Kennametal (NYSE:KMT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday. The firm presently has a $44.00 target price on the industrial products company’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 11.96% from the stock’s current price.
According to Zacks, “Over the last month Kennametal's shares have outperformed the industry. In third-quarter fiscal 2018, the company's top line surpassed the Zacks Consensus Estimate by 1.5% while increased 15% year over year. Also, the company's bottom line increased 16.7% year over year. For fiscal 2018, the company raised its adjusted earnings-per-share guidance to $2.55-$2.65, with the mid-point increasing from $2.55 to $2.60. Organic sales growth is predicted to be at the top end of the prior projection of 9-11%. In the quarters ahead, we believe that the company will gain from its diversified customer base, international operations, favorable pricing and three initiatives, including growth, modernization and simplification. Also, its shareholder-friendly policies will work in its favor. It will soon pay a quarterly dividend of 20 cents per share to its common shareholders.”
Other equities research analysts have also recently issued reports about the stock. Barrington Research restated a “buy” rating and set a $53.00 price objective on shares of Kennametal in a research note on Tuesday, May 1st. ValuEngine upgraded shares of Kennametal from a “hold” rating to a “buy” rating in a research report on Friday, February 2nd. Barclays initiated coverage on shares of Kennametal in a research report on Thursday, February 15th. They issued an “equal weight” rating and a $47.00 price target on the stock. BMO Capital Markets reiterated a “hold” rating and issued a $46.00 price target on shares of Kennametal in a research report on Wednesday, April 18th. Finally, JPMorgan Chase & Co. dropped their price target on shares of Kennametal from $48.00 to $45.00 and set a “hold” rating on the stock in a research report on Tuesday, April 10th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus target price of $49.18.
KMT stock traded up $0.16 during mid-day trading on Thursday, reaching $39.30. The company had a trading volume of 26,079 shares, compared to its average volume of 1,009,912. Kennametal has a one year low of $32.23 and a one year high of $52.52. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.47 and a current ratio of 2.60. The stock has a market capitalization of $3.24 billion, a price-to-earnings ratio of 25.77, a PEG ratio of 3.06 and a beta of 2.05.
Kennametal (NYSE:KMT) last issued its quarterly earnings data on Wednesday, May 2nd. The industrial products company reported $0.70 earnings per share for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.02). Kennametal had a net margin of 6.83% and a return on equity of 17.01%. The company had revenue of $607.94 million for the quarter, compared to the consensus estimate of $601.10 million. During the same quarter in the prior year, the firm earned $0.60 earnings per share. Kennametal’s revenue for the quarter was up 15.0% compared to the same quarter last year. analysts predict that Kennametal will post 2.6 EPS for the current fiscal year.
Institutional investors and hedge funds have recently modified their holdings of the stock. Prescott Group Capital Management L.L.C. purchased a new position in Kennametal during the 1st quarter valued at about $201,000. Silvant Capital Management LLC purchased a new position in Kennametal during the 1st quarter valued at about $209,000. Koch Industries Inc. purchased a new position in Kennametal during the 1st quarter valued at about $220,000. Gideon Capital Advisors Inc. purchased a new position in Kennametal during the 1st quarter valued at about $229,000. Finally, Quadrature Capital Ltd purchased a new position in Kennametal during the 1st quarter valued at about $237,000. 98.11% of the stock is currently owned by hedge funds and other institutional investors.
Kennametal Company Profile
Kennametal Inc develops and applies tungsten carbides, ceramics, super-hard materials, and solutions for use in metal cutting and mission-critical wear applications to combat extreme conditions related with wear fatigue, corrosion, and high temperatures worldwide. It operates through three segments: Industrial, Widia, and Infrastructure.
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