Kennametal (NYSE:KMT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.
According to Zacks, “In the past three months, Kennametal's shares have underperformed the industry. The company is facing issues with higher raw material costs. The company predicts raw material costs — for tungsten, steel and cobalt — to inflate in the fourth quarter of fiscal 2018. However, some relief is likely to come in from favorable pricing. Also, a weak cash position and huge debt levels might be detrimental to the company's financials.”
A number of other research analysts also recently weighed in on KMT. Wells Fargo & Co reissued a “market perform” rating on shares of Kennametal in a research report on Thursday, June 28th. ValuEngine lowered shares of Kennametal from a “hold” rating to a “sell” rating in a report on Saturday, June 2nd. Stifel Nicolaus decreased their price target on shares of Kennametal from $52.00 to $45.00 and set a “hold” rating on the stock in a report on Friday, May 4th. Barrington Research reissued a “buy” rating and issued a $53.00 price target on shares of Kennametal in a report on Tuesday, May 1st. Finally, BMO Capital Markets reissued a “hold” rating and issued a $46.00 price target on shares of Kennametal in a report on Wednesday, April 18th. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and three have issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average price target of $49.18.
Kennametal traded down $0.14, hitting $35.48, during midday trading on Wednesday, Marketbeat.com reports. The stock had a trading volume of 292,790 shares, compared to its average volume of 981,512. Kennametal has a 1-year low of $32.23 and a 1-year high of $52.52. The firm has a market cap of $2.91 billion, a price-to-earnings ratio of 23.34, a PEG ratio of 2.34 and a beta of 2.00. The company has a quick ratio of 1.47, a current ratio of 2.60 and a debt-to-equity ratio of 0.57.
Kennametal (NYSE:KMT) last announced its quarterly earnings data on Wednesday, May 2nd. The industrial products company reported $0.70 earnings per share for the quarter, missing the consensus estimate 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 analyst estimates of $601.10 million. During the same quarter in the prior year, the company posted $0.60 EPS. Kennametal’s revenue for the quarter was up 15.0% on a year-over-year basis. research analysts expect that Kennametal will post 2.6 earnings per share for the current year.
In other news, Director Lawrence W. Stranghoener sold 7,000 shares of the firm’s stock in a transaction dated Monday, June 11th. The shares were sold at an average price of $38.73, for a total value of $271,110.00. Following the completion of the sale, the director now directly owns 26,108 shares of the company’s stock, valued at approximately $1,011,162.84. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 2.00% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of KMT. Schwab Charles Investment Management Inc. grew its stake in shares of Kennametal by 7.1% in the first quarter. Schwab Charles Investment Management Inc. now owns 677,695 shares of the industrial products company’s stock worth $27,217,000 after acquiring an additional 44,643 shares during the period. Jane Street Group LLC grew its position in Kennametal by 219.2% during the fourth quarter. Jane Street Group LLC now owns 17,066 shares of the industrial products company’s stock valued at $826,000 after buying an additional 11,719 shares during the period. Deutsche Bank AG grew its position in Kennametal by 27.6% during the fourth quarter. Deutsche Bank AG now owns 1,178,576 shares of the industrial products company’s stock valued at $57,052,000 after buying an additional 255,176 shares during the period. MANA Advisors LLC bought a new stake in Kennametal during the fourth quarter valued at approximately $395,000. Finally, BlueCrest Capital Management Ltd bought a new stake in Kennametal during the fourth quarter valued at approximately $5,075,000. 99.82% of the stock is owned by institutional investors.
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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