Zacks Research Downgrades Kennametal (NYSE:KMT) to Hold

Kennametal (NYSE:KMT) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Tuesday,Zacks.com reports.

Other analysts also recently issued research reports about the company. DA Davidson initiated coverage on Kennametal in a research note on Tuesday, June 16th. They issued a “neutral” rating and a $34.00 price target on the stock. Barclays downgraded Kennametal from an “equal weight” rating to an “underweight” rating and dropped their target price for the stock from $40.00 to $33.00 in a report on Wednesday, May 27th. Jefferies Financial Group cut Kennametal from a “buy” rating to a “hold” rating and set a $47.50 target price on the stock. in a research note on Thursday, May 7th. JPMorgan Chase & Co. reduced their price target on Kennametal from $40.00 to $34.00 and set an “underweight” rating for the company in a report on Monday. Finally, Weiss Ratings lowered Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, May 20th. Six research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Kennametal has a consensus rating of “Reduce” and an average target price of $36.50.

Kennametal Trading Up 1.4%

Shares of NYSE KMT opened at $34.80 on Tuesday. Kennametal has a 1 year low of $17.62 and a 1 year high of $43.81. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.38 and a quick ratio of 0.99. The firm has a 50-day moving average of $34.79 and a 200 day moving average of $35.93. The stock has a market cap of $2.65 billion, a P/E ratio of 19.66, a price-to-earnings-growth ratio of 0.22 and a beta of 1.36.

Kennametal (NYSE:KMT) last announced its quarterly earnings data 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 business had revenue of $592.59 million for the quarter, compared to analysts’ expectations of $568.03 million. During the same quarter in the prior year, the company earned $0.47 earnings per share. The business’s revenue was up 21.8% compared to the same quarter last year. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, sell-side analysts expect that Kennametal will post 3.23 EPS for the current fiscal year.

Insiders Place Their Bets

In other Kennametal news, VP Carlonda R. Reilly sold 12,013 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $33.12, for a total transaction of $397,870.56. Following the completion of the transaction, the vice president owned 25,143 shares in the company, valued at $832,736.16. This trade represents a 32.33% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Sagar A. Patel sold 29,499 shares of the firm’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $33.50, for a total transaction of $988,216.50. The SEC filing for this sale provides additional information. Insiders sold 47,000 shares of company stock worth $1,583,326 in the last three months. 1.43% of the stock is owned by company insiders.

Institutional Trading of Kennametal

A number of institutional investors have recently bought and sold shares of the stock. LSV Asset Management purchased a new stake in shares of Kennametal in the fourth quarter worth approximately $2,290,000. Medina Value Partners LLC increased its stake in Kennametal by 72.7% in the 4th quarter. Medina Value Partners LLC now owns 968,294 shares of the industrial products company’s stock worth $27,509,000 after buying an additional 407,487 shares during the period. Steel Grove Capital Advisors LLC bought a new stake in Kennametal during the 4th quarter valued at about $1,911,000. UBS Group AG boosted its position in Kennametal by 190.1% in the 4th quarter. UBS Group AG now owns 538,321 shares of the industrial products company’s stock valued at $15,294,000 after buying an additional 352,726 shares during the period. Finally, SG Americas Securities LLC boosted its position in Kennametal by 3,273.8% in the 4th quarter. SG Americas Securities LLC now owns 274,260 shares of the industrial products company’s stock valued at $7,792,000 after buying an additional 266,131 shares during the period.

About Kennametal

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.