Kennametal (NYSE:KMT) Shares Break Above 50 Day Moving Average - Here's What Happened

Key Points

• Kennametal shares rose 1.7%, trading as high as $33.64 and breaking above the 50-day moving average of $30.98.
• Analyst sentiment remains cautious: the stock carries a “Reduce” consensus rating, with four Holds, four Sells, and one Strong Buy; the average price target is $34.07.
• The company exceeded quarterly expectations with $2.96 EPS versus $2.31 forecast and $736.6 million in revenue, while maintaining a quarterly dividend of $0.20 per share, or a 2.4% yield.

Kennametal Inc. (NYSE:KMT - Get Free Report)'s share price crossed above its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $30.98 and traded as high as $33.64. Kennametal shares last traded at $33.4290, with a volume of 1,324,441 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Morgan Stanley cut Kennametal from an "equal weight" rating to an "underweight" rating and lowered their price target for the company from $31.00 to $27.00 in a research note on Monday, August 10th. Zacks Research upgraded shares of Kennametal from a "hold" rating to a "strong-buy" rating in a report on Tuesday, September 15th. UBS Group reduced their price objective on shares of Kennametal from $39.00 to $35.00 and set a "neutral" rating for the company in a research note on Monday, August 10th. DA Davidson decreased their price objective on shares of Kennametal from $34.00 to $30.00 and set a "neutral" rating for the company in a report on Tuesday, August 11th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Kennametal in a research report on Monday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Reduce" and an average target price of $34.07.

Kennametal Stock Up 1.7%

The stock has a market cap of $2.55 billion, a P/E ratio of 7.60, a P/E/G ratio of 0.32 and a beta of 1.33. The company has a current ratio of 2.62, a quick ratio of 0.98 and a debt-to-equity ratio of 0.42. The firm's fifty day moving average is $30.98 and its 200 day moving average is $34.11.

Kennametal (NYSE:KMT - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $2.96 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.31 by $0.65. Kennametal had a net margin of 14.53% and a return on equity of 24.83%. The company had revenue of $736.61 million during the quarter, compared to analysts' expectations of $725.74 million. During the same period in the prior year, the company earned $0.34 earnings per share. The business's quarterly revenue was up 42.6% compared to the same quarter last year. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. As a group, equities research analysts forecast that Kennametal Inc. will post 4.92 EPS for the current year.

Kennametal Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th were given a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 2.4%. The ex-dividend date was Tuesday, August 11th. Kennametal's dividend payout ratio (DPR) is currently 18.18%.

Insider Activity

In related news, VP Judith Bacchus sold 9,676 shares of the stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $30.29, for a total value of $293,086.04. Following the completion of the sale, the vice president owned 15,721 shares in the company, valued at approximately $476,189.09. This trade represents a 38.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Sanjay Chowbey bought 7,000 shares of the firm's stock in a transaction that occurred on Thursday, September 10th. The shares were purchased at an average cost of $29.10 per share, for a total transaction of $203,700.00. Following the completion of the transaction, the chief executive officer owned 246,839 shares of the company's stock, valued at $7,183,014.90. This represents a 2.92% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 1.65% of the company's stock.

Institutional Trading of Kennametal

A number of institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. bought a new stake in Kennametal in the second quarter valued at about $440,446,000. Arrowstreet Capital Limited Partnership raised its holdings 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 worth $83,039,000 after buying an additional 307,209 shares in the last quarter. William Blair Investment Management LLC bought a new position in shares of Kennametal during the 2nd quarter worth approximately $69,614,000. Medina Value Partners LLC bought a new position in shares of Kennametal during the 2nd quarter worth approximately $43,007,296. Finally, NFJ Investment Group LLC acquired a new stake in Kennametal in the 2nd quarter valued at $36,202,000.

About Kennametal

Kennametal Inc NYSE: KMT is an industrial technology company that develops and manufactures tooling, engineered components, and wear-resistant solutions. Its products are designed to help customers machine, shape, and protect materials used in demanding industrial applications.

The company's offerings include cutting tools and tooling systems for metalworking, as well as engineered components, advanced materials, and surface technologies intended to improve durability and performance.

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