Kennametal Inc. to Issue Quarterly Dividend of $0.20 (NYSE:KMT)

Kennametal Inc. (NYSE:KMT - Get Free Report) declared a quarterly dividend on Tuesday, April 30th, Zacks reports. Shareholders of record on Tuesday, May 14th will be paid a dividend of 0.20 per share by the industrial products company on Tuesday, May 28th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.08%. The ex-dividend date of this dividend is Monday, May 13th.

Kennametal has a payout ratio of 48.2% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Kennametal to earn $1.59 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 50.3%.

Kennametal Stock Down 0.3 %

Shares of NYSE:KMT traded down $0.07 during trading on Friday, hitting $25.96. The company's stock had a trading volume of 697,855 shares, compared to its average volume of 719,507. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.06 and a current ratio of 2.42. Kennametal has a fifty-two week low of $22.08 and a fifty-two week high of $30.60. The stock's 50-day moving average price is $24.41 and its two-hundred day moving average price is $24.39. The company has a market capitalization of $2.06 billion, a PE ratio of 19.23, a PEG ratio of 3.54 and a beta of 1.76.

Kennametal (NYSE:KMT - Get Free Report) last released its quarterly earnings results on Wednesday, May 8th. The industrial products company reported $0.30 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.01). Kennametal had a return on equity of 9.35% and a net margin of 5.29%. The business had revenue of $515.80 million during the quarter, compared to analyst estimates of $518.50 million. During the same quarter last year, the firm posted $0.39 EPS. The company's revenue was down 3.8% compared to the same quarter last year. As a group, sell-side analysts expect that Kennametal will post 1.47 EPS for the current year.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Barclays boosted their price objective on Kennametal from $24.00 to $25.00 and gave the company an "equal weight" rating in a report on Thursday. JPMorgan Chase & Co. lowered their price objective on Kennametal from $26.00 to $24.00 and set an "underweight" rating for the company in a report on Thursday, February 8th. Finally, StockNews.com raised Kennametal from a "hold" rating to a "buy" rating in a report on Friday. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the stock. According to data from MarketBeat.com, Kennametal currently has an average rating of "Hold" and a consensus price target of $24.75.

Kennametal declared that its board has approved a stock buyback program on Wednesday, February 7th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the industrial products company to reacquire up to 10.6% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Insider Activity

In other news, VP John Wayne Witt sold 1,000 shares of the company's stock in a transaction that occurred on Thursday, March 7th. The stock was sold at an average price of $25.55, for a total transaction of $25,550.00. Following the completion of the transaction, the vice president now directly owns 1,343 shares of the company's stock, valued at $34,313.65. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.61% of the company's stock.

About Kennametal

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.