Kennametal (NYSE:KMT) Trading Down 9.6% – Should You Sell?

Kennametal Inc. (NYSE:KMT)’s share price traded down 9.6% during trading on Friday . The stock traded as low as $38.12 and last traded at $37.6980. 1,237,639 shares were traded during trading, a decline of 14% from the average session volume of 1,433,939 shares. The stock had previously closed at $41.71.

Kennametal News Roundup

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Kennametal beat fiscal Q3 2026 estimates, with sales up about 22%, margin expansion, and continued strength in Earthworks, Energy and Aerospace demand. Kennametal Q3 Earnings Beat Estimates on Pricing and Volume
• Positive Sentiment: The company reported stronger-than-expected quarterly results overall, which helped push the stock to a new 52-week high and fueled momentum buying. Kennametal (NYSE:KMT) Reports Strong Q1 CY2026, Stock Jumps 11.1%
• Positive Sentiment: JPMorgan raised its price target on Kennametal to $40 from $37, signaling valuation support even while maintaining an underweight rating. Kennametal price target raised by JPMorgan Chase & Co.
• Neutral Sentiment: Zacks published two value-investing pieces on KMT, including one comparing it with Sandvik AB and another calling it a strong value stock; these articles are more about valuation than a new fundamental catalyst. KMT or SDVKY: Which Is the Better Value Stock Right Now? Here’s Why Kennametal (KMT) is a Strong Value Stock
• Negative Sentiment: Jefferies downgraded Kennametal, which could temper enthusiasm after the post-earnings rally despite the company’s improved results. Jefferies downgrades Kennametal (KMT)

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Morgan Stanley lifted their price objective on shares of Kennametal from $29.00 to $36.00 and gave the company an “equal weight” rating in a research report on Tuesday, February 10th. UBS Group lifted their price target on Kennametal from $32.00 to $39.00 and gave the company a “neutral” rating in a report on Thursday, February 5th. Weiss Ratings upgraded Kennametal from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, April 29th. Barclays increased their price objective on Kennametal from $28.00 to $40.00 and gave the stock an “equal weight” rating in a report on Monday, February 9th. Finally, JPMorgan Chase & Co. raised their target price on Kennametal from $37.00 to $40.00 and gave the company an “underweight” rating in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $36.93.

Kennametal Stock Performance

The stock has a market cap of $2.75 billion, a price-to-earnings ratio of 20.39, a PEG ratio of 0.35 and a beta of 1.44. The company’s 50 day simple moving average is $38.20 and its 200 day simple moving average is $33.11. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.14 and a current ratio of 2.38.

Kennametal (NYSE:KMT) last issued its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share for the quarter, topping analysts’ consensus estimates of $0.68 by $0.09. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The company had revenue of $592.59 million during the quarter, compared to analyst estimates of $568.03 million. During the same period in the prior year, the business posted $0.47 EPS. The business’s revenue for the quarter was up 21.8% compared to the same quarter last year. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. On average, equities research analysts anticipate that Kennametal Inc. will post 3.91 earnings per share for the current year.

Kennametal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 26th. Shareholders of record on Tuesday, May 12th will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Tuesday, May 12th. Kennametal’s dividend payout ratio (DPR) is presently 45.20%.

Insider Buying and Selling at Kennametal

In related news, VP John Wayne Witt sold 5,060 shares of the firm’s stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $38.29, for a total transaction of $193,747.40. Following the completion of the transaction, the vice president owned 1,634 shares of the company’s stock, valued at $62,565.86. This trade represents a 75.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Carlonda R. Reilly sold 13,410 shares of the business’s stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $36.31, for a total transaction of $486,917.10. Following the completion of the sale, the vice president owned 38,746 shares in the company, valued at approximately $1,406,867.26. This trade represents a 25.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.43% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Kennametal

Hedge funds have recently made changes to their positions in the business. PNC Financial Services Group Inc. lifted its stake in Kennametal by 106.9% during the first quarter. PNC Financial Services Group Inc. now owns 12,808 shares of the industrial products company’s stock valued at $463,000 after purchasing an additional 6,617 shares during the last quarter. Advisors Preferred LLC acquired a new position in Kennametal in the first quarter worth approximately $3,249,000. Hillsdale Investment Management Inc. increased its holdings in shares of Kennametal by 3,567.9% in the first quarter. Hillsdale Investment Management Inc. now owns 10,270 shares of the industrial products company’s stock valued at $371,000 after buying an additional 9,990 shares in the last quarter. Calamos Advisors LLC acquired a new stake in shares of Kennametal during the 1st quarter valued at $2,337,000. Finally, Diversify Wealth Management LLC acquired a new stake in shares of Kennametal during the 1st quarter valued at $328,000.

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.