Kennametal Inc. (KMT) Upgraded by Zacks Investment Research to “Buy”
Kennametal Inc. (NYSE:KMT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Friday. The firm presently has a $40.00 price target on the industrial products company’s stock. Zacks Investment Research‘s price target points to a potential upside of 9.11% from the company’s current price.
According to Zacks, “Over the last one year, Kennametal's shares have outperformed the industry. We believe that the company holds solid organic and inorganic growth opportunities in the long term. Also, it aims at developing sound cost structure by rationalization of certain manufacturing facilities and lowering of costs through employee and cost-reduction programs. By Dec 2018, cost savings are anticipated to be $165-$180 million. In fourth-quarter fiscal 2017, the company's earnings grew 27.3% year over year. Revenues were up 8.4% on the back of organic revenue growth, partially offset by forex woes and fewer business days. For fiscal 2018, the company anticipates adjusted earnings to be within $2.00-$2.30 per share, above $1.52 recorded in fiscal 2017. Organic revenue growth is expected to be within 2-4%.”
A number of other analysts have also weighed in on the stock. Jefferies Group LLC reaffirmed a “buy” rating and issued a $47.00 price target (up from $45.00) on shares of Kennametal in a research note on Friday, April 14th. BMO Capital Markets restated a “hold” rating and set a $40.00 price target on shares of Kennametal in a report on Thursday, April 20th. Barrington Research boosted their price target on shares of Kennametal from $45.00 to $50.00 and gave the company an “outperform” rating in a report on Thursday, April 27th. Stifel Nicolaus boosted their price target on shares of Kennametal from $38.00 to $44.00 and gave the company a “hold” rating in a report on Friday, April 28th. Finally, BidaskClub lowered shares of Kennametal from a “hold” rating to a “sell” rating in a report on Thursday, July 27th. One analyst has rated the stock with a sell rating, five have given a hold rating and seven have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $42.74.
Shares of Kennametal (KMT) traded up 3.35% during midday trading on Friday, hitting $36.66. 2,078,431 shares of the stock traded hands. The firm has a 50-day moving average price of $38.53 and a 200 day moving average price of $38.36. Kennametal has a one year low of $25.18 and a one year high of $43.09. The stock has a market cap of $2.96 billion, a price-to-earnings ratio of 60.10 and a beta of 1.89.
Kennametal (NYSE:KMT) last posted its earnings results on Wednesday, August 2nd. The industrial products company reported $0.56 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.64 by $0.08. The firm had revenue of $565.03 million for the quarter, compared to analyst estimates of $562.16 million. Kennametal had a net margin of 2.39% and a return on equity of 12.51%. The company’s revenue for the quarter was up 8.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.44 earnings per share. Analysts anticipate that Kennametal will post $2.20 earnings per share for the current year.
In related news, Director Philip A. Dur sold 7,000 shares of the business’s stock in a transaction that occurred on Thursday, June 8th. The shares were sold at an average price of $40.01, for a total transaction of $280,070.00. Following the transaction, the director now directly owns 22,024 shares of the company’s stock, valued at $881,180.24. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 3.00% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Investment Management Company LLC increased its position in shares of Kennametal by 0.3% in the first quarter. Northwestern Mutual Investment Management Company LLC now owns 13,820 shares of the industrial products company’s stock worth $542,000 after buying an additional 44 shares during the last quarter. Alpha Windward LLC increased its position in shares of Kennametal by 0.7% in the second quarter. Alpha Windward LLC now owns 12,745 shares of the industrial products company’s stock worth $477,000 after buying an additional 92 shares during the last quarter. Credit Agricole S A increased its position in shares of Kennametal by 1.1% in the first quarter. Credit Agricole S A now owns 12,000 shares of the industrial products company’s stock worth $471,000 after buying an additional 131 shares during the last quarter. Oakbrook Investments LLC increased its position in shares of Kennametal by 2.6% in the second quarter. Oakbrook Investments LLC now owns 5,950 shares of the industrial products company’s stock worth $223,000 after buying an additional 150 shares during the last quarter. Finally, Bank of Montreal Can increased its position in shares of Kennametal by 1.7% in the first quarter. Bank of Montreal Can now owns 9,834 shares of the industrial products company’s stock worth $386,000 after buying an additional 168 shares during the last quarter. 97.23% of the stock is currently owned by hedge funds and other institutional investors.
Kennametal Company Profile
Kennametal Inc is a supplier of tooling, engineered components and materials consumed in production processes. The Company operates through two segments: Industrial and Infrastructure. The Industrial segment generally serves customers that operate in industrial end markets, such as transportation, general engineering, aerospace and defense.
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