Kennametal (NYSE:KMT) Cut to “Buy” at Wall Street Zen

Wall Street Zen cut shares of Kennametal (NYSE:KMT) from a strong-buy rating to a buy rating in a research note issued to investors on Saturday morning,Wall Street Zen reports.

A number of other brokerages have also recently weighed in on KMT. Weiss Ratings cut Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, October 23rd. JPMorgan Chase & Co. dropped their price target on Kennametal from $30.00 to $27.00 and set an “underweight” rating for the company in a research note on Thursday, November 5th. Morgan Stanley downgraded Kennametal from an “equal weight” rating to an “underweight” rating and cut their price objective for the stock from $31.00 to $27.00 in a report on Monday, August 10th. Zacks Research lowered Kennametal from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 14th. Finally, UBS Group reduced their price objective on Kennametal from $39.00 to $35.00 and set a “neutral” rating on the stock in a research note on Monday, August 10th. Five analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, Kennametal currently has an average rating of “Reduce” and a consensus target price of $33.07.

Kennametal Price Performance

Kennametal stock opened at $24.27 on Friday. Kennametal has a 1 year low of $22.65 and a 1 year high of $43.81. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.98 and a current ratio of 3.45. The firm has a 50 day moving average price of $30.00 and a 200 day moving average price of $34.37. The company has a market cap of $1.85 billion, a price-to-earnings ratio of 3.20, a PEG ratio of 0.24 and a beta of 1.30.

Kennametal (NYSE:KMT) last posted its quarterly earnings results on Wednesday, November 4th. The industrial products company reported $3.48 earnings per share for the quarter, topping analysts’ consensus estimates of $2.65 by $0.83. The company had revenue of $768.19 million for the quarter, compared to the consensus estimate of $770.36 million. Kennametal had a net margin of 22.49% and a return on equity of 38.40%. Kennametal’s revenue was up 54.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.34 earnings per share. Sell-side analysts predict that Kennametal will post 5.18 earnings per share for the current year.

Kennametal Announces Dividend

The company also recently disclosed 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 is Monday, November 9th. This represents a $0.80 dividend on an annualized basis and a yield of 3.3%. Kennametal’s payout ratio is currently 10.55%.

Insider Buying and Selling at Kennametal

In related news, CFO Patrick S. Watson purchased 2,000 shares of Kennametal stock in a transaction dated Friday, November 6th. The shares were acquired at an average price of $23.50 per share, with a total value of $47,000.00. Following the completion of the transaction, the chief financial officer owned 98,523 shares of the company’s stock, valued at approximately $2,315,290.50. This trade represents a 2.07% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Sanjay Chowbey purchased 7,000 shares of Kennametal stock in a transaction dated Thursday, November 5th. The shares were bought at an average cost of $23.62 per share, for a total transaction of $165,340.00. Following the transaction, the chief executive officer directly owned 280,957 shares of the company’s stock, valued at approximately $6,636,204.34. The trade was a 2.56% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 16,000 shares of company stock valued at $416,040 in the last ninety days. Insiders own 1.65% of the company’s stock.

Institutional Trading of Kennametal

Several institutional investors and hedge funds have recently bought and sold shares of the company. Allworth Financial LP acquired a new position in Kennametal during the second quarter valued at approximately $25,000. Cetera Investment Advisers raised its position in shares of Kennametal by 9.4% in the first quarter. Cetera Investment Advisers now owns 8,376 shares of the industrial products company’s stock valued at $303,000 after purchasing an additional 723 shares during the period. Rockefeller Capital Management L.P. raised its position in shares of Kennametal by 3,600.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 972 shares during the period. Nykredit A S acquired a new stake in shares of Kennametal in the second quarter worth $37,000. Finally, Vise Technologies Inc. lifted its stake in shares of Kennametal by 13.2% in the third quarter. Vise Technologies Inc. now owns 9,274 shares of the industrial products company’s stock worth $285,000 after buying an additional 1,085 shares during the last quarter.

About Kennametal

Kennametal Inc is an industrial technology company that develops and manufactures metal-cutting tools, tooling systems, and wear-resistant products. Its products use materials such as tungsten carbide and advanced ceramics to help customers machine components and protect equipment used in demanding operating conditions.

The company serves industries including aerospace, transportation, energy, general engineering, and earthworks. Its products and services include cutting tools and related tooling, engineered components, and wear solutions for industrial applications.

Founded in 1938 as McKenna Metals, Kennametal has grown into a global business serving customers across multiple regions.