Key Points
- CFO Patrick Watson bought 2,000 Kennametal shares at an average of $23.50, investing $47,000 and increasing his direct holding by 2.07% to 98,523 shares.
- Kennametal reported quarterly EPS of $3.48, beating the $2.65 consensus, while revenue of $768.19 million came in slightly below estimates; revenue was up 54.3% year over year.
- Analysts’ consensus rating was “Reduce,” with an average price target of $33.07. The company also announced a quarterly dividend of $0.20 per share, equivalent to a 3.3% yield.
Kennametal Inc. (NYSE:KMT - Get Free Report) CFO Patrick Watson acquired 2,000 shares of the stock in a transaction that occurred on Friday, November 6th. The shares were bought at an average cost of $23.50 per share, for a total transaction of $47,000.00. Following the completion of the transaction, the chief financial officer directly owned 98,523 shares of the company's stock, valued at $2,315,290.50. This represents a 2.07% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink.
Kennametal Stock Up 5.5%
KMT stock opened at $24.27 on Tuesday. Kennametal Inc. has a 12-month low of $22.65 and a 12-month high of $43.81. The company has a quick ratio of 0.98, a current ratio of 3.45 and a debt-to-equity ratio of 0.59. The company has a market cap of $1.85 billion, a price-to-earnings ratio of 3.20, a PEG ratio of 0.24 and a beta of 1.30. The company has a 50 day moving average of $30.00 and a two-hundred day moving average of $34.37.
Kennametal (NYSE:KMT - Get Free Report) last issued its earnings results on Wednesday, November 4th. The industrial products company reported $3.48 EPS for the quarter, beating analysts' consensus estimates of $2.65 by $0.83. The firm had revenue of $768.19 million for the quarter, compared to the consensus estimate of $770.36 million. Kennametal had a return on equity of 38.40% and a net margin of 22.49%. The business's quarterly revenue was up 54.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.34 earnings per share. On average, equities analysts anticipate that Kennametal Inc. will post 5.18 earnings per share for the current fiscal year.
Kennametal Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 23rd. Investors of record on Monday, November 9th will be paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Monday, November 9th. Kennametal's dividend payout ratio (DPR) is presently 10.55%.
Institutional Trading of Kennametal
Several institutional investors have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in Kennametal in the 2nd quarter valued at $440,446,000. Arrowstreet Capital Limited Partnership raised its stake in Kennametal by 15.4% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,298,349 shares of the industrial products company's stock worth $83,039,000 after acquiring an additional 307,209 shares in the last quarter. William Blair Investment Management LLC bought a new position in shares of Kennametal during the second quarter valued at $69,614,000. Medina Value Partners LLC bought a new position in shares of Kennametal during the second quarter valued at $43,007,296. Finally, NFJ Investment Group LLC acquired a new stake in shares of Kennametal in the 2nd quarter valued at $36,202,000.
Wall Street Analysts Forecast Growth
A number of research analysts have weighed in on KMT shares. DA Davidson cut their target price on shares of Kennametal from $34.00 to $30.00 and set a "neutral" rating for the company in a research report on Tuesday, August 11th. JPMorgan Chase & Co. decreased their price target on shares of Kennametal from $30.00 to $27.00 and set an "underweight" rating for the company in a report on Thursday, November 5th. UBS Group lowered their price target on Kennametal from $39.00 to $35.00 and set a "neutral" rating on the stock in a research report on Monday, August 10th. Zacks Research lowered Kennametal from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, October 14th. Finally, Weiss Ratings cut Kennametal from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, October 23rd. Five equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $33.07.
Read Our Latest Stock Report on KMT
About Kennametal
(
Get Free Report)
Kennametal Inc is an industrial technology company that develops and manufactures metal-cutting tools, tooling systems, and wear-resistant products. Its products use materials such as tungsten carbide and advanced ceramics to help customers machine components and protect equipment used in demanding operating conditions.
The company serves industries including aerospace, transportation, energy, general engineering, and earthworks. Its products and services include cutting tools and related tooling, engineered components, and wear solutions for industrial applications.
Founded in 1938 as McKenna Metals, Kennametal has grown into a global business serving customers across multiple regions.
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