Kennametal Inc. (KMT) Downgraded to “Sell” at Zacks Investment Research
Kennametal Inc. (NYSE:KMT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “We believe that the positive impacts from Kennametal's organic and inorganic growth strategies as well as cost-reduction programs are more than offset by the negative impacts of near-term headwinds. For fiscal 2017, the company anticipates revenue to be flat compared with roughly $2 billion generated in fiscal 2016. Organic revenue is projected to decline 2% to grow roughly 2% while adjusted earnings are expected within $1.10-$1.40 per share. Also, the company is exposed to risks arising from foreign currency translation, stiff competition, high debt levels and uncertain economic conditions.”
A number of other research analysts also recently issued reports on KMT. Jefferies Group restated a “buy” rating and set a $30.00 target price on shares of Kennametal in a research report on Sunday, July 17th. Credit Suisse Group AG restated a “hold” rating on shares of Kennametal in a research report on Saturday, July 9th. Barrington Research boosted their target price on shares of Kennametal from $28.00 to $31.00 and gave the company an “outperform” rating in a research report on Wednesday, August 3rd. Seaport Global Securities downgraded shares of Kennametal from an “accumulate” rating to a “neutral” rating and set a $28.00 target price for the company. in a research report on Thursday, August 18th. Finally, Bank of America Corp. downgraded shares of Kennametal from a “neutral” rating to an “underperform” rating in a research report on Thursday, July 7th. Four investment analysts have rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company. Kennametal currently has an average rating of “Hold” and an average target price of C$24.44.
Shares of Kennametal (NYSE:KMT) traded down 1.52% on Tuesday, hitting $28.48. The stock had a trading volume of 294,527 shares. The firm’s market cap is $2.27 billion. The firm’s 50-day moving average price is $28.14 and its 200 day moving average price is $24.86. Kennametal has a 12 month low of $15.11 and a 12 month high of $29.45.
Kennametal (NYSE:KMT) last announced its quarterly earnings data on Tuesday, August 2nd. The company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.43 by $0.01. The firm had revenue of $521.20 million for the quarter, compared to analyst estimates of $519.51 million. Kennametal had a negative net margin of 10.77% and a positive return on equity of 7.51%. The business’s quarterly revenue was down 18.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.46 earnings per share. Analysts anticipate that Kennametal will post $1.26 EPS for the current fiscal year.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. LS Investment Advisors LLC increased its position in Kennametal by 77.3% in the second quarter. LS Investment Advisors LLC now owns 4,878 shares of the company’s stock valued at $108,000 after buying an additional 2,126 shares during the period. Tower Research Capital LLC TRC increased its position in Kennametal by 305.8% in the second quarter. Tower Research Capital LLC TRC now owns 6,136 shares of the company’s stock valued at $136,000 after buying an additional 4,624 shares during the period. Bank of Montreal Can bought a new position in Kennametal during the second quarter valued at $150,000. Amalgamated Bank increased its position in Kennametal by 2.4% in the second quarter. Amalgamated Bank now owns 9,816 shares of the company’s stock valued at $283,000 after buying an additional 228 shares during the period. Finally, Cantab Capital Partners LLP bought a new position in Kennametal during the second quarter valued at $223,000. Hedge funds and other institutional investors own 97.66% of the company’s stock.
Kennametal Company Profile
Kennametal Inc (Kennametal) is a supplier of tooling, engineered components and advanced materials consumed in production processes. The Company manages and reports its business in two segments: Industrial and Infrastructure. The Company provides wear-resistant products, application engineering and services backed by material science, serving customers across diverse sectors of industrial production, transportation, earthworks, energy, infrastructure and aerospace.
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