Kennametal (NYSE:KMT) Shares Gap Down After Analyst Downgrade

Kennametal Inc. (NYSE:KMT) gapped down prior to trading on Friday after Morgan Stanley lowered their price target on the stock from $36.00 to $31.00. The stock had previously closed at $35.53, but opened at $33.10. Morgan Stanley currently has an equal weight rating on the stock. Kennametal shares last traded at $33.9680, with a volume of 233,304 shares traded.

Several other equities research analysts also recently commented on KMT. 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 cut Kennametal from an “equal weight” rating to an “underweight” rating and reduced their price target for the stock from $40.00 to $33.00 in a research report on Wednesday, May 27th. JPMorgan Chase & Co. dropped their target price on shares of Kennametal from $40.00 to $34.00 and set an “underweight” rating on the stock in a report on Monday, July 13th. DA Davidson started coverage on Kennametal in a report on Tuesday, June 16th. They set a “neutral” rating and a $34.00 price target for the company. Finally, Jefferies Financial Group lowered shares of Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price objective for the company. in a research report on Thursday, May 7th. Six equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Kennametal currently has a consensus rating of “Reduce” and an average target price of $35.79.

Insider Buying and Selling

In other Kennametal news, VP Carlonda R. Reilly sold 12,013 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total value of $397,870.56. Following the sale, the vice president directly owned 25,143 shares in the company, valued at approximately $832,736.16. This trade represents a 32.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Judith L. Bacchus sold 5,488 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $35.94, for a total transaction of $197,238.72. Following the completion of the sale, the vice president owned 4,554 shares of the company’s stock, valued at approximately $163,670.76. This represents a 54.65% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 47,000 shares of company stock worth $1,583,326 in the last 90 days. Corporate insiders own 1.43% of the company’s stock.

Hedge Funds Weigh In On Kennametal

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada grew its holdings in shares of Kennametal by 17.7% during the first quarter. Royal Bank of Canada now owns 30,474 shares of the industrial products company’s stock worth $649,000 after buying an additional 4,578 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Kennametal by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 46,307 shares of the industrial products company’s stock valued at $986,000 after buying an additional 2,013 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Kennametal by 13.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 240,556 shares of the industrial products company’s stock worth $5,124,000 after purchasing an additional 28,020 shares during the last quarter. Jane Street Group LLC increased its position in Kennametal by 39.3% during the first quarter. Jane Street Group LLC now owns 229,903 shares of the industrial products company’s stock worth $4,897,000 after buying an additional 64,907 shares during the last quarter. Finally, Norges Bank bought a new stake in Kennametal in the 2nd quarter valued at $585,000.

Kennametal Price Performance

The company has a market capitalization of $2.58 billion, a P/E ratio of 19.14, a price-to-earnings-growth ratio of 0.22 and a beta of 1.36. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.38 and a quick ratio of 0.99. The company’s 50-day moving average price is $34.62 and its two-hundred day moving average price is $35.96.

Kennametal (NYSE:KMT) last issued its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.09. The firm had revenue of $592.59 million during the quarter, compared to the consensus estimate of $568.03 million. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The business’s revenue for the quarter was up 21.8% compared to the same quarter last year. During the same period last year, the business posted $0.47 earnings per share. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, sell-side analysts expect that Kennametal Inc. will post 3.23 EPS for the current year.

Kennametal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, May 26th. Shareholders of record on Tuesday, May 12th were paid a $0.20 dividend. The ex-dividend date was Tuesday, May 12th. This represents a $0.80 annualized dividend and a yield of 2.4%. Kennametal’s payout ratio is 45.20%.

Kennametal Company Profile

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.