Kennametal (NYSE:KMT) Shares Down 6.3% – Should You Sell?

Kennametal Inc. (NYSE:KMT) was down 6.3% during trading on Wednesday . The company traded as low as $34.45 and last traded at $34.60. Approximately 1,062,065 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 1,451,817 shares. The stock had previously closed at $36.94.

Analyst Ratings Changes

A number of research analysts have commented on KMT shares. UBS Group upped their target price on shares of Kennametal from $32.00 to $39.00 and gave the company a “neutral” rating in a research report on Thursday, February 5th. The Goldman Sachs Group set a $32.00 price target on shares of Kennametal in a research report on Friday, February 6th. Zacks Research cut shares of Kennametal from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 11th. Weiss Ratings cut shares of Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, May 20th. Finally, Morgan Stanley increased their price target on shares of Kennametal from $29.00 to $36.00 and gave the stock an “equal weight” rating in a research report on Tuesday, February 10th. Six analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, Kennametal currently has an average rating of “Reduce” and a consensus price target of $35.93.

Kennametal Price Performance

The firm has a market cap of $2.50 billion, a price-to-earnings ratio of 18.60, a PEG ratio of 0.22 and a beta of 1.44. The company has a quick ratio of 0.99, a current ratio of 2.38 and a debt-to-equity ratio of 0.43. The company’s 50-day moving average price is $37.05 and its 200-day moving average price is $34.40.

Kennametal (NYSE:KMT) last issued its earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.09. The firm had revenue of $592.59 million for the quarter, compared to analysts’ expectations of $568.03 million. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The firm’s revenue was up 21.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.47 earnings per share. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. On average, equities research analysts forecast that Kennametal Inc. will post 2.99 EPS for the current year.

Kennametal Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Tuesday, May 12th were issued a $0.20 dividend. The ex-dividend date of this dividend was Tuesday, May 12th. This represents a $0.80 annualized dividend and a yield of 2.4%. Kennametal’s dividend payout ratio (DPR) is 45.20%.

Insiders Place Their Bets

In related news, VP Carlonda R. Reilly sold 13,410 shares of the firm’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $36.31, for a total value of $486,917.10. Following the sale, the vice president owned 38,746 shares of the company’s stock, valued at $1,406,867.26. This trade represents a 25.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.43% of the stock is currently owned by company insiders.

Institutional Trading of Kennametal

Several hedge funds have recently added to or reduced their stakes in KMT. American Century Companies Inc. increased its stake in Kennametal by 44.0% in the third quarter. American Century Companies Inc. now owns 4,221,461 shares of the industrial products company’s stock valued at $88,355,000 after purchasing an additional 1,289,624 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in Kennametal by 36.6% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,887,048 shares of the industrial products company’s stock valued at $39,496,000 after purchasing an additional 505,669 shares during the last quarter. Medina Value Partners LLC increased its stake in Kennametal by 72.7% in the fourth quarter. Medina Value Partners LLC now owns 968,294 shares of the industrial products company’s stock valued at $27,509,000 after purchasing an additional 407,487 shares during the last quarter. UBS Group AG increased its stake in Kennametal by 190.1% in the fourth quarter. UBS Group AG now owns 538,321 shares of the industrial products company’s stock valued at $15,294,000 after purchasing an additional 352,726 shares during the last quarter. Finally, Marshall Wace LLP increased its stake in Kennametal by 776.9% in the fourth quarter. Marshall Wace LLP now owns 375,839 shares of the industrial products company’s stock valued at $10,678,000 after purchasing an additional 332,981 shares during the last quarter.

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.