Zacks Investment Research upgraded shares of Kennametal (NYSE:KMT) from a hold rating to a buy rating in a report issued on Friday morning. They currently have $45.00 target price on the industrial products company’s stock.
According to Zacks, “In the past three months, Kennametal's shares have outperformed the industry. The company believes sturdier demand from prime end-markets (such as aerospace, automotive, machine tool, farm machinery, highway construction, coal mining, and oil and gas exploration) will continue to bolster its revenues in the upcoming quarters. On the other hand, stellar sales, price-realization efforts, diligent cost-cutting initiatives and restructuring moves (such as head-count reduction) will likely continue to drive its bottom-line growth in the quarters ahead. Notably, the company expects that its restructuring moves will bring in annualized pre-tax savings of roughly $10 million in fiscal 2019. For fiscal 2019, the Kennametal predicts adjusted earnings per share to be within $2.90-$3.20, higher than $2.65 recorded in fiscal 2018.”
Several other equities research analysts have also recently commented on the stock. Goldman Sachs Group assumed coverage on shares of Kennametal in a research report on Tuesday, October 2nd. They set a buy rating and a $53.00 price target on the stock. Longbow Research raised shares of Kennametal from a neutral rating to a buy rating and set a $50.00 price target on the stock in a research report on Monday, September 10th. Stifel Nicolaus reissued a hold rating and set a $47.00 price target on shares of Kennametal in a research report on Thursday, August 9th. BMO Capital Markets boosted their price target on shares of Kennametal from $42.00 to $46.00 and gave the stock a market perform rating in a research report on Wednesday, August 8th. Finally, Barclays reissued a hold rating and set a $44.00 price target on shares of Kennametal in a research report on Wednesday, August 8th. Two research analysts have rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the stock. Kennametal has a consensus rating of Hold and an average price target of $49.54.
NYSE:KMT traded down $1.14 on Friday, hitting $38.61. 1,161,762 shares of the company’s stock were exchanged, compared to its average volume of 956,679. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.74 and a quick ratio of 1.15. Kennametal has a 52 week low of $34.37 and a 52 week high of $52.52. The stock has a market capitalization of $3.57 billion, a PE ratio of 14.57, a price-to-earnings-growth ratio of 2.77 and a beta of 2.02.
Kennametal (NYSE:KMT) last issued its quarterly earnings results on Monday, August 6th. The industrial products company reported $0.87 EPS for the quarter, topping the consensus estimate of $0.80 by $0.07. Kennametal had a net margin of 8.45% and a return on equity of 18.60%. The firm had revenue of $646.11 million for the quarter, compared to analysts’ expectations of $631.48 million. During the same period in the previous year, the firm posted $0.56 EPS. The company’s revenue for the quarter was up 14.4% on a year-over-year basis. On average, analysts anticipate that Kennametal will post 3.14 earnings per share for the current fiscal year.
In related news, VP Michelle R. Keating sold 988 shares of the company’s stock in a transaction dated Monday, September 10th. The shares were sold at an average price of $42.20, for a total value of $41,693.60. Following the transaction, the vice president now owns 14,676 shares in the company, valued at approximately $619,327.20. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Gaalen Jan Kees Van sold 13,606 shares of the company’s stock in a transaction dated Wednesday, September 5th. The shares were sold at an average price of $41.09, for a total transaction of $559,070.54. Following the completion of the transaction, the vice president now owns 68,827 shares in the company, valued at approximately $2,828,101.43. The disclosure for this sale can be found here. 2.00% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently made changes to their positions in KMT. Fuller & Thaler Asset Management Inc. grew its stake in Kennametal by 94.0% in the 2nd quarter. Fuller & Thaler Asset Management Inc. now owns 2,120,564 shares of the industrial products company’s stock valued at $76,128,000 after buying an additional 1,027,424 shares during the last quarter. Eagle Asset Management Inc. grew its stake in Kennametal by 195.4% in the 2nd quarter. Eagle Asset Management Inc. now owns 1,100,769 shares of the industrial products company’s stock valued at $39,517,000 after buying an additional 728,189 shares during the last quarter. Carillon Tower Advisers Inc. acquired a new position in Kennametal in the 2nd quarter valued at about $24,187,000. Advisors Asset Management Inc. grew its stake in Kennametal by 39,914.5% in the 2nd quarter. Advisors Asset Management Inc. now owns 641,432 shares of the industrial products company’s stock valued at $155,000 after buying an additional 639,829 shares during the last quarter. Finally, Renaissance Technologies LLC acquired a new position in Kennametal in the 2nd quarter valued at about $19,846,000. Institutional investors and hedge funds own 99.83% of the company’s stock.
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. The company operates through three segments: Industrial, Widia, and Infrastructure.
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