Kennametal (NYSE:KMT) Shares Gap Down After Analyst Downgrade

Kennametal Inc. (NYSE:KMT) gapped down before the market opened on Tuesday after BMO Capital Markets lowered their price target on the stock from $30.50 to $25.00. The stock had previously closed at $30.44, but opened at $29.80. BMO Capital Markets currently has a market perform rating on the stock. Kennametal shares last traded at $31.27, with a volume of 143,960 shares.

Several other research firms have also recently issued reports on KMT. Wells Fargo & Co cut their price target on shares of Kennametal from $34.00 to $32.00 and set a “market perform” rating for the company in a report on Tuesday, October 15th. Goldman Sachs Group cut shares of Kennametal from a “buy” rating to a “sell” rating and cut their price target for the stock from $43.00 to $30.00 in a report on Tuesday, July 16th. Longbow Research cut shares of Kennametal from a “buy” rating to a “neutral” rating in a report on Tuesday. TheStreet cut shares of Kennametal from a “b-” rating to a “c+” rating in a report on Tuesday, August 27th. Finally, Bank of America cut their price target on shares of Kennametal from $30.00 to $27.00 and set an “underperform” rating for the company in a report on Tuesday, August 6th. Four investment analysts have rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating to the stock. Kennametal currently has an average rating of “Hold” and an average price target of $32.75.

In other Kennametal news, Director Cindy L. Davis sold 4,644 shares of the company’s stock in a transaction dated Wednesday, September 11th. The shares were sold at an average price of $34.15, for a total transaction of $158,592.60. Following the transaction, the director now directly owns 11,529 shares in the company, valued at $393,715.35. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 1.48% of the company’s stock.

A number of institutional investors and hedge funds have recently modified their holdings of KMT. Nuveen Asset Management LLC grew its position in Kennametal by 752.3% during the second quarter. Nuveen Asset Management LLC now owns 680,895 shares of the industrial products company’s stock worth $25,187,000 after buying an additional 601,004 shares during the period. AQR Capital Management LLC grew its position in Kennametal by 514.5% during the second quarter. AQR Capital Management LLC now owns 672,290 shares of the industrial products company’s stock worth $23,940,000 after buying an additional 562,886 shares during the period. William Blair Investment Management LLC acquired a new position in Kennametal during the second quarter worth about $16,113,000. Invesco Ltd. grew its position in Kennametal by 11.2% during the second quarter. Invesco Ltd. now owns 2,789,651 shares of the industrial products company’s stock worth $103,189,000 after buying an additional 281,656 shares during the period. Finally, BlackRock Inc. grew its position in Kennametal by 1.5% during the second quarter. BlackRock Inc. now owns 9,669,598 shares of the industrial products company’s stock worth $357,679,000 after buying an additional 147,035 shares during the period. Institutional investors own 97.99% of the company’s stock.

The company has a debt-to-equity ratio of 0.43, a current ratio of 2.58 and a quick ratio of 1.34. The firm’s 50-day simple moving average is $30.35 and its two-hundred day simple moving average is $33.47. The company has a market capitalization of $2.54 billion, a price-to-earnings ratio of 10.23, a price-to-earnings-growth ratio of 1.29 and a beta of 2.26.

Kennametal (NYSE:KMT) last released its quarterly earnings results on Monday, August 5th. The industrial products company reported $0.84 EPS for the quarter, missing the consensus estimate of $0.86 by ($0.02). The business had revenue of $603.95 million during the quarter, compared to analyst estimates of $643.95 million. Kennametal had a net margin of 10.19% and a return on equity of 18.97%. The firm’s revenue for the quarter was down 6.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.87 earnings per share. On average, analysts expect that Kennametal Inc. will post 2.87 EPS for the current fiscal year.

Kennametal Company Profile (NYSE:KMT)

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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