Kennametal (NYSE:KMT) Shares Down 6.3% – What’s Next?

Kennametal Inc. (NYSE:KMT)’s share price fell 6.3% during mid-day trading on Wednesday . The company traded as low as $34.45 and last traded at $34.60. 1,062,065 shares traded hands during trading, a decline of 27% from the average session volume of 1,451,817 shares. The stock had previously closed at $36.94.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on KMT. The Goldman Sachs Group set a $32.00 price target on shares of Kennametal in a research note on Friday, February 6th. Jefferies Financial Group downgraded shares of Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price target on the stock. in a research note on Thursday, May 7th. Barclays downgraded shares of Kennametal from an “equal weight” rating to an “underweight” rating and decreased their price target for the company from $40.00 to $33.00 in a research note on Wednesday. Zacks Research downgraded shares of Kennametal from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 11th. Finally, Morgan Stanley upped their price target on shares of Kennametal from $29.00 to $36.00 and gave the company an “equal weight” rating in a research note on Tuesday, February 10th. Six research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Kennametal presently has an average rating of “Reduce” and an average target price of $35.93.

Kennametal Trading Down 6.2%

The firm has a market cap of $2.64 billion, a PE ratio of 19.58, a P/E/G ratio of 0.23 and a beta of 1.44. The company has a quick ratio of 0.99, a current ratio of 2.38 and a debt-to-equity ratio of 0.43. The company’s 50 day moving average price is $37.18 and its two-hundred day moving average price is $34.29.

Kennametal (NYSE:KMT) last announced its earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.09. Kennametal had a net margin of 6.41% and a return on equity of 11.02%. The business had revenue of $592.59 million for the quarter, compared to the consensus estimate of $568.03 million. During the same quarter in the prior year, the firm posted $0.47 earnings per share. The business’s revenue for the quarter was up 21.8% on a year-over-year basis. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, sell-side analysts forecast that Kennametal Inc. will post 2.99 EPS for the current year.

Kennametal Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Tuesday, May 12th were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend was Tuesday, May 12th. Kennametal’s dividend payout ratio (DPR) is currently 45.20%.

Insider Buying and Selling

In related news, VP Carlonda R. Reilly sold 13,410 shares of the firm’s stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $36.31, for a total value of $486,917.10. Following the transaction, the vice president owned 38,746 shares of the company’s stock, valued at $1,406,867.26. This trade represents a 25.71% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 1.43% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Gallacher Capital Management LLC purchased a new position in Kennametal in the 3rd quarter worth about $571,000. Vanguard Group Inc. increased its stake in Kennametal by 1.8% in the 3rd quarter. Vanguard Group Inc. now owns 9,001,984 shares of the industrial products company’s stock worth $188,412,000 after buying an additional 155,566 shares during the period. SG Americas Securities LLC increased its stake in Kennametal by 3,273.8% in the 4th quarter. SG Americas Securities LLC now owns 274,260 shares of the industrial products company’s stock worth $7,792,000 after buying an additional 266,131 shares during the period. Dana Investment Advisors Inc. increased its stake in Kennametal by 38.2% in the 3rd quarter. Dana Investment Advisors Inc. now owns 307,544 shares of the industrial products company’s stock worth $6,437,000 after buying an additional 85,032 shares during the period. Finally, Public Sector Pension Investment Board increased its stake in Kennametal by 27.6% in the 3rd quarter. Public Sector Pension Investment Board now owns 331,663 shares of the industrial products company’s stock worth $6,942,000 after buying an additional 71,732 shares during the period.

About Kennametal

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.