Wasatch Advisors LP Reduces Stock Position in Kadant Inc $KAI

Wasatch Advisors LP lessened its stake in Kadant Inc (NYSE:KAI) by 16.4% in the second quarter, HoldingsChannel reports. The firm owned 868,696 shares of the industrial products company’s stock after selling 169,852 shares during the period. Kadant makes up approximately 1.8% of Wasatch Advisors LP’s holdings, making the stock its 11th largest holding. Wasatch Advisors LP owned about 0.07% of Kadant worth $272,970,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in KAI. CWM LLC lifted its holdings in shares of Kadant by 102.3% during the 4th quarter. CWM LLC now owns 87 shares of the industrial products company’s stock valued at $25,000 after buying an additional 44 shares during the period. Caitong International Asset Management Co. Ltd grew its holdings in shares of Kadant by 1,300.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 84 shares of the industrial products company’s stock worth $25,000 after acquiring an additional 78 shares during the period. Kestra Investment Management LLC purchased a new stake in Kadant during the second quarter valued at $27,000. Kestra Advisory Services LLC purchased a new stake in Kadant during the fourth quarter valued at $27,000. Finally, Danske Bank A S bought a new position in Kadant in the fourth quarter valued at about $29,000. 96.13% of the stock is currently owned by hedge funds and other institutional investors.

Kadant Stock Performance

NYSE:KAI opened at $338.02 on Wednesday. The company has a debt-to-equity ratio of 0.49, a quick ratio of 5.37 and a current ratio of 9.05. The stock has a 50-day simple moving average of $307.87 and a two-hundred day simple moving average of $316.38. The firm has a market capitalization of $3.99 billion, a PE ratio of 36.35 and a beta of 1.20. Kadant Inc has a 52-week low of $244.87 and a 52-week high of $357.65.

Kadant (NYSE:KAI) last posted its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $3.42 EPS for the quarter, topping the consensus estimate of $2.94 by $0.48. Kadant had a return on equity of 13.16% and a net margin of 9.52%.The firm had revenue of $312.88 million for the quarter, compared to the consensus estimate of $299.17 million. During the same quarter last year, the company earned $2.31 earnings per share. The business’s revenue for the quarter was up 22.6% compared to the same quarter last year. Kadant has set its FY 2026 guidance at 12.430-12.680 EPS and its Q3 2026 guidance at 2.900-3.000 EPS. Analysts forecast that Kadant Inc will post 12.54 EPS for the current year.

Kadant announced that its Board of Directors has approved a stock buyback plan on Thursday, May 21st that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the industrial products company to repurchase up to 1.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Kadant Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 13th. Shareholders of record on Thursday, July 16th will be paid a dividend of $0.36 per share. The ex-dividend date is Thursday, July 16th. This represents a $1.44 dividend on an annualized basis and a yield of 0.4%. Kadant’s dividend payout ratio (DPR) is presently 15.48%.

Insiders Place Their Bets

In other Kadant news, SVP Stacy D. Krause sold 1,227 shares of Kadant stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $334.17, for a total transaction of $410,026.59. Following the transaction, the senior vice president owned 1,363 shares of the company’s stock, valued at $455,473.71. The trade was a 47.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 1.30% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. DA Davidson raised their target price on Kadant from $306.00 to $335.00 and gave the stock a “neutral” rating in a research report on Thursday, August 6th. Wall Street Zen upgraded shares of Kadant from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Barrington Research restated an “outperform” rating and set a $380.00 target price on shares of Kadant in a research report on Monday, May 4th. Weiss Ratings lowered shares of Kadant from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, August 3rd. Finally, Zacks Research downgraded shares of Kadant from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 20th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $357.50.

Kadant Company Profile

Kadant Inc, headquartered in Westford, Massachusetts, is a global supplier of high?value, critical components and engineered systems for the pulp and paper industry and other process industries. The company’s product portfolio spans stock preparation technologies, refiners and pulpers, fluid handling systems, and web?handling equipment designed to optimize the efficiency and quality of paper production. In addition to capital equipment, Kadant offers aftermarket services, including spare parts, maintenance programs and process optimization consulting, which together support long?term customer productivity and reliability.

Originally part of a larger industrial conglomerate, Kadant was established as an independent public company in 1991.