Kennametal Inc. (NYSE:KMT) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of Kennametal Inc. (NYSE:KMT) from a hold rating to a buy rating in a report released on Friday morning. They currently have $40.00 price objective on the industrial products company’s stock.
According to Zacks, “Over the last one year, Kennametal's shares have outperformed the industry. We believe that the company holds solid organic and inorganic growth opportunities in the long term. Also, it aims at developing sound cost structure by rationalization of certain manufacturing facilities and lowering of costs through employee and cost-reduction programs. By Dec 2018, cost savings are anticipated to be $165-$180 million. In fourth-quarter fiscal 2017, the company's earnings grew 27.3% year over year. Revenues were up 8.4% on the back of organic revenue growth, partially offset by forex woes and fewer business days. For fiscal 2018, the company anticipates adjusted earnings to be within $2.00-$2.30 per share, above $1.52 recorded in fiscal 2017. Organic revenue growth is expected to be within 2-4%.”
Other equities research analysts also recently issued reports about the stock. Barrington Research upped their price objective on shares of Kennametal from $45.00 to $50.00 and gave the company an outperform rating in a report on Thursday, April 27th. Jefferies Group LLC reissued a buy rating and issued a $50.00 price target (up from $47.00) on shares of Kennametal in a report on Saturday, April 29th. BidaskClub downgraded shares of Kennametal from a hold rating to a sell rating in a report on Thursday, July 27th. Wells Fargo & Company raised shares of Kennametal from a market perform rating to an outperform rating and increased their price target for the stock from $26.10 to $43.09 in a report on Friday. Finally, BMO Capital Markets increased their price target on shares of Kennametal from $40.00 to $45.00 and gave the stock a market perform rating in a report on Monday, May 1st. One analyst has rated the stock with a sell rating, five have issued a hold rating and seven have assigned a buy rating to the company’s stock. Kennametal has a consensus rating of Hold and an average target price of $42.74.
Shares of Kennametal (NYSE KMT) traded up 0.27% during mid-day trading on Friday, reaching $36.76. 720,650 shares of the company’s stock traded hands. The firm has a 50-day moving average of $38.53 and a 200 day moving average of $38.36. The company has a market cap of $2.97 billion, a P/E ratio of 60.26 and a beta of 1.89. Kennametal has a 12-month low of $25.18 and a 12-month high of $43.09.
Kennametal (NYSE:KMT) last released its quarterly earnings data on Wednesday, August 2nd. The industrial products company reported $0.56 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.64 by $0.08. The business had revenue of $565.03 million for the quarter, compared to analysts’ expectations of $562.16 million. Kennametal had a net margin of 2.39% and a return on equity of 12.51%. Kennametal’s revenue for the quarter was up 8.4% compared to the same quarter last year. During the same period last year, the company earned $0.44 earnings per share. Equities analysts forecast that Kennametal will post $2.19 EPS for the current year.
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The business also recently announced a quarterly dividend, which will be paid on Thursday, August 31st. Investors of record on Friday, August 18th will be paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 2.18%. The ex-dividend date of this dividend is Wednesday, August 16th. Kennametal’s dividend payout ratio is currently 133.33%.
In related news, Director Philip A. Dur sold 7,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 8th. The shares were sold at an average price of $40.01, for a total value of $280,070.00. Following the sale, the director now directly owns 22,024 shares of the company’s stock, valued at $881,180.24. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 3.00% of the company’s stock.
A number of large investors have recently made changes to their positions in KMT. Ledyard National Bank bought a new stake in shares of Kennametal during the first quarter worth $120,000. CIBC World Markets Inc. bought a new stake in shares of Kennametal during the first quarter worth $218,000. Oakbrook Investments LLC increased its stake in shares of Kennametal by 2.6% in the second quarter. Oakbrook Investments LLC now owns 5,950 shares of the industrial products company’s stock worth $223,000 after buying an additional 150 shares in the last quarter. Venturi Wealth Management LLC bought a new stake in shares of Kennametal during the first quarter worth $225,000. Finally, Capstone Asset Management Co. bought a new stake in shares of Kennametal during the first quarter worth $230,000. 96.11% of the stock is currently owned by institutional investors and hedge funds.
Kennametal Company Profile
Kennametal Inc is a supplier of tooling, engineered components and materials consumed in production processes. The Company operates through two segments: Industrial and Infrastructure. The Industrial segment generally serves customers that operate in industrial end markets, such as transportation, general engineering, aerospace and defense.
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