Kennametal (NYSE:KMT) Stock Rating Lowered by Zacks Research

Kennametal (NYSE:KMT) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday, Zacks reports.

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

Kennametal Trading Up 0.3%

Shares of KMT opened at $30.99 on Wednesday. The stock has a fifty day moving average of $30.59 and a two-hundred day moving average of $33.91. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.98 and a current ratio of 2.62. The company has a market capitalization of $2.37 billion, a PE ratio of 7.04, a price-to-earnings-growth ratio of 0.30 and a beta of 1.33. Kennametal has a fifty-two week low of $21.70 and a fifty-two week high of $43.81.

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

Insiders Place Their Bets

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

Hedge Funds Weigh In On Kennametal

Large investors have recently modified their holdings of the company. Amundi raised its holdings in Kennametal by 244.7% in the second quarter. Amundi now owns 162,786 shares of the industrial products company’s stock valued at $5,706,000 after buying an additional 115,557 shares during the period. WINTON GROUP Ltd lifted its position in Kennametal by 170.1% during the second quarter. WINTON GROUP Ltd now owns 58,366 shares of the industrial products company’s stock valued at $2,046,000 after buying an additional 36,757 shares in the last quarter. William Blair Investment Management LLC acquired a new position in Kennametal during the second quarter valued at approximately $69,614,000. Deutsche Bank AG purchased a new stake in Kennametal during the second quarter worth approximately $9,166,000. Finally, Legal & General Group Plc purchased a new stake in Kennametal during the second quarter worth approximately $6,243,000.

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.