Kennametal Inc. (NYSE:KMT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “We believe that the positive impacts from Kennametal's organic and inorganic growth strategies as well as cost-reduction programs are more than offset by the negative impacts of near-term headwinds. For fiscal 2017, the company anticipates revenue to be flat compared with roughly $2 billion generated in fiscal 2016. Organic revenue is projected to decline 2% to grow roughly 2% while adjusted earnings are expected within $1.10-$1.40 per share. Also, the company is exposed to risks arising from foreign currency translation, stiff competition, high debt levels and uncertain economic conditions.”
Several other analysts also recently weighed in on the stock. Bank of America Corp. downgraded shares of Kennametal from a “neutral” rating to an “underperform” rating in a report on Thursday, July 7th. Credit Suisse Group AG reaffirmed a “hold” rating on shares of Kennametal in a report on Saturday, July 9th. Jefferies Group reaffirmed a “buy” rating and issued a $30.00 target price on shares of Kennametal in a report on Sunday, July 17th. Barrington Research lifted their target price on shares of Kennametal from $28.00 to $31.00 and gave the company an “outperform” rating in a report on Wednesday, August 3rd. Finally, Seaport Global Securities downgraded shares of Kennametal from an “accumulate” rating to a “neutral” rating and set a $28.00 target price on the stock. in a report on Thursday, August 18th. Four equities research analysts have rated the stock with a sell rating, five have given a hold rating and two have issued a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of C$24.44.
Shares of Kennametal (NYSE:KMT) traded down 1.52% during mid-day trading on Tuesday, reaching $28.48. 294,527 shares of the company traded hands. Kennametal has a 52 week low of $15.11 and a 52 week high of $29.45. The stock’s 50-day moving average is $28.14 and its 200-day moving average is $24.86. The company’s market capitalization is $2.27 billion.
Kennametal (NYSE:KMT) last issued its quarterly earnings data on Tuesday, August 2nd. The company reported $0.44 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.43 by $0.01. Kennametal had a negative net margin of 10.77% and a positive return on equity of 7.51%. The company had revenue of $521.20 million for the quarter, compared to the consensus estimate of $519.51 million. During the same period last year, the firm posted $0.46 EPS. Kennametal’s revenue for the quarter was down 18.3% on a year-over-year basis. On average, equities analysts predict that Kennametal will post $1.26 EPS for the current fiscal year.
A number of institutional investors have recently made changes to their positions in the company. LS Investment Advisors LLC raised its position in Kennametal by 77.3% in the second quarter. LS Investment Advisors LLC now owns 4,878 shares of the company’s stock worth $108,000 after buying an additional 2,126 shares in the last quarter. Tower Research Capital LLC TRC raised its position in Kennametal by 305.8% in the second quarter. Tower Research Capital LLC TRC now owns 6,136 shares of the company’s stock worth $136,000 after buying an additional 4,624 shares in the last quarter. Bank of Montreal Can purchased a new position in Kennametal during the second quarter worth $150,000. Cantab Capital Partners LLP purchased a new position in Kennametal during the second quarter worth $223,000. Finally, Mackenzie Financial Corp raised its position in Kennametal by 6.2% in the second quarter. Mackenzie Financial Corp now owns 10,287 shares of the company’s stock worth $227,000 after buying an additional 599 shares in the last quarter. Institutional investors own 97.66% of the company’s stock.
Kennametal Company Profile
Kennametal Inc (Kennametal) is a supplier of tooling, engineered components and advanced materials consumed in production processes. The Company manages and reports its business in two segments: Industrial and Infrastructure. The Company provides wear-resistant products, application engineering and services backed by material science, serving customers across diverse sectors of industrial production, transportation, earthworks, energy, infrastructure and aerospace.
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