Kemet (KEM) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Kemet (NYSE:KEM) from a hold rating to a sell rating in a research report released on Tuesday morning.

According to Zacks, “KEMET Corporation and its subsidiaries is the world’s largest manufacturer of solid tantalum capacitors and and one of the world’s largest manufacturer of multilayer ceramic capacitors. According to industry sources, tantalum and ceramic capacitors are the two fastest growing sectors of the United States capacitor industry. Capacitors are electronic components that store, filter and regulate electrical energy and current flow and are one of the essential passive components used on circuit boards. “

A number of other research firms have also recently weighed in on KEM. ValuEngine raised shares of Kemet from a hold rating to a buy rating in a research note on Friday, September 1st. B. Riley reaffirmed a buy rating and set a $27.50 target price on shares of Kemet in a research note on Tuesday, October 31st. BidaskClub cut shares of Kemet from a strong-buy rating to a buy rating in a research note on Tuesday, August 22nd. Stifel Nicolaus reaffirmed a hold rating on shares of Kemet in a research note on Monday, August 7th. Finally, TheStreet cut shares of Kemet from a b rating to a c rating in a research note on Thursday, November 2nd. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and two have issued a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus target price of $22.50.

Shares of Kemet (NYSE:KEM) traded down $0.37 on Tuesday, reaching $14.35. 2,287,400 shares of the company’s stock traded hands, compared to its average volume of 1,476,415. Kemet has a 1-year low of $5.78 and a 1-year high of $27.35. The firm has a market capitalization of $829.94, a P/E ratio of 15.18 and a beta of 3.44. The company has a current ratio of 2.51, a quick ratio of 1.73 and a debt-to-equity ratio of 0.75.

Kemet (NYSE:KEM) last announced its quarterly earnings data on Thursday, November 2nd. The electronics maker reported $0.45 EPS for the quarter, beating the consensus estimate of $0.43 by $0.02. The business had revenue of $301.47 million during the quarter, compared to the consensus estimate of $298.51 million. Kemet had a net margin of 31.16% and a return on equity of 21.07%. The company’s revenue was up 60.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.13 earnings per share. equities analysts expect that Kemet will post 1.44 earnings per share for the current year.

In related news, CFO William M. Lowe, Jr. sold 21,903 shares of the business’s stock in a transaction on Tuesday, November 7th. The shares were sold at an average price of $16.08, for a total value of $352,200.24. Following the sale, the chief financial officer now owns 523,038 shares of the company’s stock, valued at $8,410,451.04. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 3.88% of the company’s stock.

Institutional investors have recently modified their holdings of the stock. Public Employees Retirement System of Ohio bought a new stake in Kemet during the third quarter valued at $656,000. GSA Capital Partners LLP bought a new stake in Kemet during the third quarter valued at $737,000. Sterling Capital Management LLC bought a new stake in Kemet during the third quarter valued at $761,000. Piedmont Investment Advisors LLC bought a new stake in Kemet during the third quarter valued at $225,000. Finally, California Public Employees Retirement System boosted its position in Kemet by 12.9% during the third quarter. California Public Employees Retirement System now owns 141,211 shares of the electronics maker’s stock valued at $2,984,000 after acquiring an additional 16,111 shares during the last quarter. 69.90% of the stock is currently owned by institutional investors.

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About Kemet

KEMET Corporation (KEMET) is a manufacturer of passive electronic components. The Company operates in two segments: Solid Capacitors, and Film and Electrolytic. The Solid Capacitors segment primarily produces tantalum, aluminum, polymer and ceramic capacitors. Solid Capacitors also produces tantalum powder used in the production of tantalum capacitors.

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