Kennametal (NYSE:KMT) Upgraded by StockNews.com to Buy

StockNews.com upgraded shares of Kennametal (NYSE:KMTFree Report) from a hold rating to a buy rating in a research note released on Friday.

A number of other equities analysts have also commented on the stock. JPMorgan Chase & Co. cut their price objective on shares of Kennametal from $26.00 to $24.00 and set an underweight rating for the company in a research report on Thursday, February 8th. Barclays boosted their price target on shares of Kennametal from $24.00 to $25.00 and gave the company an equal weight rating in a research report on Thursday. Two research analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of Hold and a consensus target price of $24.75.

Check Out Our Latest Stock Report on KMT

Kennametal Stock Performance

Shares of NYSE KMT traded down $0.07 during midday trading on Friday, hitting $25.96. The company’s stock had a trading volume of 697,855 shares, compared to its average volume of 719,507. The firm has a market capitalization of $2.06 billion, a price-to-earnings ratio of 19.23, a P/E/G ratio of 3.54 and a beta of 1.76. The company has a current ratio of 2.42, a quick ratio of 1.06 and a debt-to-equity ratio of 0.46. The stock has a fifty day moving average price of $24.41 and a 200 day moving average price of $24.38. Kennametal has a one year low of $22.08 and a one year high of $30.60.

Kennametal (NYSE:KMTGet Free Report) last issued its earnings results on Wednesday, May 8th. The industrial products company reported $0.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.01). The business had revenue of $515.80 million for the quarter, compared to the consensus estimate of $518.50 million. Kennametal had a net margin of 5.29% and a return on equity of 9.35%. The company’s revenue was down 3.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.39 EPS. On average, research analysts forecast that Kennametal will post 1.47 EPS for the current fiscal year.

Kennametal announced that its board has authorized a share buyback plan on Wednesday, February 7th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the industrial products company to reacquire up to 10.6% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.

Kennametal Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 28th. Stockholders of record on Tuesday, May 14th will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.08%. The ex-dividend date is Monday, May 13th. Kennametal’s dividend payout ratio is currently 59.26%.

Insider Transactions at Kennametal

In other news, VP John Wayne Witt sold 1,000 shares of the business’s stock in a transaction that occurred on Thursday, March 7th. The shares were sold at an average price of $25.55, for a total value of $25,550.00. Following the completion of the sale, the vice president now directly owns 1,343 shares in the company, valued at approximately $34,313.65. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 1.61% of the company’s stock.

Institutional Trading of Kennametal

Several hedge funds and other institutional investors have recently bought and sold shares of KMT. Burgundy Asset Management Ltd. boosted its position in Kennametal by 3.7% during the 4th quarter. Burgundy Asset Management Ltd. now owns 4,852,273 shares of the industrial products company’s stock valued at $125,140,000 after buying an additional 173,023 shares during the period. Dimensional Fund Advisors LP raised its position in Kennametal by 0.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,416,981 shares of the industrial products company’s stock valued at $113,914,000 after purchasing an additional 38,358 shares during the last quarter. Wellington Management Group LLP lifted its holdings in Kennametal by 7.8% in the 4th quarter. Wellington Management Group LLP now owns 4,240,814 shares of the industrial products company’s stock worth $109,371,000 after buying an additional 305,542 shares during the period. Charles Schwab Investment Management Inc. grew its position in shares of Kennametal by 3.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,214,902 shares of the industrial products company’s stock worth $31,332,000 after buying an additional 34,880 shares during the last quarter. Finally, Brandes Investment Partners LP increased its stake in shares of Kennametal by 1,186.7% during the fourth quarter. Brandes Investment Partners LP now owns 890,034 shares of the industrial products company’s stock valued at $22,954,000 after buying an additional 820,864 shares during the period.

About Kennametal

(Get Free Report)

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.

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