Kennametal (NYSE:KMT) Shares Gap Up Following Earnings Beat

Kennametal Inc. (NYSE:KMT)’s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $19.82, but opened at $21.25. Kennametal shares last traded at $19.68, with a volume of 272,032 shares changing hands.

The industrial products company reported $0.47 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $0.21. The company had revenue of $486.40 million during the quarter, compared to analysts’ expectations of $489.30 million. Kennametal had a return on equity of 8.12% and a net margin of 4.76%. The firm’s revenue for the quarter was down 5.7% on a year-over-year basis. During the same period last year, the firm earned $0.30 EPS.

Kennametal Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 27th. Investors of record on Tuesday, May 13th will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 4.06%. The ex-dividend date of this dividend is Tuesday, May 13th. Kennametal’s dividend payout ratio is currently 65.57%.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on KMT shares. Barclays cut their target price on shares of Kennametal from $24.00 to $22.00 and set an “equal weight” rating for the company in a research report on Thursday, April 10th. Morgan Stanley cut their target price on shares of Kennametal from $24.00 to $20.00 and set an “equal weight” rating for the company in a research note on Wednesday, April 16th. Finally, StockNews.com raised shares of Kennametal from a “hold” rating to a “buy” rating in a research note on Monday, April 28th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and one has given a buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $25.20.

Insider Transactions at Kennametal

In related news, CEO Sanjay Chowbey acquired 10,000 shares of Kennametal stock in a transaction that occurred on Tuesday, February 11th. The stock was acquired at an average price of $21.75 per share, for a total transaction of $217,500.00. Following the transaction, the chief executive officer now directly owns 77,595 shares of the company’s stock, valued at $1,687,691.25. This trade represents a 14.79 % increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.41% of the company’s stock.

Institutional Investors Weigh In On Kennametal

A number of hedge funds and other institutional investors have recently modified their holdings of KMT. Mackenzie Financial Corp grew its holdings in Kennametal by 557.1% during the first quarter. Mackenzie Financial Corp now owns 77,877 shares of the industrial products company’s stock worth $1,659,000 after acquiring an additional 66,025 shares during the period. KLP Kapitalforvaltning AS boosted its holdings in shares of Kennametal by 92.9% in the first quarter. KLP Kapitalforvaltning AS now owns 27,000 shares of the industrial products company’s stock worth $575,000 after buying an additional 13,000 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in shares of Kennametal during the first quarter valued at approximately $500,000. Victory Capital Management Inc. lifted its position in shares of Kennametal by 6.0% in the 1st quarter. Victory Capital Management Inc. now owns 3,218,394 shares of the industrial products company’s stock valued at $68,552,000 after acquiring an additional 181,035 shares in the last quarter. Finally, Ballentine Partners LLC purchased a new stake in shares of Kennametal in the first quarter worth approximately $261,000.

Kennametal Stock Performance

The firm’s fifty day moving average is $20.27 and its 200 day moving average is $23.57. The firm has a market capitalization of $1.53 billion, a price-to-earnings ratio of 16.16, a PEG ratio of 3.69 and a beta of 1.39. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.53 and a quick ratio of 1.13.

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.