Kennametal (NYSE:KMT) Shares Cross Above 50 Day Moving Average – Should You Sell?

Shares of Kennametal Inc. (NYSE:KMT) crossed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $30.41 and traded as high as $31.24. Kennametal shares last traded at $30.7440, with a volume of 2,158,563 shares.

Analysts Set New Price Targets

KMT has been the subject of a number of recent research reports. Zacks Research lowered shares of Kennametal from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 14th. Weiss Ratings lowered Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 23rd. JPMorgan Chase & Co. dropped their price objective on Kennametal from $34.00 to $30.00 and set an “underweight” rating on the stock in a research note on Thursday, October 8th. Morgan Stanley cut 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. Finally, DA Davidson cut their price objective on shares of Kennametal from $34.00 to $30.00 and set a “neutral” rating on the stock in a report on Tuesday, August 11th. Five research analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average price target of $33.50.

Kennametal Stock Performance

The company’s 50-day simple moving average is $30.41 and its 200 day simple moving average is $34.58. 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 cap of $2.35 billion, a P/E ratio of 6.99, a PEG ratio of 0.29 and a beta of 1.33.

Kennametal (NYSE:KMT) last announced its 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 firm had revenue of $736.61 million for the quarter, compared to the consensus estimate of $725.74 million. Kennametal had a return on equity of 24.83% and a net margin of 14.53%. The company’s revenue was up 42.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $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. As a group, sell-side analysts expect that Kennametal Inc. will post 4.92 EPS for the current fiscal year.

Kennametal Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Monday, November 9th will be given a $0.20 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $0.80 annualized dividend and a yield of 2.6%. Kennametal’s payout ratio is currently 18.18%.

Insider Buying and Selling at Kennametal

In other news, VP Judith L. Bacchus sold 9,676 shares of the firm’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $30.29, for a total transaction of $293,086.04. Following the completion of the sale, the vice president directly owned 15,721 shares of the company’s stock, valued at $476,189.09. This trade represents a 38.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Sanjay Chowbey bought 7,000 shares of the stock in a transaction dated Thursday, September 10th. The shares were acquired at an average price of $29.10 per share, for a total transaction of $203,700.00. Following the completion of the purchase, the chief executive officer directly owned 246,839 shares in the company, valued at approximately $7,183,014.90. This trade represents a 2.92% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 1.65% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Kennametal

A number of hedge funds and other institutional investors have recently made changes to their positions in KMT. BlackRock Inc. purchased a new stake in Kennametal during the second quarter worth about $440,446,000. Arrowstreet Capital Limited Partnership boosted its stake in Kennametal by 15.4% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,298,349 shares of the industrial products company’s stock valued at $83,039,000 after acquiring an additional 307,209 shares during the last quarter. William Blair Investment Management LLC purchased a new position in Kennametal in the second quarter valued at about $69,614,000. Medina Value Partners LLC purchased a new position in Kennametal in the second quarter valued at about $43,007,296. Finally, NFJ Investment Group LLC bought a new position in shares of Kennametal during the 2nd quarter valued at approximately $36,202,000.

Kennametal Company Profile

Kennametal Inc (NYSE: KMT) is a global industrial technology company that develops and manufactures tooling, engineered components and wear-resistant solutions. Its products are designed to help customers improve productivity, durability and performance in demanding manufacturing and industrial applications.

The company’s offerings include metal-cutting tools and systems, tooling components, advanced materials, and products made with hard metals and other wear-resistant technologies. Kennametal also provides engineered solutions for applications such as machining, earthworks, energy production, transportation, aerospace, defense and general engineering.

Founded in 1938 by Philip M.