Kadant (NYSE:KAI) Cut to Sell at Zacks Investment Research

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Zacks Investment Research downgraded shares of Kadant (NYSE:KAI) from a hold rating to a sell rating in a research report report published on Saturday, Zacks.com reports.

According to Zacks, “Kadant Inc. is a leading supplier of a range of products and systems for the global papermaking and paper-recycling industries, including de-inking systems, stock-preparation equipment, water-management systems, and papermaking accessories. Through its majority-owned Thermo Fibergen subsidiary, the company also develops and commercializes composite building materials produced from natural fiber and recycled plastic. Kadant is a public subsidiary of Thermo Electron Corporation.(Press Release) “

A number of other research analysts have also weighed in on the company. Seaport Global Securities lowered Kadant from a buy rating to a neutral rating and set a $97.09 target price on the stock. in a report on Thursday, May 2nd. ValuEngine lowered Kadant from a hold rating to a sell rating in a report on Thursday, August 1st. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and two have given a buy rating to the company. The company presently has a consensus rating of Hold and a consensus target price of $103.55.

KAI stock opened at $83.09 on Friday. The company has a debt-to-equity ratio of 0.94, a current ratio of 2.07 and a quick ratio of 1.35. The firm has a market cap of $945.66 million, a price-to-earnings ratio of 14.47 and a beta of 1.24. Kadant has a 1-year low of $76.44 and a 1-year high of $111.85. The business’s 50 day simple moving average is $88.95.

Kadant (NYSE:KAI) last posted its earnings results on Tuesday, July 30th. The industrial products company reported $1.42 earnings per share for the quarter, topping analysts’ consensus estimates of $1.11 by $0.31. The business had revenue of $177.20 million for the quarter, compared to analyst estimates of $168.67 million. Kadant had a return on equity of 18.01% and a net margin of 9.50%. The firm’s revenue was up 14.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.07 EPS. As a group, research analysts predict that Kadant will post 5.31 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 8th. Shareholders of record on Thursday, July 11th will be issued a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a yield of 1.11%. The ex-dividend date of this dividend is Wednesday, July 10th.

In other Kadant news, Chairman Jonathan W. Painter sold 10,000 shares of the company’s stock in a transaction on Wednesday, July 31st. The stock was sold at an average price of $93.67, for a total value of $936,700.00. Following the transaction, the chairman now directly owns 94,117 shares of the company’s stock, valued at approximately $8,815,939.39. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Jonathan W. Painter sold 10,096 shares of the company’s stock in a transaction on Friday, May 17th. The shares were sold at an average price of $88.73, for a total value of $895,818.08. Following the completion of the transaction, the chief executive officer now directly owns 101,437 shares in the company, valued at $9,000,505.01. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 91,949 shares of company stock worth $8,329,452. Insiders own 5.50% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the business. Wasatch Advisors Inc. lifted its position in shares of Kadant by 7.5% during the 1st quarter. Wasatch Advisors Inc. now owns 1,123,588 shares of the industrial products company’s stock valued at $98,831,000 after acquiring an additional 78,147 shares during the period. Millennium Management LLC lifted its position in shares of Kadant by 1,212.7% during the 4th quarter. Millennium Management LLC now owns 69,942 shares of the industrial products company’s stock valued at $5,697,000 after acquiring an additional 64,614 shares during the period. Pictet Asset Management Ltd. lifted its position in shares of Kadant by 53.7% during the 1st quarter. Pictet Asset Management Ltd. now owns 124,044 shares of the industrial products company’s stock valued at $10,911,000 after acquiring an additional 43,344 shares during the period. Handelsbanken Fonder AB lifted its position in shares of Kadant by 5.9% during the 2nd quarter. Handelsbanken Fonder AB now owns 644,300 shares of the industrial products company’s stock valued at $58,509,000 after acquiring an additional 36,000 shares during the period. Finally, Royce & Associates LP lifted its position in shares of Kadant by 2.8% during the 1st quarter. Royce & Associates LP now owns 589,315 shares of the industrial products company’s stock valued at $51,836,000 after acquiring an additional 16,030 shares during the period. 92.72% of the stock is currently owned by hedge funds and other institutional investors.

Kadant Company Profile

Kadant Inc supplies equipment and critical components used in papermaking, paper recycling, recycling and waste management, and other process industries worldwide. The company operates in two segments, Papermaking Systems and Wood Processing Systems. The Papermaking Systems segment develops, manufactures, and markets custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper and balers, as well as related equipment used in the processing of recyclable and waste materials; and fluid-handling systems and equipment used in industrial piping systems to compensate for movement, as well as to transfer fluid, power, and data.

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