Kennametal (NYSE:KMT) Lowered to “Hold” Rating by Zacks Research

Zacks Research downgraded shares of Kennametal (NYSE:KMT) from a strong-buy rating to a hold rating in a research report report published on Monday,Zacks.com reports.

Several other analysts have also recently issued reports on the stock. UBS Group increased their price target on shares of Kennametal from $32.00 to $39.00 and gave the stock a “neutral” rating in a research report on Thursday, February 5th. Jefferies Financial Group cut shares of Kennametal from a “buy” rating to a “hold” rating and set a $47.50 target price on the stock. in a report on Thursday, May 7th. Barclays raised their target price on shares of Kennametal from $28.00 to $40.00 and gave the company an “equal weight” rating in a report on Monday, February 9th. The Goldman Sachs Group set a $32.00 target price on shares of Kennametal in a report on Friday, February 6th. Finally, Weiss Ratings raised shares of Kennametal from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, April 29th. One investment analyst has rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $36.93.

Kennametal Trading Down 3.2%

Shares of KMT stock opened at $35.88 on Monday. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.38 and a quick ratio of 0.99. The firm has a market cap of $2.73 billion, a PE ratio of 20.27, a price-to-earnings-growth ratio of 0.28 and a beta of 1.44. The company has a 50-day moving average of $37.97 and a two-hundred day moving average of $33.39. Kennametal has a 1-year low of $17.62 and a 1-year high of $43.81.

Kennametal (NYSE:KMT) last issued its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.09. The business had revenue of $592.59 million for the quarter, compared to analysts’ expectations of $568.03 million. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The business’s quarterly revenue was up 21.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.47 earnings per share. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. On average, analysts predict that Kennametal will post 2.53 EPS for the current year.

Kennametal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 26th. Shareholders of record on Tuesday, May 12th will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, May 12th. This represents a $0.80 dividend on an annualized basis and a yield of 2.2%. Kennametal’s dividend payout ratio (DPR) is presently 45.20%.

Insider Buying and Selling

In other news, VP Carlonda R. Reilly sold 13,410 shares of the firm’s stock in a transaction that occurred 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 in the company, valued at approximately $1,406,867.26. This trade represents a 25.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP John Wayne Witt sold 5,060 shares of the firm’s stock in a transaction that occurred 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 transaction, the vice president owned 1,634 shares in the company, valued at approximately $62,565.86. This trade represents a 75.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.43% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Kennametal

Hedge funds have recently modified their holdings of the business. Kohmann Bosshard Financial Services LLC purchased a new position in Kennametal in the 4th quarter valued at $28,000. Rockefeller Capital Management L.P. grew its position in 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 valued at $28,000 after buying an additional 972 shares during the last quarter. Hantz Financial Services Inc. grew its position in 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 buying an additional 1,068 shares during the last quarter. Danske Bank A S acquired a new stake in Kennametal in the fourth quarter valued at $31,000. Finally, Headlands Technologies LLC lifted its holdings in Kennametal by 80.7% in the second quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company’s stock valued at $35,000 after acquiring an additional 682 shares during the period.

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.