Kennametal Inc. (NYSE:KMT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday, April 20th.
According to Zacks, “Over the last six months, Kennametal's shares outperformed the Zacks categorized Machine Tools & Related Products industry. Over the long run, Kennametal holds solid organic and inorganic growth opportunities. Also, the company aims at developing sound cost structure by rationalization of certain manufacturing facilities and lowering of costs through employee and cost-reduction programs. For fiscal 2017, the company anticipates adjusted earnings to be within $1.20-$1.50 per share range, higher than $1.11 recorded in the previous year. Free cash flow will likely come in a band of $90-$110 million. However, the company is exposed to risks from foreign currency translation, stiff competition, high debt levels and uncertain economic conditions.”
A number of other equities research analysts also recently commented on the stock. BMO Capital Markets reiterated a “hold” rating and set a $40.00 price target on shares of Kennametal in a report on Thursday, April 20th. Jefferies Group LLC lifted their price target on shares of Kennametal from $32.00 to $35.00 and gave the stock an “outperform” rating in a report on Monday, April 17th. Longbow Research upgraded shares of Kennametal from an “underperform” rating to a “neutral” rating in a report on Wednesday, March 1st. Seaport Global Securities upgraded shares of Kennametal from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $28.00 to $50.00 in a report on Friday, February 3rd. Finally, JPMorgan Chase & Co. upgraded shares of Kennametal from an “underweight” rating to a “neutral” rating and lifted their price target for the stock from $27.00 to $36.00 in a report on Friday, February 3rd. Seven research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $41.09.
Kennametal (NYSE:KMT) traded up 3.23% during trading on Thursday, reaching $38.35. 903,890 shares of the company’s stock traded hands. The firm has a 50 day moving average of $39.17 and a 200 day moving average of $36.08. The firm’s market capitalization is $3.09 billion. Kennametal has a 1-year low of $20.40 and a 1-year high of $43.09.
Kennametal (NYSE:KMT) last posted its earnings results on Tuesday, April 25th. The industrial products company reported $0.60 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.44 by $0.16. Kennametal had a negative net margin of 3.27% and a positive return on equity of 9.14%. The firm had revenue of $528.60 million during the quarter, compared to the consensus estimate of $511.79 million. During the same period last year, the firm posted $0.37 EPS. The firm’s revenue for the quarter was up 6.2% on a year-over-year basis. Equities analysts forecast that Kennametal will post $1.59 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 31st. Investors of record on Tuesday, May 16th will be given a $0.20 dividend. The ex-dividend date is Friday, May 12th. This represents a $0.80 annualized dividend and a dividend yield of 2.15%. Kennametal’s dividend payout ratio is presently -98.76%.
In related news, VP Judith L. Bacchus sold 9,168 shares of the firm’s stock in a transaction that occurred on Thursday, April 27th. The shares were sold at an average price of $41.89, for a total value of $384,047.52. Following the sale, the vice president now directly owns 16,767 shares of the company’s stock, valued at $702,369.63. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders purchased 31,000 shares of company stock worth $12,550 over the last three months. Corporate insiders own 3.00% of the company’s stock.
Several large investors have recently added to or reduced their stakes in the company. Columbus Circle Investors bought a new stake in Kennametal during the first quarter valued at about $23,220,000. Russell Investments Group Ltd. acquired a new position in shares of Kennametal during the fourth quarter worth $2,158,000. Great West Life Assurance Co. Can boosted its position in shares of Kennametal by 1.3% in the third quarter. Great West Life Assurance Co. Can now owns 1,878,788 shares of the industrial products company’s stock worth $54,452,000 after buying an additional 24,367 shares during the period. BlackRock Fund Advisors boosted its position in shares of Kennametal by 6.0% in the third quarter. BlackRock Fund Advisors now owns 4,184,646 shares of the industrial products company’s stock worth $121,438,000 after buying an additional 236,730 shares during the period. Finally, State Street Corp boosted its position in shares of Kennametal by 1.2% in the fourth quarter. State Street Corp now owns 2,527,370 shares of the industrial products company’s stock worth $79,009,000 after buying an additional 29,639 shares during the period. 99.15% of the stock is currently owned by institutional investors and hedge funds.
Kennametal Company Profile
Kennametal Inc is a supplier of tooling, engineered components and materials consumed in production processes. The Company operates through two segments: Industrial and Infrastructure. The Industrial segment generally serves customers that operate in industrial end markets, such as transportation, general engineering, aerospace and defense.
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