Morgan Stanley Has Lowered Expectations for Kennametal (NYSE:KMT) Stock Price

Kennametal (NYSE:KMT) had its target price cut by investment analysts at Morgan Stanley from $36.00 to $31.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has an “equal weight” rating on the industrial products company’s stock. Morgan Stanley’s target price would indicate a potential downside of 8.47% from the company’s current price.

Several other research analysts also recently issued reports on the stock. JPMorgan Chase & Co. dropped their price objective on shares of Kennametal from $40.00 to $34.00 and set an “underweight” rating on the stock in a report on Monday, July 13th. DA Davidson initiated coverage on shares of Kennametal in a research note on Tuesday, June 16th. They issued a “neutral” rating and a $34.00 target price for the company. Weiss Ratings downgraded Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, May 20th. Zacks Research lowered Kennametal from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. Finally, Jefferies Financial Group cut Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price target for the company. in a report on Thursday, May 7th. Six investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Kennametal has a consensus rating of “Reduce” and a consensus target price of $35.79.

Kennametal Stock Down 4.7%

KMT opened at $33.87 on Friday. The business has a 50 day moving average of $34.62 and a 200-day moving average of $35.96. The stock has a market capitalization of $2.58 billion, a price-to-earnings ratio of 19.14, a P/E/G ratio of 0.22 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. Kennametal has a 1-year low of $17.62 and a 1-year high of $43.81.

Kennametal (NYSE:KMT) last announced its earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.68 by $0.09. The business had revenue of $592.59 million for the quarter, compared to analyst estimates of $568.03 million. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. Kennametal’s revenue was up 21.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.47 earnings per share. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, sell-side analysts anticipate that Kennametal will post 3.23 earnings per share for the current year.

Insider Activity

In other news, Director Sagar A. Patel sold 29,499 shares of the stock in a transaction on Monday, June 8th. The shares were sold at an average price of $33.50, for a total value of $988,216.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Carlonda R. Reilly sold 12,013 shares of Kennametal stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total transaction of $397,870.56. Following the sale, the vice president owned 25,143 shares in the company, valued at approximately $832,736.16. This trade represents a 32.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 47,000 shares of company stock worth $1,583,326. 1.43% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kennametal

Several large investors have recently modified their holdings of KMT. Arrowstreet Capital Limited Partnership boosted its stake in Kennametal by 36.6% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,887,048 shares of the industrial products company’s stock valued at $39,496,000 after buying an additional 505,669 shares in the last quarter. Medina Value Partners LLC grew its position in Kennametal by 72.7% in the fourth quarter. Medina Value Partners LLC now owns 968,294 shares of the industrial products company’s stock valued at $27,509,000 after acquiring an additional 407,487 shares during the period. UBS Group AG raised its stake in Kennametal by 190.1% during the fourth quarter. UBS Group AG now owns 538,321 shares of the industrial products company’s stock worth $15,294,000 after acquiring an additional 352,726 shares in the last quarter. Marshall Wace LLP raised its stake in Kennametal by 776.9% during the fourth quarter. Marshall Wace LLP now owns 375,839 shares of the industrial products company’s stock worth $10,678,000 after acquiring an additional 332,981 shares in the last quarter. Finally, Cubist Systematic Strategies LLC lifted its holdings in shares of Kennametal by 195.3% during the second quarter. Cubist Systematic Strategies LLC now owns 472,940 shares of the industrial products company’s stock valued at $10,859,000 after acquiring an additional 312,769 shares during the period.

Kennametal Company Profile

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.