Kennametal (NYSE:KMT) Rating Increased to Hold at Zacks Investment Research

Kennametal (NYSE:KMTGet Rating) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research note issued on Tuesday, Zacks.com reports. The firm currently has a $30.00 price objective on the industrial products company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 6.69% from the company’s current price.

According to Zacks, “In third-quarter fiscal 2022, Kennametal’s earnings and revenues beat the Zacks Consensus Estimate by 11.9% and 0.7%, respectively. The company is likely to benefit from strong product offerings, innovation capabilities and a diversified business structure in the quarters ahead. Revenues are anticipated to be $510-$530 million for the fourth quarter of fiscal 2022, suggesting flat-3% year-over-year growth. In the past three months, the company’s shares have declined and appear overvalued compared to the industry. Higher taxes and temporary cost-control actions might adversely impact its earnings. For fiscal 2022, it predicts $25 million of headwinds related to cost-control actions. Tax rate is expected to be 26-28%, indicating an increase from 23.6% in fiscal 2021. Also, risks related to international operations might create headwinds.”

A number of other analysts have also recently commented on the company. StockNews.com raised Kennametal from a “hold” rating to a “buy” rating in a research report on Tuesday, May 17th. Loop Capital downgraded Kennametal from a “buy” rating to a “hold” rating and lowered their target price for the stock from $41.00 to $29.00 in a research note on Wednesday, April 6th. JPMorgan Chase & Co. lowered Kennametal from a “neutral” rating to an “underweight” rating and dropped their target price for the stock from $37.00 to $31.00 in a report on Monday, March 28th. TheStreet lowered Kennametal from a “b” rating to a “c+” rating in a research report on Friday, February 25th. Finally, Barclays dropped their price objective on shares of Kennametal from $30.00 to $28.00 in a research note on Wednesday, May 4th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Kennametal currently has an average rating of “Hold” and an average target price of $35.00.

NYSE KMT traded down $0.13 during trading on Tuesday, hitting $28.12. The company’s stock had a trading volume of 6,907 shares, compared to its average volume of 801,771. Kennametal has a fifty-two week low of $25.00 and a fifty-two week high of $41.22. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.27 and a quick ratio of 1.05. The company has a market cap of $2.32 billion, a PE ratio of 17.23, a P/E/G ratio of 3.30 and a beta of 1.90. The business’s 50 day simple moving average is $27.10 and its 200-day simple moving average is $31.67.

Kennametal (NYSE:KMTGet Rating) last released its earnings results on Monday, May 2nd. The industrial products company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.42 by $0.05. Kennametal had a net margin of 6.91% and a return on equity of 11.05%. During the same quarter in the prior year, the firm posted $0.32 EPS. Analysts expect that Kennametal will post 1.73 EPS for the current fiscal year.

In related news, Director Joseph Alvarado bought 1,000 shares of the stock in a transaction dated Monday, March 14th. The shares were acquired at an average cost of $29.05 per share, for a total transaction of $29,050.00. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director William M. Lambert purchased 36,698 shares of the business’s stock in a transaction that occurred on Wednesday, May 4th. The stock was bought at an average cost of $26.23 per share, with a total value of $962,588.54. Following the acquisition, the director now owns 52,360 shares of the company’s stock, valued at approximately $1,373,402.80. The disclosure for this purchase can be found here. 1.47% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of the business. Tudor Investment Corp Et Al boosted its holdings in Kennametal by 74.4% in the 3rd quarter. Tudor Investment Corp Et Al now owns 135,489 shares of the industrial products company’s stock valued at $4,638,000 after purchasing an additional 57,816 shares during the last quarter. Ariel Investments LLC grew its position in Kennametal by 2.0% in the fourth quarter. Ariel Investments LLC now owns 8,917,279 shares of the industrial products company’s stock worth $320,219,000 after acquiring an additional 174,596 shares during the period. Kovitz Investment Group Partners LLC increased its stake in Kennametal by 33.1% during the fourth quarter. Kovitz Investment Group Partners LLC now owns 23,100 shares of the industrial products company’s stock worth $837,000 after acquiring an additional 5,750 shares during the last quarter. Yousif Capital Management LLC purchased a new stake in Kennametal in the fourth quarter valued at $1,578,000. Finally, Two Sigma Advisers LP acquired a new position in Kennametal in the third quarter valued at about $438,000.

About Kennametal (Get Rating)

Kennametal Inc develops and applies 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. It operates through two segments, Metal Cutting and Infrastructure.

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