Kennametal (NYSE:KMT) Shares Gap Up Following Strong Earnings

Shares of Kennametal Inc. (NYSE:KMT) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $35.76, but opened at $39.50. Kennametal shares last traded at $39.3640, with a volume of 144,701 shares.

The industrial products company reported $0.47 EPS for the quarter, topping the consensus estimate of $0.33 by $0.14. The firm had revenue of $529.53 million for the quarter, compared to analysts’ expectations of $514.70 million. Kennametal had a net margin of 4.76% and a return on equity of 8.35%. Kennametal’s revenue for the quarter was up 9.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.25 earnings per share.

Kennametal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 24th. Stockholders of record on Tuesday, February 10th will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $0.80 annualized dividend and a dividend yield of 2.0%. Kennametal’s dividend payout ratio (DPR) is currently 65.57%.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Barclays upped their price objective on shares of Kennametal from $25.00 to $28.00 and gave the company an “equal weight” rating in a research note on Wednesday, January 7th. The Goldman Sachs Group restated a “sell” rating and issued a $28.00 price target on shares of Kennametal in a research report on Tuesday, January 27th. Wall Street Zen upgraded Kennametal from a “buy” rating to a “strong-buy” rating in a report on Saturday, November 29th. Weiss Ratings reissued a “hold (c)” rating on shares of Kennametal in a research report on Thursday, January 22nd. Finally, JPMorgan Chase & Co. upped their target price on Kennametal from $25.00 to $37.00 and gave the company an “underweight” rating in a report on Wednesday, January 14th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $29.67.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. OLD National Bancorp IN increased its position in Kennametal by 3.8% during the fourth quarter. OLD National Bancorp IN now owns 10,226 shares of the industrial products company’s stock worth $291,000 after buying an additional 377 shares during the last quarter. Smartleaf Asset Management LLC grew its holdings in Kennametal by 21.3% during the third quarter. Smartleaf Asset Management LLC now owns 2,537 shares of the industrial products company’s stock valued at $53,000 after purchasing an additional 446 shares during the last quarter. PNC Financial Services Group Inc. lifted its stake in shares of Kennametal by 8.1% in the third quarter. PNC Financial Services Group Inc. now owns 6,159 shares of the industrial products company’s stock worth $129,000 after buying an additional 461 shares during the last quarter. State of Alaska Department of Revenue grew its stake in Kennametal by 1.2% in the 4th quarter. State of Alaska Department of Revenue now owns 42,796 shares of the industrial products company’s stock valued at $1,215,000 after buying an additional 492 shares during the last quarter. Finally, Headlands Technologies LLC boosted its holdings in Kennametal by 80.7% during the second quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company’s stock valued at $35,000 after acquiring an additional 682 shares during the period.

Kennametal Stock Performance

The stock has a market cap of $3.08 billion, a P/E ratio of 33.01, a P/E/G ratio of 4.22 and a beta of 1.50. The firm has a 50 day moving average of $30.57 and a two-hundred day moving average of $25.51. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.18 and a current ratio of 2.60.

Kennametal Company Profile

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.