Kennametal (NYSE:KMT) Shares Gap Up After Strong Earnings

Kennametal Inc. (NYSE:KMT) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $35.76, but opened at $39.50. Kennametal shares last traded at $39.3640, with a volume of 144,701 shares traded.

The industrial products company reported $0.47 EPS for the quarter, topping the consensus estimate of $0.33 by $0.14. Kennametal had a return on equity of 8.35% and a net margin of 4.76%.The business had revenue of $529.53 million for the quarter, compared to analysts’ expectations of $514.70 million. During the same quarter in the previous year, the firm posted $0.25 earnings per share. The company’s revenue was up 9.9% compared to the same quarter last year.

Kennametal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 24th. Investors of record on Tuesday, February 10th will be paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Tuesday, February 10th. Kennametal’s payout ratio is 65.57%.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Wall Street Zen upgraded Kennametal from a “buy” rating to a “strong-buy” rating in a research note on Saturday, November 29th. UBS Group boosted their price target on Kennametal from $28.00 to $32.00 and gave the company a “neutral” rating in a report on Monday, January 12th. Morgan Stanley raised their price objective on Kennametal from $27.00 to $29.00 and gave the stock an “equal weight” rating in a research note on Monday, January 12th. Weiss Ratings reissued a “hold (c)” rating on shares of Kennametal in a report on Thursday, January 22nd. Finally, JPMorgan Chase & Co. lifted their target price on Kennametal from $25.00 to $37.00 and gave the company an “underweight” rating in a research note on Wednesday, January 14th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $29.67.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of KMT. Kohmann Bosshard Financial Services LLC acquired a new stake in Kennametal in the fourth quarter worth about $28,000. Danske Bank A S bought a new stake in shares of Kennametal during the 4th quarter worth about $31,000. Ameritas Advisory Services LLC acquired a new stake in shares of Kennametal in the 2nd quarter worth approximately $27,000. Hantz Financial Services Inc. boosted its holdings in shares of Kennametal by 350.2% in the third quarter. Hantz Financial Services Inc. now owns 1,373 shares of the industrial products company’s stock valued at $29,000 after acquiring an additional 1,068 shares in the last quarter. Finally, Headlands Technologies LLC increased its stake in shares of Kennametal by 80.7% during the second quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company’s stock valued at $35,000 after acquiring an additional 682 shares during the period.

Kennametal Stock Performance

The stock has a market cap of $3.08 billion, a P/E ratio of 33.01, a PEG ratio of 4.22 and a beta of 1.50. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.60 and a quick ratio of 1.18. The company has a fifty day moving average of $30.57 and a 200 day moving average of $25.51.

Kennametal Company Profile

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.