Kennametal Inc. Announces Quarterly Dividend of $0.20 (NYSE:KMT)

Kennametal Inc. (NYSE:KMT) declared a quarterly dividend on Tuesday, April 30th, Zacks reports. Investors of record on Tuesday, May 14th will be given a dividend of 0.20 per share by the industrial products company on Tuesday, May 28th. 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 has a dividend payout ratio of 48.2% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Kennametal to earn $1.59 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 50.3%.

Kennametal Price Performance

NYSE KMT traded down $0.07 on Friday, reaching $25.96. 697,855 shares of the stock traded hands, compared to its average volume of 719,507. Kennametal has a 12 month low of $22.08 and a 12 month high of $30.60. The company has a market cap of $2.06 billion, a price-to-earnings ratio of 19.23, a P/E/G ratio of 3.53 and a beta of 1.76. The firm’s fifty day simple moving average is $24.41 and its 200 day simple moving average is $24.39. The company has a quick ratio of 1.06, a current ratio of 2.42 and a debt-to-equity ratio of 0.46.

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

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Barclays raised their target price on shares of Kennametal from $24.00 to $25.00 and gave the stock an “equal weight” rating in a report on Thursday. StockNews.com upgraded Kennametal from a “hold” rating to a “buy” rating in a report on Friday. Finally, JPMorgan Chase & Co. cut 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 analysts have rated the stock with a sell rating, two have given a hold rating and one has issued a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $24.75.

Kennametal declared that its Board of Directors has initiated a stock buyback program on Wednesday, February 7th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the industrial products company to buy up to 10.6% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity at Kennametal

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

Kennametal Company Profile

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.