Kennametal (NYSE:KMT) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Kennametal (NYSE:KMT) from a hold rating to a strong-buy rating in a research report released on Tuesday,Zacks reports.

Several other equities research analysts have also commented on KMT. UBS Group lowered their price objective on shares of Kennametal from $39.00 to $35.00 and set a “neutral” rating on the stock in a research note on Monday, August 10th. Weiss Ratings restated a “hold (c+)” rating on shares of Kennametal in a research report on Monday, August 17th. JPMorgan Chase & Co. reduced their price target on shares of Kennametal from $40.00 to $34.00 and set an “underweight” rating on the stock in a report on Monday, July 13th. Barclays downgraded shares of Kennametal from an “equal weight” rating to an “underweight” rating and reduced their price target for the company from $40.00 to $33.00 in a report on Wednesday, May 27th. Finally, Morgan Stanley lowered shares of Kennametal from an “equal weight” rating to an “underweight” rating and lowered their price target for the company from $31.00 to $27.00 in a research report on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $34.07.

Kennametal Stock Up 1.3%

KMT opened at $29.69 on Tuesday. The business’s fifty day moving average is $31.94 and its two-hundred day moving average is $34.90. 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 cap of $2.27 billion, a price-to-earnings ratio of 6.75, a PEG ratio of 0.29 and a beta of 1.34. Kennametal has a one year low of $20.35 and a one year high of $43.81.

Kennametal (NYSE:KMT) last posted its earnings results on Wednesday, August 5th. The industrial products company reported $2.96 earnings per share for the quarter, beating the consensus estimate of $2.31 by $0.65. Kennametal had a return on equity of 24.83% and a net margin of 14.53%.The company had revenue of $736.61 million for the quarter, compared to analyst estimates of $725.74 million. During the same quarter in the prior year, the company earned $0.34 earnings per share. Kennametal’s revenue was up 42.6% compared to the same quarter last year. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. Analysts anticipate that Kennametal will post 4.82 EPS for the current fiscal year.

Kennametal Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, August 11th were paid a dividend of $0.20 per share. 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 2.7%. Kennametal’s dividend payout ratio (DPR) is presently 18.18%.

Insider Transactions at Kennametal

In related news, CEO Sanjay Chowbey acquired 7,000 shares of the company’s 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 transaction, the chief executive officer owned 246,839 shares in the company, valued at $7,183,014.90. This trade represents a 2.92% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Judith Bacchus sold 9,676 shares of the business’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $30.29, for a total transaction of $293,086.04. Following the completion of the transaction, the vice president directly owned 15,721 shares of the company’s stock, valued at $476,189.09. The trade was a 38.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.43% of the company’s stock.

Hedge Funds Weigh In On Kennametal

A number of institutional investors have recently modified their holdings of KMT. BlackRock Inc. acquired a new stake in shares of Kennametal during the second quarter worth $440,446,000. William Blair Investment Management LLC acquired a new position in Kennametal in the second quarter valued at $69,614,000. Medina Value Partners LLC acquired a new position in Kennametal in the second quarter valued at $43,007,296. NFJ Investment Group LLC purchased a new position in Kennametal during the second quarter worth about $36,202,000. Finally, Bank of New York Mellon Corp purchased a new position in Kennametal during the second quarter worth about $33,949,000.

Kennametal Company Profile

Kennametal Inc (NYSE: KMT) is an industrial technology company that develops and manufactures tooling, engineered components and wear-resistant solutions for demanding applications. Its products are designed to help customers cut, shape, drill and protect materials used in manufacturing, transportation, energy, infrastructure and other industrial markets.

The company’s offerings include carbide and ceramic cutting tools, indexable inserts, solid carbide tooling, toolholding systems and related metal-cutting products.