DA Davidson Weighs in on Kadant's Q3 Earnings (NYSE:KAI)

Key Points

• DA Davidson estimates Kadant's Q3 2025 earnings per share at $2.22, with a "Neutral" rating and a price target of $300.00.
• Kadant has announced a quarterly dividend of $0.34 per share, with a 0.4% dividend yield, set to be paid on August 7th.
• Recently, several brokerages have issued mixed ratings on Kadant, with Barrington Research maintaining an "outperform" rating and a price target of $380.00.

Kadant Inc (NYSE:KAI - Free Report) - Investment analysts at DA Davidson issued their Q3 2025 earnings per share (EPS) estimates for shares of Kadant in a report issued on Tuesday, August 5th. DA Davidson analyst K. Yinger expects that the industrial products company will post earnings of $2.22 per share for the quarter. DA Davidson currently has a "Neutral" rating and a $300.00 target price on the stock. The consensus estimate for Kadant's current full-year earnings is $9.97 per share.

Kadant (NYSE:KAI - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The industrial products company reported $2.31 EPS for the quarter, topping analysts' consensus estimates of $1.94 by $0.37. The firm had revenue of $255.27 million during the quarter, compared to the consensus estimate of $245.99 million. Kadant had a net margin of 10.34% and a return on equity of 12.62%. The firm's revenue was down 7.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.81 earnings per share.

A number of other brokerages also recently commented on KAI. Barrington Research restated an "outperform" rating and issued a $380.00 target price on shares of Kadant in a research note on Tuesday, July 29th. Wall Street Zen upgraded Kadant from a "sell" rating to a "hold" rating in a research report on Saturday, July 5th.

Kadant Stock Performance

Shares of NYSE KAI traded up $1.25 during midday trading on Wednesday, hitting $326.89. The company's stock had a trading volume of 70,831 shares, compared to its average volume of 105,718. The company has a debt-to-equity ratio of 0.26, a quick ratio of 4.97 and a current ratio of 2.38. Kadant has a 1-year low of $281.30 and a 1-year high of $429.95. The firm's fifty day moving average price is $325.16 and its 200-day moving average price is $334.44. The firm has a market cap of $3.85 billion, a P/E ratio of 36.40 and a beta of 1.24.

Hedge Funds Weigh In On Kadant

Hedge funds and other institutional investors have recently made changes to their positions in the business. Champlain Investment Partners LLC boosted its position in Kadant by 249.0% during the 1st quarter. Champlain Investment Partners LLC now owns 160,800 shares of the industrial products company's stock worth $54,175,000 after acquiring an additional 114,732 shares during the period. Vanguard Group Inc. raised its stake in shares of Kadant by 9.4% during the first quarter. Vanguard Group Inc. now owns 1,332,583 shares of the industrial products company's stock valued at $448,961,000 after purchasing an additional 114,310 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in Kadant in the fourth quarter worth about $39,400,000. Conestoga Capital Advisors LLC grew its position in Kadant by 97.9% in the 1st quarter. Conestoga Capital Advisors LLC now owns 221,209 shares of the industrial products company's stock valued at $74,528,000 after buying an additional 109,439 shares in the last quarter. Finally, GAMMA Investing LLC grew its position in Kadant by 150,885.2% in the 1st quarter. GAMMA Investing LLC now owns 81,532 shares of the industrial products company's stock valued at $27,469,000 after buying an additional 81,478 shares in the last quarter. 96.13% of the stock is currently owned by institutional investors and hedge funds.

Kadant announced that its Board of Directors has approved a stock buyback program on Thursday, May 15th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the industrial products company to buy up to 1.3% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its shares are undervalued.

Kadant Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 7th. Stockholders of record on Thursday, July 10th were given a dividend of $0.34 per share. The ex-dividend date was Thursday, July 10th. This represents a $1.36 annualized dividend and a dividend yield of 0.4%. Kadant's payout ratio is currently 15.14%.

Kadant Company Profile

Kadant Inc supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems.