Kennametal (NYSE:KMT) Shares Gap Up Following Better-Than-Expected Earnings

Kennametal Inc. (NYSE:KMT - Get Free Report) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $19.82, but opened at $21.25. Kennametal shares last traded at $19.68, with a volume of 272,032 shares changing hands.

The industrial products company reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.26 by $0.21. The business had revenue of $486.40 million for the quarter, compared to analysts' expectations of $489.30 million. Kennametal had a net margin of 4.76% and a return on equity of 8.12%. The business's revenue was down 5.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.30 earnings per share.

Kennametal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 27th. Stockholders of record on Tuesday, May 13th will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.65%. The ex-dividend date of this dividend is Tuesday, May 13th. Kennametal's payout ratio is 57.55%.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on KMT. Barclays increased their price target on shares of Kennametal from $22.00 to $24.00 and gave the company an "equal weight" rating in a report on Monday. StockNews.com upgraded shares of Kennametal from a "hold" rating to a "buy" rating in a research report on Monday, April 28th. Finally, Morgan Stanley increased their price objective on shares of Kennametal from $20.00 to $21.00 and gave the company an "equal weight" rating in a research report on Monday. One analyst has rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $25.80.

Insiders Place Their Bets

In other news, CEO Sanjay Chowbey acquired 10,000 shares of Kennametal stock in a transaction dated Tuesday, February 11th. The stock was purchased at an average cost of $21.75 per share, with a total value of $217,500.00. Following the completion of the purchase, the chief executive officer now directly owns 77,595 shares in the company, valued at approximately $1,687,691.25. This trade represents a 14.79% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 1.41% of the company's stock.

Institutional Trading of Kennametal

A number of hedge funds and other institutional investors have recently modified their holdings of the company. GAMMA Investing LLC increased its stake in shares of Kennametal by 45.9% in the fourth quarter. GAMMA Investing LLC now owns 1,458 shares of the industrial products company's stock worth $35,000 after purchasing an additional 459 shares in the last quarter. SummerHaven Investment Management LLC grew its stake in Kennametal by 1.8% during the first quarter. SummerHaven Investment Management LLC now owns 34,150 shares of the industrial products company's stock valued at $727,000 after acquiring an additional 600 shares in the last quarter. Sei Investments Co. grew its stake in Kennametal by 1.8% during the fourth quarter. Sei Investments Co. now owns 34,614 shares of the industrial products company's stock valued at $831,000 after acquiring an additional 609 shares in the last quarter. Inspire Investing LLC grew its stake in Kennametal by 3.8% during the fourth quarter. Inspire Investing LLC now owns 18,512 shares of the industrial products company's stock valued at $445,000 after acquiring an additional 672 shares in the last quarter. Finally, Blue Trust Inc. grew its stake in Kennametal by 120.9% during the fourth quarter. Blue Trust Inc. now owns 1,308 shares of the industrial products company's stock valued at $34,000 after acquiring an additional 716 shares in the last quarter.

Kennametal Stock Up 5.3%

The company has a market capitalization of $1.67 billion, a PE ratio of 17.96, a PEG ratio of 3.69 and a beta of 1.39. The company's 50 day moving average is $20.25 and its two-hundred day moving average is $23.48. The company has a quick ratio of 1.13, a current ratio of 2.53 and a debt-to-equity ratio of 0.47.

Kennametal Company Profile

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.