Kennametal (NYSE:KMT) Shares Down 6.8% – Time to Sell?

Kennametal Inc. (NYSE:KMT)’s stock price fell 6.8% during trading on Friday . The company traded as low as $36.97 and last traded at $37.29. 411,819 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 1,512,248 shares. The stock had previously closed at $40.02.

Analysts Set New Price Targets

A number of research firms have recently issued reports on KMT. Weiss Ratings upgraded Kennametal from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, February 24th. Morgan Stanley increased their target price on Kennametal from $29.00 to $36.00 and gave the company an “equal weight” rating in a report on Tuesday, February 10th. The Goldman Sachs Group set a $32.00 price target on Kennametal in a research note on Friday, February 6th. UBS Group increased their price objective on shares of Kennametal from $32.00 to $39.00 and gave the stock a “neutral” rating in a research note on Thursday, February 5th. Finally, Zacks Research upgraded shares of Kennametal from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, November 12th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $34.67.

Kennametal Price Performance

The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.14 and a current ratio of 2.55. The stock’s 50 day simple moving average is $35.57 and its two-hundred day simple moving average is $28.00. The firm has a market capitalization of $2.87 billion, a PE ratio of 26.29, a price-to-earnings-growth ratio of 0.71 and a beta of 1.47.

Kennametal (NYSE:KMT) last announced its quarterly earnings data on Wednesday, February 4th. The industrial products company reported $0.47 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.12. Kennametal had a return on equity of 9.46% and a net margin of 5.43%.The firm had revenue of $529.53 million for the quarter, compared to the consensus estimate of $514.70 million. During the same quarter last year, the business posted $0.25 earnings per share. The firm’s revenue was up 9.9% compared to the same quarter last year. Kennametal has set its Q3 2026 guidance at 0.500-0.600 EPS and its FY 2026 guidance at 2.050-2.450 EPS. On average, sell-side analysts forecast that Kennametal Inc. will post 1.17 EPS for the current year.

Kennametal Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, February 24th. Investors of record on Tuesday, February 10th were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 2.1%. The ex-dividend date was Tuesday, February 10th. Kennametal’s dividend payout ratio (DPR) is 55.94%.

Insider Transactions at Kennametal

In other news, VP John Wayne Witt sold 5,060 shares of the stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $38.29, for a total transaction of $193,747.40. Following the sale, the vice president owned 1,634 shares of the company’s stock, valued at approximately $62,565.86. This represents a 75.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.43% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of KMT. Brandes Investment Partners LP raised its position in Kennametal by 65.9% in the 2nd quarter. Brandes Investment Partners LP now owns 8,154,119 shares of the industrial products company’s stock valued at $187,219,000 after purchasing an additional 3,238,093 shares in the last quarter. American Century Companies Inc. increased its stake in shares of Kennametal by 44.0% during the third quarter. American Century Companies Inc. now owns 4,221,461 shares of the industrial products company’s stock worth $88,355,000 after buying an additional 1,289,624 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in shares of Kennametal by 63.2% during the second quarter. Arrowstreet Capital Limited Partnership now owns 1,381,379 shares of the industrial products company’s stock worth $31,716,000 after buying an additional 534,978 shares during the period. Medina Value Partners LLC lifted its stake in Kennametal by 72.7% in the fourth quarter. Medina Value Partners LLC now owns 968,294 shares of the industrial products company’s stock worth $27,509,000 after acquiring an additional 407,487 shares during the last quarter. Finally, Apollo Management Holdings L.P. acquired a new position in Kennametal during the 2nd quarter worth approximately $8,794,000.

Kennametal Company Profile

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.