Kennametal Inc. Declares Quarterly Dividend of $0.20 (NYSE:KMT)

Kennametal Inc. (NYSE:KMT) declared a quarterly dividend on Friday, May 2nd, Wall Street Journal reports. Investors of record on Tuesday, May 13th will be given a dividend of 0.20 per share by the industrial products company on Tuesday, May 27th. This represents a $0.80 annualized dividend and a dividend yield of 3.85%. The ex-dividend date of this dividend is Tuesday, May 13th.

Kennametal has a dividend payout ratio of 60.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Kennametal to earn $1.37 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 58.4%.

Kennametal Stock Performance

NYSE KMT opened at $20.76 on Friday. The firm’s 50 day simple moving average is $20.25 and its 200 day simple moving average is $23.49. The firm has a market capitalization of $1.61 billion, a price-to-earnings ratio of 17.02, a P/E/G ratio of 3.69 and a beta of 1.39. The company has a current ratio of 2.53, a quick ratio of 1.13 and a debt-to-equity ratio of 0.47. Kennametal has a 1 year low of $17.30 and a 1 year high of $32.18.

Kennametal (NYSE:KMT) last posted its earnings results on Wednesday, May 7th. The industrial products company reported $0.47 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $0.21. Kennametal had a net margin of 4.76% and a return on equity of 8.12%. The firm had revenue of $486.40 million for the quarter, compared to analysts’ expectations of $489.30 million. During the same quarter in the previous year, the firm posted $0.30 earnings per share. The company’s revenue was down 5.7% on a year-over-year basis. As a group, research analysts expect that Kennametal will post 1.17 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages recently issued reports on KMT. Barclays cut their target price on Kennametal from $24.00 to $22.00 and set an “equal weight” rating on the stock in a report on Thursday, April 10th. StockNews.com upgraded Kennametal from a “hold” rating to a “buy” rating in a research note on Monday, April 28th. Finally, Morgan Stanley decreased their target price on Kennametal from $24.00 to $20.00 and set an “equal weight” rating for the company in a research report on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $25.20.

Insider Activity at Kennametal

In other news, CEO Sanjay Chowbey purchased 10,000 shares of the stock in a transaction dated Tuesday, February 11th. The shares were purchased at an average cost of $21.75 per share, with a total value of $217,500.00. Following the acquisition, the chief executive officer now directly owns 77,595 shares of the company’s stock, valued at $1,687,691.25. This represents a 14.79 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 1.41% of the stock is currently owned by insiders.

Kennametal Company Profile

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.