Kennametal (NYSE:KMT) Stock Price Down 6.8% – Should You Sell?

Kennametal Inc. (NYSE:KMT)’s stock price dropped 6.8% on Friday . The company traded as low as $36.97 and last traded at $37.29. Approximately 411,819 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 1,512,248 shares. The stock had previously closed at $40.02.

Wall Street Analyst Weigh In

Several research firms have weighed in on KMT. Barclays raised their price objective on shares of Kennametal from $28.00 to $40.00 and gave the company an “equal weight” rating in a research report on Monday, February 9th. Morgan Stanley raised their price objective on shares of Kennametal from $29.00 to $36.00 and gave the company an “equal weight” rating in a research note on Tuesday, February 10th. Zacks Research upgraded shares of Kennametal from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, November 12th. Weiss Ratings upgraded Kennametal from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, February 24th. Finally, JPMorgan Chase & Co. upped their price objective on Kennametal from $25.00 to $37.00 and gave the company an “underweight” rating in a report on Wednesday, January 14th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Kennametal currently has a consensus rating of “Hold” and an average price target of $34.67.

Kennametal Price Performance

The firm has a 50 day moving average price of $35.57 and a two-hundred day moving average price of $28.00. The company has a market cap of $2.87 billion, a P/E ratio of 26.29, a P/E/G ratio of 0.71 and a beta of 1.47. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.14 and a current ratio of 2.55.

Kennametal (NYSE:KMT) last released its quarterly earnings data on Wednesday, February 4th. The industrial products company reported $0.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.35 by $0.12. The company had revenue of $529.53 million for the quarter, compared to analyst estimates of $514.70 million. Kennametal had a return on equity of 9.46% and a net margin of 5.43%.The firm’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 company posted $0.25 EPS. Kennametal has set its Q3 2026 guidance at 0.500-0.600 EPS and its FY 2026 guidance at 2.050-2.450 EPS. On average, analysts predict that Kennametal Inc. will post 1.17 EPS for the current fiscal year.

Kennametal Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, February 24th. Investors of record on Tuesday, February 10th were given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 2.1%. The ex-dividend date was Tuesday, February 10th. Kennametal’s payout ratio is presently 55.94%.

Insider Activity

In related news, VP John Wayne Witt sold 5,060 shares of the company’s stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $38.29, for a total value of $193,747.40. Following the completion of the transaction, the vice president directly owned 1,634 shares in the company, valued at approximately $62,565.86. The trade was a 75.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.43% of the company’s stock.

Institutional Investors Weigh In On Kennametal

A number of large investors have recently made changes to their positions in KMT. Apollo Management Holdings L.P. purchased a new position in Kennametal in the second quarter worth about $8,794,000. JPMorgan Chase & Co. boosted its holdings in shares of Kennametal by 33.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 739,836 shares of the industrial products company’s stock valued at $16,987,000 after acquiring an additional 185,207 shares during the last quarter. Gallacher Capital Management LLC purchased a new position in shares of Kennametal during the third quarter valued at approximately $571,000. Azarias Capital Management L.P. raised its holdings in shares of Kennametal by 31.8% during the third quarter. Azarias Capital Management L.P. now owns 364,357 shares of the industrial products company’s stock valued at $7,626,000 after purchasing an additional 87,906 shares during the last quarter. Finally, Savant Capital LLC bought a new position in Kennametal during the second quarter valued at approximately $335,000.

About Kennametal

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.