Kennametal (NYSE:KMT) Stock Price Down 9.6% - What's Next?

Key Points

• Kennametal shares fell 9.6% intraday, trading as low as $38.12—declines attributed to post-earnings profit-taking and a Jefferies downgrade.
• The company beat Q3 estimates with $0.77 EPS vs. $0.68 expected and revenue up 21.8%, and it set FY2026 guidance of 3.75–4.00 EPS, underscoring stronger fundamentals.
• Analyst and investor signals are mixed: several firms raised price targets while consensus ratings lean toward Hold (average target $36.93), insiders have sold shares, and institutions have been adding to positions.

Shares of Kennametal Inc. (NYSE:KMT - Get Free Report) traded down 9.6% on Friday . The stock traded as low as $38.12 and last traded at $37.6980. 1,237,639 shares changed hands during mid-day trading, a decline of 14% from the average session volume of 1,433,939 shares. The stock had previously closed at $41.71.

Trending Headlines about Kennametal

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Kennametal beat fiscal Q3 estimates on pricing and volume; sales rose ~22% with margin expansion and strength across Earthworks, Energy and Aerospace — management set FY2026 EPS guidance that underpins the improved outlook. Kennametal Q3 Earnings Beat
• Positive Sentiment: Market reaction earlier in the week: shares jumped and the stock reached a new 52-week high after the earnings release, signaling strong investor enthusiasm for the beat. Stock Jumps After Earnings
• Positive Sentiment: Analyst/style commentary: Zacks highlights KMT as a strong value stock and provides style-score support for value-oriented investors, which can attract longer-term buyers. Zacks: Strong Value Stock
• Neutral Sentiment: JPMorgan raised its price target from $37 to $40 but maintained an "underweight" rating — a mixed signal that lifts implied upside modestly but keeps institutional sentiment cautious. JPMorgan Price Target Change
• Neutral Sentiment: Several transcripts and earnings snapshots (earnings call, Yahoo/Seeking Alpha coverage) provide detail on margin drivers and end-market demand — useful for investors digging into durability of the beat but not new catalyst by themselves. Earnings Call Transcript
• Neutral Sentiment: Zacks published a comparative piece on Kennametal vs. Sandvik (SDVKY) for value investors — useful context but not an immediate price catalyst. KMT vs SDVKY Comparison
• Negative Sentiment: Jefferies downgraded Kennametal, which likely sparked some of today's pullback as investors trim positions after the post-earnings run. Jefferies Downgrade

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Weiss Ratings upgraded Kennametal from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, April 29th. UBS Group raised their price objective on shares of Kennametal from $32.00 to $39.00 and gave the stock a "neutral" rating in a report on Thursday, February 5th. JPMorgan Chase & Co. boosted their target price on shares of Kennametal from $37.00 to $40.00 and gave the company an "underweight" rating in a research note on Thursday. Barclays increased their target price on shares of Kennametal from $28.00 to $40.00 and gave the company an "equal weight" rating in a research report on Monday, February 9th. Finally, Jefferies Financial Group cut shares of Kennametal from a "buy" rating to a "hold" rating and set a $47.50 price target on the stock. in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Kennametal has an average rating of "Hold" and an average target price of $36.93.

Kennametal Stock Performance

The firm has a market capitalization of $2.84 billion, a PE ratio of 21.05, a P/E/G ratio of 0.68 and a beta of 1.44. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.38 and a quick ratio of 1.14. The company's fifty day simple moving average is $38.20 and its 200 day simple moving average is $33.11.

Kennametal (NYSE:KMT - Get Free Report) last announced its quarterly earnings results 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 net margin of 6.41% and a return on equity of 11.02%. The company had revenue of $592.59 million for the quarter, compared to analysts' expectations of $568.03 million. During the same period in the prior year, the company posted $0.47 EPS. Kennametal's revenue was up 21.8% compared to the same quarter last year. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, equities research analysts expect that Kennametal Inc. will post 2.43 EPS for the current fiscal year.

Kennametal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Tuesday, May 12th will be issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Tuesday, May 12th. Kennametal's dividend payout ratio (DPR) is presently 45.20%.

Insiders Place Their Bets

In related news, VP John Wayne Witt sold 5,060 shares of the stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $38.29, for a total transaction of $193,747.40. Following the sale, the vice president owned 1,634 shares of the company's stock, valued at approximately $62,565.86. This represents a 75.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Carlonda R. Reilly sold 13,410 shares of Kennametal stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $36.31, for a total value of $486,917.10. Following the transaction, the vice president directly owned 38,746 shares of the company's stock, valued at $1,406,867.26. The trade was a 25.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.43% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in KMT. American Century Companies Inc. boosted its stake in Kennametal by 44.0% during the third quarter. American Century Companies Inc. now owns 4,221,461 shares of the industrial products company's stock valued at $88,355,000 after buying an additional 1,289,624 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in Kennametal by 36.6% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,887,048 shares of the industrial products company's stock worth $39,496,000 after acquiring an additional 505,669 shares during the last quarter. Medina Value Partners LLC raised its holdings in shares of Kennametal by 72.7% in the 4th quarter. Medina Value Partners LLC now owns 968,294 shares of the industrial products company's stock valued at $27,509,000 after acquiring an additional 407,487 shares in the last quarter. UBS Group AG boosted its position in shares of Kennametal by 190.1% during the 4th quarter. UBS Group AG now owns 538,321 shares of the industrial products company's stock valued at $15,294,000 after acquiring an additional 352,726 shares during the last quarter. Finally, Marshall Wace LLP grew its holdings in shares of Kennametal by 776.9% during the fourth quarter. Marshall Wace LLP now owns 375,839 shares of the industrial products company's stock worth $10,678,000 after purchasing an additional 332,981 shares in 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.

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