Kennametal (NYSE:KMT) Stock Falls 13% – Here’s Why

Kennametal Inc. (NYSE:KMT)’s stock price dropped 13% during mid-day trading on Wednesday. The company traded as low as $27.17 and last traded at $26.5590. Approximately 257,613 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 1,392,998 shares. The stock had previously closed at $30.53.

Analysts Set New Price Targets

Several research firms have commented on KMT. Zacks Research lowered Kennametal from a “strong-buy” rating to a “hold” rating in a report on Wednesday, October 14th. Weiss Ratings cut Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 23rd. Morgan Stanley downgraded Kennametal from an “equal weight” rating to an “underweight” rating and decreased their price target for the stock from $31.00 to $27.00 in a research note on Monday, August 10th. UBS Group lowered their price objective on Kennametal from $39.00 to $35.00 and set a “neutral” rating on the stock in a report on Monday, August 10th. Finally, DA Davidson cut their price objective on Kennametal from $34.00 to $30.00 and set a “neutral” rating on the stock in a research note on Tuesday, August 11th. Five investment analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Kennametal has a consensus rating of “Reduce” and a consensus price target of $33.07.

Kennametal Trading Down 0.5%

The company has a current ratio of 3.45, a quick ratio of 0.98 and a debt-to-equity ratio of 0.59. The company’s fifty day moving average is $30.24 and its 200-day moving average is $34.47. The firm has a market capitalization of $1.76 billion, a P/E ratio of 3.05, a P/E/G ratio of 0.24 and a beta of 1.30.

Kennametal (NYSE:KMT) last issued its quarterly earnings results on Wednesday, November 4th. The industrial products company reported $3.48 EPS for the quarter, topping analysts’ consensus estimates of $2.65 by $0.83. The company had revenue of $768.19 million during the quarter, compared to analyst estimates of $770.36 million. Kennametal had a return on equity of 38.40% and a net margin of 22.49%. The company’s quarterly revenue was up 54.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.34 earnings per share. As a group, sell-side analysts anticipate that Kennametal Inc. will post 5.18 earnings per share for the current fiscal year.

Kennametal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Monday, November 9th will be given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Monday, November 9th. Kennametal’s dividend payout ratio is 18.18%.

Insider Activity

In related news, CEO Sanjay Chowbey bought 7,000 shares of the company’s stock in a transaction on Thursday, September 10th. The stock was bought at an average cost of $29.10 per share, with a total value of $203,700.00. Following the completion of the purchase, the chief executive officer owned 246,839 shares in the company, valued at approximately $7,183,014.90. The trade was a 2.92% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Judith L. Bacchus sold 9,676 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $30.29, for a total transaction of $293,086.04. Following the completion of the transaction, the vice president owned 15,721 shares of the company’s stock, valued at $476,189.09. This trade represents a 38.10% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.65% of the stock is currently owned by corporate insiders.

Institutional Trading of Kennametal

Institutional investors and hedge funds have recently modified their holdings of the stock. Allworth Financial LP bought a new position in Kennametal in the second quarter worth approximately $25,000. Rockefeller Capital Management L.P. raised its stake in Kennametal by 3,600.0% during the 4th 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 purchased a new stake in Kennametal in the 2nd quarter worth $37,000. Integrated Wealth Concepts LLC bought a new position in shares of Kennametal during the 2nd quarter valued at about $44,000. Finally, Signaturefd LLC grew its position in shares of Kennametal by 377.7% during the third quarter. Signaturefd LLC now owns 1,696 shares of the industrial products company’s stock valued at $52,000 after purchasing an additional 1,341 shares in the last quarter.

Kennametal Company Profile

Kennametal Inc (NYSE: KMT) is a global industrial technology company that develops and manufactures tooling, engineered components and wear-resistant solutions. Its products are designed to help customers improve productivity, durability and performance in demanding manufacturing and industrial applications.

The company’s offerings include metal-cutting tools and systems, tooling components, advanced materials, and products made with hard metals and other wear-resistant technologies. Kennametal also provides engineered solutions for applications such as machining, earthworks, energy production, transportation, aerospace, defense and general engineering.

Founded in 1938 by Philip M.