Kennametal (KMT) – Analysts’ Weekly Ratings Updates
Several brokerages have updated their recommendations and price targets on shares of Kennametal (NYSE: KMT) in the last few weeks:
- 8/4/2017 – Kennametal was upgraded by analysts at Wells Fargo & Company from a “market perform” rating to an “outperform” rating. They now have a $43.09 price target on the stock, up previously from $26.10.
- 8/4/2017 – Kennametal was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $40.00 price target on the stock. 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%.”
- 8/4/2017 – Kennametal had its “hold” rating reaffirmed by analysts at Stifel Nicolaus.
- 7/27/2017 – Kennametal was downgraded by analysts at BidaskClub from a “hold” rating to a “sell” rating.
- 7/4/2017 – Kennametal was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Over the last six months, Kennametal's shares outperformed the Zacks categorized Machine Tools & Related Products 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. For fiscal 2017, the company increased its adjusted earnings guidance to $1.50-$1.60 per share from the previous forecast of $1.20-$1.50. However, the company is exposed to risks from foreign currency translation, stiff competition, high debt levels and uncertain economic conditions.”
Shares of Kennametal Inc. (KMT) opened at 36.66 on Monday. The stock has a market capitalization of $2.96 billion, a PE ratio of 60.10 and a beta of 1.89. The stock has a 50 day moving average of $38.53 and a 200 day moving average of $38.36. Kennametal Inc. has a 52-week low of $25.18 and a 52-week high of $43.09.
Kennametal (NYSE:KMT) last announced its quarterly earnings data on Wednesday, August 2nd. The industrial products company reported $0.56 EPS for the quarter, missing the Zacks’ consensus estimate of $0.64 by $0.08. Kennametal had a return on equity of 12.51% and a net margin of 2.39%. The company had revenue of $565.03 million for the quarter, compared to analyst estimates of $562.16 million. During the same period in the prior year, the firm posted $0.44 earnings per share. The business’s quarterly revenue was up 8.4% compared to the same quarter last year. Analysts forecast that Kennametal Inc. will post $2.20 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 31st. Stockholders of record on Friday, August 18th will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.18%. The ex-dividend date of this dividend is Wednesday, August 16th. Kennametal’s dividend payout ratio is presently 133.33%.
In other news, Director Philip A. Dur sold 7,000 shares of the business’s stock in a transaction dated Thursday, June 8th. The stock was sold at an average price of $40.01, for a total transaction of $280,070.00. Following the completion of 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 filing with the SEC, which is accessible through this link. Insiders own 3.00% of the company’s stock.
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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