Kennametal Inc. (KMT) Downgraded to Sell at Zacks Investment Research
According to Zacks, “We believe that the positive impacts from Kennametal's organic and inorganic growth strategies as well as cost-reduction programs are more than offset by the negative impacts of near-term headwinds. For fiscal 2017, the company anticipates revenue to be flat compared with roughly $2 billion generated in fiscal 2016. Organic revenue is projected to decline 2% to grow roughly 2% while adjusted earnings are expected within $1.10-$1.40 per share. Also, the company is exposed to risks arising from foreign currency translation, stiff competition, high debt levels and uncertain economic conditions.”
Several other equities research analysts also recently commented on KMT. Jefferies Group restated a buy rating and issued a $30.00 price target on shares of Kennametal in a research report on Sunday, July 17th. Credit Suisse Group AG restated a hold rating on shares of Kennametal in a research report on Saturday, July 9th. Barrington Research upped their price target on shares of Kennametal from $28.00 to $31.00 and gave the company an outperform rating in a research report on Wednesday, August 3rd. Seaport Global Securities downgraded shares of Kennametal from an accumulate rating to a neutral rating and set a $28.00 price target for the company. in a research report on Thursday, August 18th. Finally, Bank of America Corp. downgraded shares of Kennametal from a neutral rating to an underperform rating in a research report on Thursday, July 7th. Four research analysts have rated the stock with a sell rating, five have given a hold rating and two have given a buy rating to the company’s stock. The company has an average rating of Hold and a consensus target price of C$24.44.
Shares of Kennametal (NYSE:KMT) opened at 29.29 on Tuesday. The company has a 50-day moving average of $28.20 and a 200-day moving average of $25.02. The firm’s market cap is $2.33 billion. Kennametal has a 12 month low of $15.11 and a 12 month high of $29.87.
Kennametal (NYSE:KMT) last released its earnings results on Tuesday, August 2nd. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.43 by $0.01. Kennametal had a negative net margin of 10.77% and a positive return on equity of 7.51%. The business earned $521.20 million during the quarter, compared to analyst estimates of $519.51 million. During the same period in the prior year, the business earned $0.46 earnings per share. The business’s quarterly revenue was down 18.3% on a year-over-year basis. Equities analysts forecast that Kennametal will post $1.26 EPS for the current fiscal year.
Several hedge funds and other institutional investors have recently made changes to their positions in KMT. Los Angeles Capital Management & Equity Research Inc. increased its stake in Kennametal by 118.8% in the first quarter. Los Angeles Capital Management & Equity Research Inc. now owns 98,592 shares of the company’s stock valued at $2,217,000 after buying an additional 53,532 shares in the last quarter. JPMorgan Chase & Co. increased its stake in Kennametal by 582.9% in the second quarter. JPMorgan Chase & Co. now owns 368,799 shares of the company’s stock valued at $8,154,000 after buying an additional 314,796 shares in the last quarter. Prudential Financial Inc. increased its stake in Kennametal by 54.8% in the first quarter. Prudential Financial Inc. now owns 126,764 shares of the company’s stock valued at $2,851,000 after buying an additional 44,900 shares in the last quarter. HBK Investments L P purchased a new stake in Kennametal during the first quarter valued at about $2,411,000. Finally, Riverhead Capital Management LLC increased its stake in Kennametal by 907.7% in the first quarter. Riverhead Capital Management LLC now owns 190,461 shares of the company’s stock valued at $4,283,000 after buying an additional 171,561 shares in the last quarter. Institutional investors own 97.66% of the company’s stock.
Kennametal Inc (Kennametal) is a supplier of tooling, engineered components and advanced materials consumed in production processes. The Company manages and reports its business in two segments: Industrial and Infrastructure. The Company provides wear-resistant products, application engineering and services backed by material science, serving customers across diverse sectors of industrial production, transportation, earthworks, energy, infrastructure and aerospace.
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