Kadant (NYSE:KAI) Upgraded to “Buy” at Wall Street Zen

Wall Street Zen upgraded shares of Kadant (NYSE:KAI) from a hold rating to a buy rating in a research report sent to investors on Saturday morning,Wall Street Zen reports.

Other analysts also recently issued reports about the company. Zacks Research downgraded Kadant from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 20th. Weiss Ratings upgraded Kadant from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday, August 17th. Finally, DA Davidson raised their target price on Kadant from $306.00 to $335.00 and gave the company a “neutral” rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $357.50.

Kadant Stock Down 6.8%

KAI opened at $266.76 on Friday. Kadant has a fifty-two week low of $244.87 and a fifty-two week high of $354.07. The firm has a market capitalization of $3.15 billion, a P/E ratio of 28.68 and a beta of 1.17. The company’s 50-day moving average is $309.55 and its 200 day moving average is $312.64. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.59 and a quick ratio of 1.63.

Kadant (NYSE:KAI) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $3.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.94 by $0.48. Kadant had a net margin of 9.52% and a return on equity of 13.16%. The business had revenue of $312.88 million during the quarter, compared to the consensus estimate of $299.17 million. During the same period in the prior year, the firm posted $2.31 EPS. The firm’s quarterly revenue was up 22.6% compared to the same quarter last year. Kadant has set its FY 2026 guidance at 12.430-12.680 EPS and its Q3 2026 guidance at 2.900-3.000 EPS. Research analysts expect that Kadant will post 12.56 earnings per share for the current fiscal year.

Kadant Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 12th. Stockholders of record on Thursday, October 15th will be paid a dividend of $0.36 per share. The ex-dividend date is Thursday, October 15th. This represents a $1.44 annualized dividend and a dividend yield of 0.5%. Kadant’s dividend payout ratio (DPR) is presently 15.48%.

Kadant announced that its board has approved a share repurchase program on Thursday, May 21st that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the industrial products company to buy up to 1.4% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Kadant

Several institutional investors and hedge funds have recently bought and sold shares of KAI. Smartleaf Asset Management LLC lifted its position in Kadant by 14.4% during the fourth quarter. Smartleaf Asset Management LLC now owns 254 shares of the industrial products company’s stock valued at $75,000 after purchasing an additional 32 shares during the period. Pacer Advisors Inc. boosted its stake in shares of Kadant by 9.4% in the 4th quarter. Pacer Advisors Inc. now owns 374 shares of the industrial products company’s stock worth $107,000 after buying an additional 32 shares during the last quarter. Illinois Municipal Retirement Fund boosted its stake in shares of Kadant by 0.6% in the 1st quarter. Illinois Municipal Retirement Fund now owns 6,120 shares of the industrial products company’s stock worth $1,789,000 after buying an additional 37 shares during the last quarter. Maryland State Retirement & Pension System grew its holdings in shares of Kadant by 2.3% in the fourth quarter. Maryland State Retirement & Pension System now owns 1,732 shares of the industrial products company’s stock worth $494,000 after acquiring an additional 39 shares during the period. Finally, Vancity Investment Management Ltd grew its holdings in shares of Kadant by 1.8% in the second quarter. Vancity Investment Management Ltd now owns 2,458 shares of the industrial products company’s stock worth $772,000 after acquiring an additional 43 shares during the period. 96.13% of the stock is owned by institutional investors.

Kadant Company Profile

Kadant Inc (NYSE: KAI) is a global supplier of technologies and equipment used in the production of paper and other industrial products. The company develops solutions that help customers manage fluid flow, process raw materials, remove contaminants, and improve the efficiency and sustainability of manufacturing operations.

Its products and services include fluid-handling equipment, doctoring and cleaning systems, stock-preparation equipment, granulators, screens, filtration systems, steam and condensate systems, and related process technologies.