Kennametal (NYSE:KMT) Trading Down 9.6% – Here’s Why

Kennametal Inc. (NYSE:KMT) shares traded down 9.6% on Friday . The company traded as low as $38.12 and last traded at $37.6980. 1,237,639 shares were traded during mid-day trading, a decline of 14% from the average session volume of 1,433,939 shares. The stock had previously closed at $41.71.

Kennametal News Roundup

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Kennametal beat fiscal Q3 estimates on pricing and volume; sales rose ~22% with margin expansion and strength across Earthworks, Energy and Aerospace — management set FY2026 EPS guidance that underpins the improved outlook. Kennametal Q3 Earnings Beat
• Positive Sentiment: Market reaction earlier in the week: shares jumped and the stock reached a new 52-week high after the earnings release, signaling strong investor enthusiasm for the beat. Stock Jumps After Earnings
• Positive Sentiment: Analyst/style commentary: Zacks highlights KMT as a strong value stock and provides style-score support for value-oriented investors, which can attract longer-term buyers. Zacks: Strong Value Stock
• Neutral Sentiment: JPMorgan raised its price target from $37 to $40 but maintained an “underweight” rating — a mixed signal that lifts implied upside modestly but keeps institutional sentiment cautious. JPMorgan Price Target Change
• Neutral Sentiment: Several transcripts and earnings snapshots (earnings call, Yahoo/Seeking Alpha coverage) provide detail on margin drivers and end-market demand — useful for investors digging into durability of the beat but not new catalyst by themselves. Earnings Call Transcript
• Neutral Sentiment: Zacks published a comparative piece on Kennametal vs. Sandvik (SDVKY) for value investors — useful context but not an immediate price catalyst. KMT vs SDVKY Comparison
• Negative Sentiment: Jefferies downgraded Kennametal, which likely sparked some of today’s pullback as investors trim positions after the post-earnings run. Jefferies Downgrade

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on KMT. Morgan Stanley increased their price target on shares of Kennametal from $29.00 to $36.00 and gave the stock an “equal weight” rating in a report on Tuesday, February 10th. Barclays increased their target price on Kennametal from $28.00 to $40.00 and gave the company an “equal weight” rating in a research note on Monday, February 9th. UBS Group raised their price target on Kennametal from $32.00 to $39.00 and gave the company a “neutral” rating in a research report on Thursday, February 5th. JPMorgan Chase & Co. upped their price objective on Kennametal from $37.00 to $40.00 and gave the stock an “underweight” rating in a report on Thursday. Finally, Jefferies Financial Group lowered Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price objective on the stock. in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Kennametal has an average rating of “Hold” and a consensus price target of $36.93.

Kennametal Stock Performance

The company has a debt-to-equity ratio of 0.43, a current ratio of 2.38 and a quick ratio of 1.14. The stock has a market cap of $2.84 billion, a PE ratio of 21.05, a price-to-earnings-growth ratio of 0.68 and a beta of 1.44. The business has a 50 day moving average price of $38.20 and a two-hundred day moving average price of $33.11.

Kennametal (NYSE:KMT) last posted its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $0.77 EPS for the quarter, beating analysts’ consensus estimates of $0.68 by $0.09. The company had revenue of $592.59 million during the quarter, compared to analyst estimates of $568.03 million. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The firm’s revenue was up 21.8% compared to the same quarter last year. During the same period in the prior year, the business posted $0.47 EPS. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, equities research analysts forecast that Kennametal Inc. will post 2.43 EPS for the current fiscal year.

Kennametal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, May 26th. Investors of record on Tuesday, May 12th will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Tuesday, May 12th. Kennametal’s payout ratio is currently 45.20%.

Insider Buying and Selling

In other Kennametal news, VP Carlonda R. Reilly sold 13,410 shares of the business’s stock in a transaction on Monday, March 9th. The shares were sold at an average price of $36.31, for a total transaction of $486,917.10. Following the transaction, the vice president directly owned 38,746 shares of the company’s stock, valued at approximately $1,406,867.26. The trade was a 25.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP John Wayne Witt sold 5,060 shares of the company’s stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $38.29, for a total transaction of $193,747.40. Following the completion of the transaction, the vice president owned 1,634 shares of the company’s stock, valued at $62,565.86. This trade represents a 75.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.43% of the company’s stock.

Institutional Trading of Kennametal

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Kohmann Bosshard Financial Services LLC bought a new stake in Kennametal during the 4th quarter valued at approximately $28,000. Rockefeller Capital Management L.P. raised its position in shares of Kennametal by 3,600.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 972 shares in the last quarter. Hantz Financial Services Inc. lifted its stake in shares of Kennametal by 350.2% in the 3rd quarter. Hantz Financial Services Inc. now owns 1,373 shares of the industrial products company’s stock valued at $29,000 after purchasing an additional 1,068 shares during the period. Danske Bank A S bought a new stake in shares of Kennametal during the fourth quarter valued at approximately $31,000. Finally, Headlands Technologies LLC grew its stake in Kennametal by 80.7% in the second quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company’s stock worth $35,000 after purchasing an additional 682 shares during the period.

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.