Kennametal (NYSE:KMT) Hits New 12-Month Low After Earnings Miss

Kennametal Inc. (NYSE:KMT) shares hit a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $20.50 and last traded at $22.23, with a volume of 65580 shares trading hands. The stock had previously closed at $23.46.

The industrial products company reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.27 by ($0.02). Kennametal had a return on equity of 8.35% and a net margin of 4.98%.

Kennametal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 25th. Shareholders of record on Tuesday, February 11th will be given a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 3.51%. The ex-dividend date is Tuesday, February 11th. Kennametal’s dividend payout ratio is 62.50%.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. StockNews.com raised shares of Kennametal from a “hold” rating to a “buy” rating in a research report on Monday, January 27th. Jefferies Financial Group lowered Kennametal from a “buy” rating to a “hold” rating and lowered their price objective for the company from $40.00 to $32.00 in a report on Friday, December 6th. Loop Capital upped their target price on Kennametal from $24.00 to $26.00 and gave the stock a “hold” rating in a research report on Tuesday, November 19th. Bank of America lowered shares of Kennametal from a “neutral” rating to an “underperform” rating and set a $26.00 price target on the stock. in a research report on Friday, October 18th. Finally, Barclays decreased their price objective on shares of Kennametal from $31.00 to $30.00 and set an “equal weight” rating for the company in a report on Wednesday, January 8th. Two analysts have rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $27.67.

Insider Activity at Kennametal

In other news, VP Franklin Cardenas sold 20,470 shares of Kennametal stock in a transaction dated Wednesday, December 4th. The shares were sold at an average price of $28.24, for a total transaction of $578,072.80. Following the sale, the vice president now directly owns 39,581 shares in the company, valued at approximately $1,117,767.44. The trade was a 34.09 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP John Wayne Witt sold 1,765 shares of the stock in a transaction dated Friday, November 22nd. The stock was sold at an average price of $29.35, for a total transaction of $51,802.75. Following the completion of the transaction, the vice president now directly owns 1,642 shares of the company’s stock, valued at $48,192.70. This trade represents a 51.81 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.41% of the company’s stock.

Institutional Investors Weigh In On Kennametal

A number of institutional investors have recently added to or reduced their stakes in the stock. Wilmington Savings Fund Society FSB bought a new position in shares of Kennametal during the 3rd quarter worth approximately $30,000. Blue Trust Inc. lifted its holdings in shares of Kennametal by 120.9% during the fourth quarter. Blue Trust Inc. now owns 1,308 shares of the industrial products company’s stock valued at $34,000 after acquiring an additional 716 shares during the period. GAMMA Investing LLC boosted its stake in shares of Kennametal by 45.9% in the 4th quarter. GAMMA Investing LLC now owns 1,458 shares of the industrial products company’s stock valued at $35,000 after purchasing an additional 459 shares in the last quarter. Signaturefd LLC grew its holdings in shares of Kennametal by 98.7% in the 3rd quarter. Signaturefd LLC now owns 2,029 shares of the industrial products company’s stock worth $53,000 after purchasing an additional 1,008 shares during the last quarter. Finally, KBC Group NV increased its position in shares of Kennametal by 50.3% during the 4th quarter. KBC Group NV now owns 3,351 shares of the industrial products company’s stock worth $80,000 after purchasing an additional 1,122 shares in the last quarter.

Kennametal Stock Down 2.9 %

The firm has a market cap of $1.77 billion, a price-to-earnings ratio of 17.79, a PEG ratio of 2.32 and a beta of 1.66. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.16 and a current ratio of 2.52. The business’s 50-day moving average is $25.09 and its 200-day moving average is $25.64.

Kennametal Company Profile

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.