Kennametal (NYSE:KMT) Updates FY 2027 Earnings Guidance

Kennametal (NYSE:KMT) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 4.150-5.150 for the period, compared to the consensus estimate of 3.780. The company issued revenue guidance of $3.3 billion-$3.5 billion, compared to the consensus revenue estimate of $2.7 billion. Kennametal also updated its Q1 2027 guidance to 2.500-2.800 EPS.

Kennametal Trading Up 3.9%

Shares of Kennametal stock opened at $36.28 on Wednesday. The firm’s 50 day simple moving average is $34.39 and its two-hundred day simple moving average is $36.40. The firm has a market capitalization of $2.76 billion, a price-to-earnings ratio of 20.50, a PEG ratio of 0.48 and a beta of 1.36. Kennametal has a 12-month low of $17.62 and a 12-month high of $43.81. The company has a current ratio of 2.38, a quick ratio of 0.99 and a debt-to-equity ratio of 0.43.

Kennametal (NYSE:KMT) last posted its quarterly earnings data on Wednesday, August 5th. The industrial products company reported $2.96 EPS for the quarter, topping the consensus estimate of $2.31 by $0.65. The business had revenue of $736.61 million during the quarter, compared to the consensus estimate of $725.74 million. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. 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 predict that Kennametal will post 3.23 EPS for the current year.

Kennametal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 2.2%. The ex-dividend date is Tuesday, August 11th. Kennametal’s payout ratio is presently 45.20%.

Analysts Set New Price Targets

Several research analysts have recently issued reports on KMT shares. Zacks Research cut Kennametal from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. Barclays lowered Kennametal from an “equal weight” rating to an “underweight” rating and dropped their target price for the company from $40.00 to $33.00 in a research report on Wednesday, May 27th. Morgan Stanley cut their price target on shares of Kennametal from $36.00 to $31.00 and set an “equal weight” rating on the stock in a report on Friday, July 17th. Weiss Ratings lowered shares of Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, May 20th. Finally, Jefferies Financial Group cut shares of Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price objective for the company. in a research note on Thursday, May 7th. Six equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, Kennametal has an average rating of “Reduce” and an average price target of $35.79.

Insider Buying and Selling at Kennametal

In other news, VP Judith L. Bacchus sold 5,488 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $35.94, for a total transaction of $197,238.72. Following the sale, the vice president owned 4,554 shares of the company’s stock, valued at $163,670.76. This trade represents a 54.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Sagar A. Patel sold 29,499 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $33.50, for a total transaction of $988,216.50. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 47,000 shares of company stock valued at $1,583,326. 1.43% of the stock is owned by company insiders.

Institutional Trading of Kennametal

A number of hedge funds have recently added to or reduced their stakes in the company. Headlands Technologies LLC grew its position in Kennametal by 80.7% during the second quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company’s stock valued at $35,000 after buying an additional 682 shares during the period. Smartleaf Asset Management LLC raised its position in shares of Kennametal by 142.3% in the second quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company’s stock worth $48,000 after acquiring an additional 1,228 shares during the period. ARK Investment Management LLC raised its position in shares of Kennametal by 16.6% in the fourth quarter. ARK Investment Management LLC now owns 3,210 shares of the industrial products company’s stock worth $91,000 after acquiring an additional 457 shares during the period. Tower Research Capital LLC TRC raised its position in shares of Kennametal by 318.1% in the second quarter. Tower Research Capital LLC TRC now owns 7,033 shares of the industrial products company’s stock worth $161,000 after acquiring an additional 5,351 shares during the period. Finally, CIBC Asset Management Inc purchased a new stake in shares of Kennametal during the 4th quarter worth about $206,000.

About Kennametal

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.