Kennametal (NYSE:KMT) Hits New 1-Year Low After Earnings Miss

Kennametal Inc. (NYSE:KMT) shares reached a new 52-week low during mid-day trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $20.50 and last traded at $22.23, with a volume of 65580 shares changing hands. The stock had previously closed at $23.46.

The industrial products company reported $0.25 EPS for the quarter, missing the consensus estimate of $0.27 by ($0.02). Kennametal had a net margin of 4.98% and a return on equity of 8.35%.

Kennametal Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 25th. Shareholders of record on Tuesday, February 11th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, February 11th. This represents a $0.80 annualized dividend and a yield of 3.64%. Kennametal’s dividend payout ratio (DPR) is 65.57%.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Loop Capital increased their price objective on shares of Kennametal from $24.00 to $26.00 and gave the company a “hold” rating in a research note on Tuesday, November 19th. Bank of America lowered shares of Kennametal from a “neutral” rating to an “underperform” rating and set a $26.00 price target for the company. in a research note on Friday, October 18th. Morgan Stanley raised their price target on shares of Kennametal from $24.50 to $28.00 and gave the stock an “equal weight” rating in a research note on Tuesday, December 17th. StockNews.com upgraded shares of Kennametal from a “hold” rating to a “buy” rating in a research note on Monday, January 27th. Finally, Barclays decreased their price target on shares of Kennametal from $31.00 to $30.00 and set an “equal weight” rating for the company in a research note on Wednesday, January 8th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $27.67.

Insider Buying and Selling

In related news, VP Franklin Cardenas sold 20,470 shares of the firm’s stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $28.24, for a total value of $578,072.80. Following the completion of the transaction, the vice president now directly owns 39,581 shares of the company’s stock, valued at approximately $1,117,767.44. This trade represents a 34.09 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP John Wayne Witt sold 1,765 shares of the firm’s stock in a transaction that occurred on Friday, November 22nd. The stock was sold at an average price of $29.35, for a total transaction of $51,802.75. Following the completion of the transaction, the vice president now directly owns 1,642 shares of the company’s stock, valued at approximately $48,192.70. This trade represents a 51.81 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.41% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of KMT. Wilmington Savings Fund Society FSB bought a new position in Kennametal in the 3rd quarter valued at $30,000. Blue Trust Inc. boosted its holdings in Kennametal by 120.9% in the 4th quarter. Blue Trust Inc. now owns 1,308 shares of the industrial products company’s stock valued at $34,000 after purchasing an additional 716 shares during the period. GAMMA Investing LLC boosted its holdings in Kennametal by 45.9% in the 4th quarter. GAMMA Investing LLC now owns 1,458 shares of the industrial products company’s stock valued at $35,000 after purchasing an additional 459 shares during the period. Signaturefd LLC boosted its holdings in Kennametal by 98.7% in the 3rd quarter. Signaturefd LLC now owns 2,029 shares of the industrial products company’s stock valued at $53,000 after purchasing an additional 1,008 shares during the period. Finally, KBC Group NV boosted its holdings in Kennametal by 50.3% in the 4th quarter. KBC Group NV now owns 3,351 shares of the industrial products company’s stock valued at $80,000 after purchasing an additional 1,122 shares during the period.

Kennametal Stock Performance

The company’s fifty day simple moving average is $24.96 and its 200 day simple moving average is $25.61. The company has a current ratio of 2.52, a quick ratio of 1.16 and a debt-to-equity ratio of 0.45. The stock has a market capitalization of $1.71 billion, a P/E ratio of 17.18, a P/E/G ratio of 2.32 and a beta of 1.66.

About Kennametal

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.