Kennametal (NYSE:KMT) Trading Down 6.8% – Should You Sell?

Kennametal Inc. (NYSE:KMT)’s stock price fell 6.8% during mid-day trading on Friday . The company traded as low as $36.97 and last traded at $37.29. 411,819 shares changed hands during trading, a decline of 73% from the average session volume of 1,512,248 shares. The stock had previously closed at $40.02.

Wall Street Analysts Forecast Growth

Several research firms have commented on KMT. Weiss Ratings upgraded Kennametal from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, February 24th. JPMorgan Chase & Co. raised their price target on shares of Kennametal from $25.00 to $37.00 and gave the stock an “underweight” rating in a research note on Wednesday, January 14th. The Goldman Sachs Group set a $32.00 price objective on shares of Kennametal in a report on Friday, February 6th. Zacks Research raised shares of Kennametal from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, November 12th. Finally, Barclays increased their target price on shares of Kennametal from $28.00 to $40.00 and gave the stock an “equal weight” rating in a report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Kennametal currently has a consensus rating of “Hold” and an average price target of $34.67.

Kennametal Stock Down 7.2%

The company has a debt-to-equity ratio of 0.44, a current ratio of 2.55 and a quick ratio of 1.14. The firm has a 50-day moving average of $35.73 and a 200 day moving average of $28.16. The stock has a market capitalization of $2.83 billion, a price-to-earnings ratio of 25.98, a PEG ratio of 0.63 and a beta of 1.47.

Kennametal (NYSE:KMT) last posted its quarterly earnings results on Wednesday, February 4th. The industrial products company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.12. Kennametal had a return on equity of 9.46% and a net margin of 5.43%.The firm had revenue of $529.53 million for the quarter, compared to analyst estimates of $514.70 million. During the same quarter in the previous year, the firm earned $0.25 EPS. The business’s quarterly revenue was up 9.9% on a year-over-year basis. Kennametal has set its Q3 2026 guidance at 0.500-0.600 EPS and its FY 2026 guidance at 2.050-2.450 EPS. As a group, sell-side analysts forecast that Kennametal Inc. will post 1.17 earnings per share for the current fiscal year.

Kennametal Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, February 24th. Investors of record on Tuesday, February 10th were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date was Tuesday, February 10th. Kennametal’s payout ratio is presently 55.94%.

Insider Transactions at Kennametal

In other Kennametal news, VP John Wayne Witt sold 5,060 shares of the stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $38.29, for a total value of $193,747.40. Following the completion of the sale, the vice president owned 1,634 shares in the company, valued at $62,565.86. This trade represents a 75.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 1.43% of the company’s stock.

Institutional Investors Weigh In On Kennametal

A number of institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in Kennametal by 1.8% in the 3rd quarter. Vanguard Group Inc. now owns 9,001,984 shares of the industrial products company’s stock valued at $188,412,000 after purchasing an additional 155,566 shares during the last quarter. Brandes Investment Partners LP increased its position in Kennametal by 65.9% during the second quarter. Brandes Investment Partners LP now owns 8,154,119 shares of the industrial products company’s stock worth $187,219,000 after buying an additional 3,238,093 shares during the last quarter. Dimensional Fund Advisors LP increased its position in Kennametal by 2.1% during the fourth quarter. Dimensional Fund Advisors LP now owns 4,750,538 shares of the industrial products company’s stock worth $134,964,000 after buying an additional 96,888 shares during the last quarter. American Century Companies Inc. raised its stake in Kennametal by 44.0% in the third quarter. American Century Companies Inc. now owns 4,221,461 shares of the industrial products company’s stock valued at $88,355,000 after buying an additional 1,289,624 shares during the period. Finally, State Street Corp raised its stake in Kennametal by 0.3% in the fourth quarter. State Street Corp now owns 2,899,770 shares of the industrial products company’s stock valued at $82,382,000 after buying an additional 9,963 shares during the period.

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.