Kennametal (NYSE:KMT) Stock Breaks Above Fifty Day Moving Average – Should You Sell?

Kennametal Inc. (NYSE:KMT) shares passed above its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $30.98 and traded as high as $33.64. Kennametal shares last traded at $33.4290, with a volume of 1,324,441 shares changing hands.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Zacks Research upgraded Kennametal from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, September 15th. DA Davidson decreased their price target on shares of Kennametal from $34.00 to $30.00 and set a “neutral” rating on the stock in a research note on Tuesday, August 11th. Morgan Stanley lowered shares of Kennametal from an “equal weight” rating to an “underweight” rating and lowered their price target for the stock from $31.00 to $27.00 in a research report on Monday, August 10th. JPMorgan Chase & Co. dropped their price objective on shares of Kennametal from $34.00 to $30.00 and set an “underweight” rating for the company in a research note on Thursday. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Kennametal in a report on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $33.50.

Kennametal Trading Down 1.5%

The business has a 50-day moving average price of $30.95 and a two-hundred day moving average price of $34.09. The stock has a market capitalization of $2.43 billion, a P/E ratio of 7.22, a P/E/G ratio of 0.32 and a beta of 1.33. The company has a current ratio of 2.62, a quick ratio of 0.98 and a debt-to-equity ratio of 0.42.

Kennametal (NYSE:KMT) last issued its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $2.96 EPS for the quarter, topping analysts’ consensus estimates of $2.31 by $0.65. Kennametal had a return on equity of 24.83% and a net margin of 14.53%.The company had revenue of $736.61 million for the quarter, compared to analysts’ expectations of $725.74 million. During the same quarter last year, the business earned $0.34 earnings per share. Kennametal’s revenue was up 42.6% on a year-over-year basis. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. On average, analysts expect that Kennametal Inc. will post 4.92 EPS for the current fiscal year.

Kennametal Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 11th were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend was Tuesday, August 11th. Kennametal’s dividend payout ratio is 18.18%.

Insider Activity at Kennametal

In other Kennametal news, CEO Sanjay Chowbey bought 7,000 shares of the business’s stock in a transaction on Thursday, September 10th. The stock was purchased at an average cost of $29.10 per share, for a total transaction of $203,700.00. Following the completion of the purchase, the chief executive officer directly owned 246,839 shares of the company’s stock, valued at approximately $7,183,014.90. This trade represents a 2.92% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Judith L. Bacchus sold 9,676 shares of the firm’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $30.29, for a total value of $293,086.04. Following the completion of the sale, the vice president directly owned 15,721 shares in the company, valued at approximately $476,189.09. This represents a 38.10% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.65% of the company’s stock.

Hedge Funds Weigh In On Kennametal

Institutional investors have recently modified their holdings of the business. Allworth Financial LP acquired a new stake in Kennametal in the second quarter valued at about $25,000. Rockefeller Capital Management L.P. grew its position in Kennametal by 3,600.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company’s stock valued at $28,000 after acquiring an additional 972 shares during the last quarter. Nykredit A S acquired a new position in Kennametal during the second quarter worth about $37,000. Integrated Wealth Concepts LLC bought a new position in shares of Kennametal in the second quarter worth about $44,000. Finally, C M Bidwell & Associates Ltd. bought a new position in shares of Kennametal in the second quarter worth about $70,000.

About Kennametal

Kennametal Inc (NYSE: KMT) is an industrial technology company that develops and manufactures tooling, engineered components, and wear-resistant solutions. Its products are designed to help customers machine, shape, and protect materials used in demanding industrial applications.

The company’s offerings include cutting tools and tooling systems for metalworking, as well as engineered components, advanced materials, and surface technologies intended to improve durability and performance.