Kennametal (NYSE:KMT) Sets New 52-Week High – Still a Buy?

Kennametal Inc. (NYSE:KMT) shares hit a new 52-week high during mid-day trading on Monday . The company traded as high as $35.35 and last traded at $35.20, with a volume of 156580 shares. The stock had previously closed at $34.39.

Key Stories Impacting Kennametal

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Quarterly beat — Kennametal reported adjusted EPS of $0.47 (vs. ~$0.35 consensus) and revenue roughly $529.5M, up ~10% year‑over‑year; adjusted operating income rose strongly. This confirms better near‑term demand and margin improvement. Kennametal Announces Fiscal 2026 Second Quarter Results
• Positive Sentiment: Raised full‑year outlook — management lifted FY‑2026 adjusted EPS to $2.05–$2.45 and revenue to $2.2–$2.3B, well above prior consensus, giving investors a clearer path to higher earnings. Kennametal shares climb after Q2 beat and upgraded full-year guidance
• Positive Sentiment: Quarterly guidance beat — KMT set Q3 EPS guidance of $0.50–$0.60 and revenue guidance of $545–$565M (above Street revenue view), signaling sequential momentum into the next quarter. Kennametal Announces Fiscal 2026 Second Quarter Results
• Positive Sentiment: Operating leverage and buy‑ahead effect — management attributed improved adjusted operating income to volume and operating leverage, and noted some buy‑ahead activity tied to tungsten pricing, which boosted near‑term sales. Kennametal Inc (KMT) Q2 2026 Earnings Call Highlights: Strong Organic Growth and Improved …
• Neutral Sentiment: Analyst and media coverage — several outlets and research notes (Zacks, MarketBeat) highlighted the beat and provided metric-level analysis; this increases visibility but may prompt mixed analyst revisions. Kennametal (KMT) Surpasses Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Capital allocation discussion — commentary and analysis pieces are weighing KMT’s steady dividend and where free cash flow will be directed (dividend vs. buybacks vs. reinvestment). That’s important for income investors but less immediately price‑moving than guidance. Does Kennametal’s (KMT) Steady Dividend and Revenue Outlook Reveal Its True Capital Allocation Priorities?
• Negative Sentiment: Buy‑ahead risk and durability — some of the sales lift came from customer buy‑ahead tied to commodity (tungsten) pricing; this can pull forward demand and create tougher comparisons in later quarters if not replaced by organic end‑market growth. Kennametal Announces Fiscal 2026 Second Quarter Results

Wall Street Analysts Forecast Growth

Several research firms have recently commented on KMT. Morgan Stanley increased their price target on shares of Kennametal from $27.00 to $29.00 and gave the company an “equal weight” rating in a research report on Monday, January 12th. UBS Group upped their target price on Kennametal from $28.00 to $32.00 and gave the company a “neutral” rating in a research note on Monday, January 12th. Wall Street Zen raised Kennametal from a “buy” rating to a “strong-buy” rating in a research report on Saturday, November 29th. JPMorgan Chase & Co. boosted their price target on Kennametal from $25.00 to $37.00 and gave the stock an “underweight” rating in a report on Wednesday, January 14th. Finally, Zacks Research raised Kennametal from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, November 12th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Kennametal presently has a consensus rating of “Hold” and an average price target of $29.67.

Kennametal Price Performance

The company has a 50 day moving average of $30.57 and a 200 day moving average of $25.51. The stock has a market capitalization of $2.92 billion, a price-to-earnings ratio of 31.49, a price-to-earnings-growth ratio of 4.22 and a beta of 1.50. The company has a quick ratio of 1.18, a current ratio of 2.60 and a debt-to-equity ratio of 0.45.

Kennametal (NYSE:KMT) last issued its quarterly earnings results on Wednesday, February 4th. The industrial products company reported $0.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.12. Kennametal had a return on equity of 8.35% and a net margin of 4.76%.The firm had revenue of $529.53 million for the quarter, compared to analyst estimates of $514.70 million. During the same period last year, the company earned $0.25 EPS. The firm’s quarterly revenue was up 9.9% on a year-over-year basis. Kennametal has set its Q3 2026 guidance at 0.500-0.600 EPS and its FY 2026 guidance at 2.050-2.450 EPS. As a group, equities research analysts forecast that Kennametal Inc. will post 1.17 EPS for the current fiscal year.

Kennametal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 24th. Investors of record on Tuesday, February 10th will be issued a dividend of $0.20 per share. The ex-dividend date is Tuesday, February 10th. This represents a $0.80 annualized dividend and a dividend yield of 2.1%. Kennametal’s payout ratio is presently 65.57%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Royal Bank of Canada raised its stake in shares of Kennametal by 17.7% in the 1st quarter. Royal Bank of Canada now owns 30,474 shares of the industrial products company’s stock valued at $649,000 after purchasing an additional 4,578 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Kennametal by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 46,307 shares of the industrial products company’s stock worth $986,000 after acquiring an additional 2,013 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Kennametal by 13.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 240,556 shares of the industrial products company’s stock worth $5,124,000 after buying an additional 28,020 shares during the last quarter. Jane Street Group LLC lifted its stake in Kennametal by 39.3% during the first quarter. Jane Street Group LLC now owns 229,903 shares of the industrial products company’s stock valued at $4,897,000 after buying an additional 64,907 shares in the last quarter. Finally, Ameritas Advisory Services LLC acquired a new position in Kennametal in the 2nd quarter worth approximately $27,000.

About Kennametal

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.