Kennametal (NYSE:KMT) Shares Gap Down Following Analyst Downgrade

Kennametal Inc. (NYSE:KMT)’s share price gapped down prior to trading on Friday after Morgan Stanley lowered their price target on the stock from $36.00 to $31.00. The stock had previously closed at $35.53, but opened at $33.10. Morgan Stanley currently has an equal weight rating on the stock. Kennametal shares last traded at $33.9680, with a volume of 233,304 shares.

A number of other analysts have also recently commented on KMT. Barclays cut Kennametal from an “equal weight” rating to an “underweight” rating and reduced their price target for the stock from $40.00 to $33.00 in a research report on Wednesday, May 27th. Jefferies Financial Group cut Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price objective on the stock. in a research report on Thursday, May 7th. Weiss Ratings downgraded Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, May 20th. DA Davidson started coverage on Kennametal in a research note on Tuesday, June 16th. They set a “neutral” rating and a $34.00 price objective for the company. Finally, JPMorgan Chase & Co. reduced their target price on shares of Kennametal from $40.00 to $34.00 and set an “underweight” rating for the company in a report on Monday, July 13th. Six research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $35.79.

Insiders Place Their Bets

In other Kennametal news, Director Sagar A. Patel sold 29,499 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $33.50, for a total transaction of $988,216.50. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Judith L. Bacchus sold 5,488 shares of Kennametal stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $35.94, for a total transaction of $197,238.72. Following the sale, the vice president owned 4,554 shares in the company, valued at approximately $163,670.76. The trade was a 54.65% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 47,000 shares of company stock worth $1,583,326. Corporate insiders own 1.43% of the company’s stock.

Institutional Trading of Kennametal

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. LSV Asset Management bought a new position in Kennametal during the fourth quarter valued at approximately $2,290,000. Medina Value Partners LLC grew its holdings in Kennametal by 72.7% during the 4th quarter. Medina Value Partners LLC now owns 968,294 shares of the industrial products company’s stock valued at $27,509,000 after buying an additional 407,487 shares in the last quarter. Steel Grove Capital Advisors LLC bought a new stake in Kennametal in the 4th quarter worth approximately $1,911,000. UBS Group AG increased its stake in Kennametal by 190.1% in the 4th 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 during the last quarter. Finally, SG Americas Securities LLC raised its holdings in shares of Kennametal by 3,273.8% during the 4th quarter. SG Americas Securities LLC now owns 274,260 shares of the industrial products company’s stock worth $7,792,000 after acquiring an additional 266,131 shares in the last quarter.

Kennametal Stock Down 4.7%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.99 and a current ratio of 2.38. The firm has a market capitalization of $2.58 billion, a PE ratio of 19.14, a PEG ratio of 0.22 and a beta of 1.36. The company has a fifty day moving average price of $34.62 and a 200-day moving average price of $35.96.

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

Kennametal Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, May 26th. Shareholders of record on Tuesday, May 12th were paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Tuesday, May 12th. Kennametal’s dividend payout ratio (DPR) is presently 45.20%.

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.