Kennametal (NYSE:KMT) Shares Down 13% – Here’s Why

Shares of Kennametal Inc. (NYSE:KMT) fell 13% on Wednesday. The stock traded as low as $27.17 and last traded at $26.5590. Approximately 257,613 shares changed hands during trading, a decline of 82% from the average session volume of 1,392,998 shares. The stock had previously closed at $30.53.

Analysts Set New Price Targets

KMT has been the topic of a number of recent analyst reports. Zacks Research downgraded shares of Kennametal from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, October 14th. Weiss Ratings downgraded shares of Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 23rd. UBS Group dropped their price objective on shares of Kennametal from $39.00 to $35.00 and set a “neutral” rating on the stock in a research note on Monday, August 10th. Morgan Stanley downgraded shares of Kennametal from an “equal weight” rating to an “underweight” rating and decreased their target price for the stock from $31.00 to $27.00 in a research note on Monday, August 10th. Finally, JPMorgan Chase & Co. lowered their price target on Kennametal from $34.00 to $30.00 and set an “underweight” rating on the stock in a report on Thursday, October 8th. Five analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Kennametal currently has an average rating of “Reduce” and a consensus price target of $33.50.

Kennametal Price Performance

The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.98 and a current ratio of 2.62. The firm has a market capitalization of $2.02 billion, a P/E ratio of 6.02, a price-to-earnings-growth ratio of 0.30 and a beta of 1.30. The business has a fifty day moving average of $30.44 and a 200-day moving average of $34.56.

Kennametal (NYSE:KMT) last posted its quarterly earnings data on Wednesday, November 4th. The industrial products company reported $3.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.65 by $0.83. The firm had revenue of $768.19 million for the quarter, compared to the consensus estimate of $770.36 million. Kennametal had a return on equity of 24.83% and a net margin of 14.53%. The business’s revenue for the quarter was up 54.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.34 EPS. On average, sell-side analysts forecast that Kennametal Inc. will post 4.92 EPS for the current fiscal year.

Kennametal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Monday, November 9th will be issued a $0.20 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $0.80 dividend on an annualized basis and a yield of 3.0%. Kennametal’s dividend payout ratio (DPR) is 18.18%.

Insider Buying and Selling

In related news, CEO Sanjay Chowbey bought 7,000 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The shares were acquired at an average price of $29.10 per share, with a total value of $203,700.00. Following the completion of the transaction, the chief executive officer owned 246,839 shares of the company’s stock, valued at $7,183,014.90. The trade was a 2.92% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Judith L. Bacchus sold 9,676 shares of the stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $30.29, for a total transaction of $293,086.04. Following the completion of the sale, the vice president directly owned 15,721 shares of the company’s stock, valued at approximately $476,189.09. This trade represents a 38.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.65% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in shares of Kennametal in the second quarter valued at about $440,446,000. Arrowstreet Capital Limited Partnership increased its stake in Kennametal by 15.4% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,298,349 shares of the industrial products company’s stock valued at $83,039,000 after acquiring an additional 307,209 shares during the period. William Blair Investment Management LLC acquired a new position in Kennametal in the 2nd quarter valued at approximately $69,614,000. Medina Value Partners LLC acquired a new position in Kennametal in the 2nd quarter valued at approximately $43,007,296. Finally, NFJ Investment Group LLC bought a new stake in shares of Kennametal in the 2nd quarter worth approximately $36,202,000.

Kennametal Company Profile

Kennametal Inc (NYSE: KMT) is a global industrial technology company that develops and manufactures tooling, engineered components and wear-resistant solutions. Its products are designed to help customers improve productivity, durability and performance in demanding manufacturing and industrial applications.

The company’s offerings include metal-cutting tools and systems, tooling components, advanced materials, and products made with hard metals and other wear-resistant technologies. Kennametal also provides engineered solutions for applications such as machining, earthworks, energy production, transportation, aerospace, defense and general engineering.

Founded in 1938 by Philip M.