent downgrades and a consensus rating of “Reduce”; the average price target now sits at $36.50.
• Despite the selloff, Kennametal recently beat quarterly earnings and revenue estimates, but insider selling has been notable, including a director and VP trimming positions in recent weeks.

Kennametal Inc. (NYSE:KMT - Get Free Report) shares gapped down prior to trading on Friday . The stock had previously closed at $35.53, but opened at $33.10. Kennametal shares last traded at $33.9680, with a volume of 233,304 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. Barclays downgraded Kennametal from an "equal weight" rating to an "underweight" rating and lowered their price objective for the stock from $40.00 to $33.00 in a research report on Wednesday, May 27th. JPMorgan Chase & Co. reduced their target price on shares of Kennametal from $40.00 to $34.00 and set an "underweight" rating on the stock in a report on Monday. Jefferies Financial Group downgraded shares of Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price target for the company. in a research note on Thursday, May 7th. Weiss Ratings cut shares of Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 20th. Finally, Zacks Research downgraded shares of Kennametal from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. Six equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $36.50.

Kennametal Price Performance

The stock has a fifty day simple moving average of $34.67 and a 200-day simple moving average of $35.98. The company has a market capitalization of $2.54 billion, a PE ratio of 18.81, a P/E/G ratio of 0.22 and a beta of 1.36. The company has a current ratio of 2.38, a quick ratio of 0.99 and a debt-to-equity ratio of 0.43.

Kennametal (NYSE:KMT - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $0.77 EPS for the quarter, beating analysts' consensus estimates of $0.68 by $0.09. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.The business had revenue of $592.59 million for the quarter, compared to the consensus estimate of $568.03 million. During the same quarter in the prior year, the business posted $0.47 EPS. The business's revenue for the quarter was up 21.8% on a year-over-year basis. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. Equities analysts anticipate that Kennametal Inc. will post 3.23 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. Shareholders of record on Tuesday, May 12th were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 2.4%. The ex-dividend date was Tuesday, May 12th. Kennametal's dividend payout ratio is currently 45.20%.

Insiders Place Their Bets

In other news, VP Judith L. Bacchus sold 5,488 shares of the company's stock in a transaction on 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 transaction, the vice president owned 4,554 shares in the company, valued at approximately $163,670.76. This represents a 54.65% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Sagar A. Patel sold 29,499 shares of the stock in a transaction on Monday, June 8th. The shares were sold at an average price of $33.50, for a total transaction of $988,216.50. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 47,000 shares of company stock valued at $1,583,326. 1.43% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Kennametal

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Kohmann Bosshard Financial Services LLC acquired a new stake in shares of Kennametal during the fourth quarter worth about $28,000. Rockefeller Capital Management L.P. boosted its position in shares of Kennametal by 3,600.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 972 shares during the period. Danske Bank A S purchased a new position in Kennametal during the 4th quarter worth approximately $31,000. Headlands Technologies LLC grew its stake 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 during the last quarter. Finally, Smartleaf Asset Management LLC grew its stake in Kennametal by 142.3% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company's stock worth $48,000 after buying an additional 1,228 shares during the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.