Kennametal (NYSE:KMT) Rating Lowered to Hold at StockNews.com

Kennametal (NYSE:KMT) was downgraded by equities research analysts at StockNews.com from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.

A number of other research analysts also recently weighed in on KMT. Morgan Stanley initiated coverage on Kennametal in a report on Monday, January 8th. They set an “equal weight” rating and a $24.00 price target on the stock. Barclays dropped their target price on Kennametal from $26.00 to $25.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 8th. Finally, JPMorgan Chase & Co. dropped their target price on Kennametal from $26.00 to $24.00 and set an “underweight” rating on the stock in a research report on Thursday, February 8th. Two research analysts have rated the stock with a sell rating and three have assigned a hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $24.75.

Kennametal Price Performance

Shares of KMT traded up $0.45 during midday trading on Tuesday, reaching $23.86. The stock had a trading volume of 486,029 shares, compared to its average volume of 669,338. The firm’s 50 day moving average price is $24.61 and its 200-day moving average price is $24.50. The company has a market capitalization of $1.89 billion, a P/E ratio of 15.91, a P/E/G ratio of 3.21 and a beta of 1.79. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.44 and a quick ratio of 1.06. Kennametal has a 52 week low of $22.08 and a 52 week high of $30.60.

Kennametal (NYSE:KMT) last announced its earnings results on Wednesday, February 7th. The industrial products company reported $0.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.25 by $0.05. The company had revenue of $495.30 million for the quarter, compared to analyst estimates of $498.99 million. Kennametal had a return on equity of 9.94% and a net margin of 5.86%. Kennametal’s revenue for the quarter was down .4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.27 earnings per share. On average, analysts forecast that Kennametal will post 1.49 earnings per share for the current fiscal year.

Kennametal announced that its Board of Directors has approved a share buyback program on Wednesday, February 7th that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the industrial products company to buy up to 10.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In related news, VP John Wayne Witt sold 1,000 shares of the firm’s stock in a transaction that occurred on Thursday, March 7th. The stock was sold at an average price of $25.55, for a total transaction of $25,550.00. Following the completion of the transaction, the vice president now owns 1,343 shares in the company, valued at approximately $34,313.65. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 1.79% of the company’s stock.

Hedge Funds Weigh In On Kennametal

Several hedge funds and other institutional investors have recently modified their holdings of KMT. JPMorgan Chase & Co. increased its holdings in Kennametal by 5.9% during the 1st quarter. JPMorgan Chase & Co. now owns 154,524 shares of the industrial products company’s stock valued at $4,421,000 after purchasing an additional 8,542 shares in the last quarter. Raymond James & Associates increased its holdings in Kennametal by 21.5% during the 1st quarter. Raymond James & Associates now owns 9,920 shares of the industrial products company’s stock valued at $284,000 after purchasing an additional 1,756 shares in the last quarter. Bank of Montreal Can increased its stake in shares of Kennametal by 12.1% in the 1st quarter. Bank of Montreal Can now owns 7,089 shares of the industrial products company’s stock valued at $206,000 after buying an additional 768 shares during the period. Healthcare of Ontario Pension Plan Trust Fund increased its stake in shares of Kennametal by 396.7% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 36,169 shares of the industrial products company’s stock valued at $1,035,000 after buying an additional 28,887 shares during the period. Finally, MetLife Investment Management LLC increased its stake in shares of Kennametal by 40.6% in the 1st quarter. MetLife Investment Management LLC now owns 97,137 shares of the industrial products company’s stock valued at $2,779,000 after buying an additional 28,069 shares during the period.

About Kennametal

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.