Kennametal Inc. (NYSE:KMT) Receives Consensus Recommendation of “Reduce” from Brokerages

Kennametal Inc. (NYSE:KMT) has been assigned a consensus rating of “Reduce” from the nine analysts that are currently covering the firm, MarketBeat.com reports. Three analysts have rated the stock with a sell recommendation and six have assigned a hold recommendation to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $35.9286.

KMT has been the subject of a number of research reports. Jefferies Financial Group downgraded shares of Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price target for the company. in a research report on Thursday, May 7th. Weiss Ratings downgraded shares of Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, May 20th. Barclays downgraded shares of Kennametal from an “equal weight” rating to an “underweight” rating and reduced their price target for the company from $40.00 to $33.00 in a research report on Wednesday, May 27th. Zacks Research downgraded shares of Kennametal from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 11th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Kennametal from $37.00 to $40.00 and gave the company an “underweight” rating in a research report on Thursday, May 7th.

Kennametal Price Performance

KMT stock opened at $34.55 on Friday. The firm has a 50 day moving average of $36.56 and a 200-day moving average of $34.86. Kennametal has a 12-month low of $17.62 and a 12-month high of $43.81. The company has a current ratio of 2.38, a quick ratio of 0.99 and a debt-to-equity ratio of 0.43. The company has a market cap of $2.63 billion, a price-to-earnings ratio of 19.52, a PEG ratio of 0.21 and a beta of 1.37.

Kennametal (NYSE:KMT) last posted its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.68 by $0.09. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The company had revenue of $592.59 million during the quarter, compared to the consensus estimate of $568.03 million. During the same period last year, the firm earned $0.47 EPS. The company’s revenue for the quarter was up 21.8% on a year-over-year basis. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, equities analysts expect that Kennametal will post 2.99 EPS for the current fiscal year.

Kennametal Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Tuesday, May 12th were given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Tuesday, May 12th. Kennametal’s payout ratio is currently 45.20%.

Insider Activity at Kennametal

In related news, Director Sagar A. Patel sold 29,499 shares of Kennametal stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $33.50, for a total transaction of $988,216.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Carlonda R. Reilly sold 12,013 shares of Kennametal stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $33.12, for a total value of $397,870.56. Following the transaction, the vice president owned 25,143 shares of the company’s stock, valued at $832,736.16. This represents a 32.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 1.43% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in shares of Kennametal by 1.8% during the 3rd quarter. Vanguard Group Inc. now owns 9,001,984 shares of the industrial products company’s stock worth $188,412,000 after purchasing an additional 155,566 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of Kennametal by 2.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,750,538 shares of the industrial products company’s stock worth $134,964,000 after purchasing an additional 96,888 shares during the last quarter. American Century Companies Inc. raised its position in shares of Kennametal by 44.0% during the 3rd quarter. American Century Companies Inc. now owns 4,221,461 shares of the industrial products company’s stock worth $88,355,000 after purchasing an additional 1,289,624 shares during the last quarter. State Street Corp raised its position in shares of Kennametal by 0.3% during the 4th quarter. State Street Corp now owns 2,899,770 shares of the industrial products company’s stock worth $82,382,000 after purchasing an additional 9,963 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Kennametal by 15.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,298,349 shares of the industrial products company’s stock worth $83,039,000 after purchasing an additional 307,209 shares during the last quarter.

About Kennametal

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.