Kennametal (NYSE:KMT) Stock Rating Cut to Hold at Zacks Research

Zacks Research cut shares of Kennametal (NYSE:KMT) from a strong-buy rating to a hold rating in a research note issued to investors on Wednesday morning,Zacks reports.

Several other brokerages also recently commented on KMT. Weiss Ratings upgraded shares of Kennametal from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Morgan Stanley downgraded Kennametal from an “equal weight” rating to an “underweight” rating and reduced their target price for the company from $31.00 to $27.00 in a report on Monday, August 10th. DA Davidson reduced their target price on Kennametal from $34.00 to $30.00 and set a “neutral” rating on the stock in a report on Tuesday, August 11th. UBS Group decreased their price target on Kennametal from $39.00 to $35.00 and set a “neutral” rating on the stock in a research note on Monday, August 10th. Finally, JPMorgan Chase & Co. lowered their price target on Kennametal from $34.00 to $30.00 and set an “underweight” rating for the company in a report on Thursday, October 8th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and an average target price of $33.50.

Kennametal Price Performance

Shares of NYSE:KMT opened at $30.99 on Wednesday. The firm has a 50 day moving average of $30.59 and a 200-day moving average of $33.91. Kennametal has a 12 month low of $21.70 and a 12 month high of $43.81. The company has a current ratio of 2.62, a quick ratio of 0.98 and a debt-to-equity ratio of 0.42. The stock has a market capitalization of $2.37 billion, a PE ratio of 7.04, a PEG ratio of 0.30 and a beta of 1.33.

Kennametal (NYSE:KMT) last issued its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $2.96 earnings per share for the quarter, topping analysts’ consensus estimates of $2.31 by $0.65. The company had revenue of $736.61 million during the quarter, compared to the consensus estimate of $725.74 million. Kennametal had a net margin of 14.53% and a return on equity of 24.83%. The firm’s quarterly revenue was up 42.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.34 EPS. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. On average, equities research analysts predict that Kennametal will post 4.92 EPS for the current fiscal year.

Kennametal Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 11th were issued a $0.20 dividend. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.6%. Kennametal’s dividend payout ratio is 18.18%.

Insider Buying and Selling

In related news, CEO Sanjay Chowbey purchased 7,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The shares were bought at an average cost of $29.10 per share, with a total value of $203,700.00. Following the acquisition, the chief executive officer owned 246,839 shares of the company’s stock, valued at $7,183,014.90. This trade represents a 2.92% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Judith Bacchus sold 9,676 shares of Kennametal stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $30.29, for a total transaction of $293,086.04. Following the sale, the vice president directly owned 15,721 shares in the company, valued at $476,189.09. This trade represents a 38.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 1.65% of the company’s stock.

Institutional Trading of Kennametal

Hedge funds have recently added to or reduced their stakes in the stock. Fortitude Family Office LLC boosted its holdings in shares of Kennametal by 4,757.3% during the 3rd quarter. Fortitude Family Office LLC now owns 3,983 shares of the industrial products company’s stock valued at $122,000 after acquiring an additional 3,901 shares in the last quarter. Steel Grove Capital Advisors LLC grew its position in Kennametal by 19.3% during the 3rd quarter. Steel Grove Capital Advisors LLC now owns 58,549 shares of the industrial products company’s stock worth $1,800,000 after acquiring an additional 9,463 shares during the last quarter. Sax Wealth Advisors LLC bought a new stake in Kennametal during the 3rd quarter worth $260,000. Farther Finance Advisors LLC increased its holdings in Kennametal by 1,069.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 6,609 shares of the industrial products company’s stock worth $203,000 after purchasing an additional 6,044 shares in the last quarter. Finally, WINTON GROUP Ltd increased its holdings in Kennametal by 170.1% in the 2nd quarter. WINTON GROUP Ltd now owns 58,366 shares of the industrial products company’s stock worth $2,046,000 after purchasing an additional 36,757 shares in the last quarter.

About Kennametal

Kennametal Inc (NYSE: KMT) is an industrial technology company that develops and manufactures tooling, engineered components, and wear-resistant solutions. Its products are designed to help customers machine, shape, and protect materials used in demanding industrial applications.

The company’s offerings include cutting tools and tooling systems for metalworking, as well as engineered components, advanced materials, and surface technologies intended to improve durability and performance.