Kennametal Inc. (NYSE:KMT) Given Average Rating of “Reduce” by Brokerages

Kennametal Inc. (NYSE:KMT) has been assigned a consensus recommendation of “Reduce” from the five research firms that are presently covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation and three have given a hold recommendation to the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $24.17.

KMT has been the topic of several recent research reports. Loop Capital raised their target price on shares of Kennametal from $23.00 to $24.00 and gave the company a “hold” rating in a research note on Thursday, May 23rd. StockNews.com raised Kennametal from a “hold” rating to a “buy” rating in a research report on Friday, May 10th. Finally, Barclays boosted their price target on Kennametal from $24.00 to $25.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 9th.

Insider Activity

In related news, CEO Sanjay Chowbey bought 5,000 shares of Kennametal stock in a transaction that occurred on Monday, June 10th. The shares were acquired at an average cost of $24.28 per share, for a total transaction of $121,400.00. Following the completion of the acquisition, the chief executive officer now directly owns 49,270 shares of the company’s stock, valued at approximately $1,196,275.60. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.61% of the company’s stock.

Institutional Trading of Kennametal

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brandes Investment Partners LP raised its holdings in Kennametal by 1,186.7% during the fourth quarter. Brandes Investment Partners LP now owns 890,034 shares of the industrial products company’s stock worth $22,954,000 after buying an additional 820,864 shares during the last quarter. Norges Bank bought a new position in Kennametal in the 4th quarter valued at about $15,400,000. Wellington Management Group LLP boosted its stake in Kennametal by 7.8% during the 4th quarter. Wellington Management Group LLP now owns 4,240,814 shares of the industrial products company’s stock valued at $109,371,000 after purchasing an additional 305,542 shares during the last quarter. Azarias Capital Management L.P. bought a new stake in Kennametal during the 1st quarter worth approximately $4,795,000. Finally, Burgundy Asset Management Ltd. raised its stake in shares of Kennametal by 3.7% in the fourth quarter. Burgundy Asset Management Ltd. now owns 4,852,273 shares of the industrial products company’s stock worth $125,140,000 after purchasing an additional 173,023 shares during the last quarter.

Kennametal Stock Performance

NYSE:KMT opened at $23.77 on Monday. The firm’s 50-day moving average is $24.81 and its 200-day moving average is $24.78. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.09 and a current ratio of 2.42. The company has a market cap of $1.87 billion, a price-to-earnings ratio of 17.61, a PEG ratio of 2.40 and a beta of 1.72. Kennametal has a 52-week low of $22.08 and a 52-week high of $30.60.

Kennametal (NYSE:KMT) last posted its earnings results on Wednesday, May 8th. The industrial products company reported $0.30 earnings per share 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 firm had revenue of $515.80 million during the quarter, compared to the consensus estimate of $518.50 million. During the same period in the previous year, the company posted $0.39 EPS. The firm’s revenue for the quarter was down 3.8% compared to the same quarter last year. Equities research analysts anticipate that Kennametal will post 1.47 earnings per share for the current year.

Kennametal Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, May 28th. Investors of record on Tuesday, May 14th were issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 3.37%. The ex-dividend date of this dividend was Monday, May 13th. Kennametal’s dividend payout ratio (DPR) is 59.26%.

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.