Kennametal Inc. (NYSE:KMT) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research cut shares of Kennametal Inc. (NYSE:KMT) from a buy rating to a hold rating in a research note released on Tuesday.
According to Zacks, “We believe that Kennametal holds solid organic and inorganic growth opportunities in the long term. Also, it aims at developing a sound cost structure by rationalization of certain manufacturing facilities and lowering of costs through employee and cost-reduction programs. By Dec 2018, cost savings are anticipated to be $165-$180 million. In fourth-quarter fiscal 2017, the company's earnings grew 27.3% year over year. For fiscal 2018, the company anticipates adjusted earnings to be within $2.00-$2.30 per share, above $1.52 recorded in fiscal 2017. However, the company is exposed to risks from foreign currency translation, stiff competition, high debt levels and uncertain economic conditions. Also, its shares have underperformed the industry over the last three months while looks overvalued comparatively.”
Several other analysts also recently issued reports on KMT. Stifel Nicolaus reaffirmed a hold rating on shares of Kennametal in a research report on Friday, August 4th. Wells Fargo & Company raised shares of Kennametal from a market perform rating to an outperform rating and raised their price target for the stock from $26.10 to $43.50 in a research report on Friday, August 4th. BidaskClub downgraded shares of Kennametal from a hold rating to a sell rating in a research report on Thursday, July 27th. BMO Capital Markets raised their price target on shares of Kennametal from $40.00 to $45.00 and gave the stock a market perform rating in a research report on Monday, May 1st. Finally, Barrington Research raised their price target on shares of Kennametal from $45.00 to $50.00 and gave the stock an outperform rating in a research report on Thursday, April 27th. One analyst has rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the company. The company presently has a consensus rating of Hold and an average price target of $42.77.
Shares of Kennametal (NYSE KMT) traded down 0.81% during mid-day trading on Tuesday, hitting $34.08. 1,525,656 shares of the stock traded hands. Kennametal has a one year low of $26.10 and a one year high of $43.09. The stock has a market cap of $2.75 billion, a PE ratio of 55.87 and a beta of 1.89. The stock has a 50-day moving average of $37.66 and a 200 day moving average of $38.36.
Kennametal (NYSE:KMT) last issued its quarterly earnings data on Wednesday, August 2nd. The industrial products company reported $0.56 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.64 by $0.08. Kennametal had a net margin of 2.39% and a return on equity of 12.51%. The firm had revenue of $565.03 million during the quarter, compared to analyst estimates of $562.16 million. During the same period last year, the business earned $0.44 EPS. The firm’s revenue was up 8.4% compared to the same quarter last year. Equities analysts predict that Kennametal will post $2.20 EPS for the current fiscal year.
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The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 31st. Investors of record on Friday, August 18th will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 2.35%. The ex-dividend date of this dividend is Wednesday, August 16th. Kennametal’s dividend payout ratio (DPR) is presently 133.33%.
In related news, Director Philip A. Dur sold 7,000 shares of the firm’s stock in a transaction on Thursday, June 8th. The stock was sold at an average price of $40.01, for a total transaction of $280,070.00. Following the transaction, the director now directly owns 22,024 shares in the company, valued at $881,180.24. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 3.00% of the company’s stock.
A number of institutional investors have recently made changes to their positions in KMT. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its position in shares of Kennametal by 0.4% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 11,756 shares of the industrial products company’s stock valued at $440,000 after buying an additional 42 shares during the period. Northwestern Mutual Investment Management Company LLC boosted its position in shares of Kennametal by 0.3% in the first quarter. Northwestern Mutual Investment Management Company LLC now owns 13,820 shares of the industrial products company’s stock valued at $542,000 after buying an additional 44 shares during the period. Alpha Windward LLC boosted its position in shares of Kennametal by 0.7% in the second quarter. Alpha Windward LLC now owns 12,745 shares of the industrial products company’s stock valued at $477,000 after buying an additional 92 shares during the period. Affinity Wealth Management boosted its position in shares of Kennametal by 1.5% in the second quarter. Affinity Wealth Management now owns 8,780 shares of the industrial products company’s stock valued at $328,000 after buying an additional 130 shares during the period. Finally, Credit Agricole S A boosted its position in shares of Kennametal by 1.1% in the first quarter. Credit Agricole S A now owns 12,000 shares of the industrial products company’s stock valued at $471,000 after buying an additional 131 shares during the period. Hedge funds and other institutional investors own 96.11% of the company’s stock.
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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