Kennametal (NYSE:KMT) Shares Gap Up on Strong Earnings

Kennametal Inc. (NYSE:KMT)’s share price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $36.06, but opened at $40.50. Kennametal shares last traded at $36.65, with a volume of 618,977 shares changing hands.

The industrial products company reported $2.96 earnings per share for the quarter, topping the consensus estimate of $2.31 by $0.65. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The business had revenue of $736.61 million for the quarter, compared to analysts’ expectations of $725.74 million. During the same quarter last year, the company posted $0.34 EPS. The company’s revenue was up 42.6% compared to the same quarter last year. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS.

Kennametal Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Tuesday, August 11th will be given a dividend of $0.20 per share. The ex-dividend date is Tuesday, August 11th. This represents a $0.80 annualized dividend and a yield of 2.2%. Kennametal’s payout ratio is 45.20%.

Analysts Set New Price Targets

A number of analysts have commented on KMT shares. Weiss Ratings cut Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, May 20th. Jefferies Financial Group downgraded Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price objective for the company. in a research note on Thursday, May 7th. DA Davidson assumed coverage on shares of Kennametal in a report on Tuesday, June 16th. They issued a “neutral” rating and a $34.00 target price for the company. Barclays downgraded shares of Kennametal from an “equal weight” rating to an “underweight” rating and lowered their price target for the company from $40.00 to $33.00 in a report on Wednesday, May 27th. Finally, Morgan Stanley dropped their price target on shares of Kennametal from $36.00 to $31.00 and set an “equal weight” rating for the company in a research report on Friday, July 17th. Six investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $35.79.

Insider Activity

In related news, Director Sagar A. Patel sold 29,499 shares of the stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $33.50, for a total transaction of $988,216.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Judith L. Bacchus sold 5,488 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $35.94, for a total value of $197,238.72. Following the completion of the transaction, the vice president directly owned 4,554 shares in the company, valued at approximately $163,670.76. This represents a 54.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 47,000 shares of company stock worth $1,583,326 over the last ninety days. Corporate insiders own 1.43% of the company’s stock.

Institutional Investors Weigh In On Kennametal

Several institutional investors and hedge funds have recently modified their holdings of the stock. Kohmann Bosshard Financial Services LLC purchased a new position in shares of Kennametal in the fourth quarter worth $28,000. Rockefeller Capital Management L.P. grew its stake in Kennametal by 3,600.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company’s stock valued at $28,000 after acquiring an additional 972 shares in the last quarter. Danske Bank A S purchased a new position in Kennametal during the fourth quarter valued at $31,000. Headlands Technologies LLC increased its holdings in Kennametal by 80.7% in the 2nd quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company’s stock valued at $35,000 after acquiring an additional 682 shares during the last quarter. Finally, Smartleaf Asset Management LLC increased its holdings in Kennametal by 142.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company’s stock valued at $48,000 after acquiring an additional 1,228 shares during the last quarter.

Kennametal Stock Performance

The firm has a market cap of $2.82 billion, a PE ratio of 20.88, a PEG ratio of 0.48 and a beta of 1.36. 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 firm’s 50 day simple moving average is $34.39 and its 200 day simple moving average is $36.40.

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.