Kennametal Inc. (NYSE:KMT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.
According to Zacks, “After the release of first-quarter fiscal 2017 results, Kennametal's shares outperformed the Zacks categorized Machine Tools & Related Products industry. Over the long run, Kennametal holds solid organic and inorganic growth opportunities. Also, the company aims at developing sound cost structure by rationalization of certain manufacturing facilities and lowering of costs through employee and cost-reduction programs. For fiscal 2017, the company anticipates adjusted earnings to be within $1.20-$1.50 per share, up from the previous projection of $1.10-$1.40. However, the company is exposed to risks arising from foreign currency translation, stiff competition, high debt levels and uncertain economic conditions. For fiscal 2017, the company increased its effective tax rate range to 20-25%. Over the last 60 days, earnings estimates for the stock remained stable for fiscal 2017 and 2018.”
A number of other analysts have also weighed in on the stock. J P Morgan Chase & Co lowered shares of Kennametal from a “neutral” rating to an “underweight” rating and set a $27.00 price objective on the stock. in a research note on Friday, December 9th. BMO Capital Markets reissued a “market perform” rating and set a $30.00 price target (up from $27.00) on shares of Kennametal in a report on Thursday, November 10th. Goldman Sachs Group, Inc. (The) raised shares of Kennametal from a “neutral” rating to a “buy” rating and increased their price target for the stock from $26.00 to $36.00 in a report on Monday, October 31st. Finally, Jefferies Group reissued a “buy” rating and set a $35.00 price target on shares of Kennametal in a report on Tuesday, October 18th. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating and four have given a buy rating to the company. Kennametal currently has a consensus rating of “Hold” and a consensus target price of $28.42.
Kennametal (NYSE:KMT) traded up 1.45% during mid-day trading on Monday, hitting $34.27. 77,346 shares of the stock were exchanged. The stock’s market cap is $2.74 billion. The stock’s 50 day moving average is $33.17 and its 200 day moving average is $28.84. Kennametal has a 52-week low of $15.11 and a 52-week high of $35.66.
Kennametal (NYSE:KMT) last released its quarterly earnings data on Wednesday, October 26th. The company reported $0.11 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.14 by $0.03. The business earned $477 million during the quarter, compared to analyst estimates of $483.61 million. Kennametal had a positive return on equity of 7.94% and a negative net margin of 11.95%. The firm’s revenue was down 14.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.14 EPS. Analysts forecast that Kennametal will post $1.32 EPS for the current fiscal year.
In other news, insider Judith L. Bacchus sold 4,000 shares of the firm’s stock in a transaction dated Friday, November 11th. The shares were sold at an average price of $33.92, for a total value of $135,680.00. Following the transaction, the insider now directly owns 7,383 shares of the company’s stock, valued at $250,431.36. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 3.00% of the stock is currently owned by insiders.
Several institutional investors have recently bought and sold shares of KMT. BlackRock Fund Advisors increased its position in Kennametal by 49.2% in the second quarter. BlackRock Fund Advisors now owns 3,947,916 shares of the company’s stock valued at $87,288,000 after buying an additional 1,301,505 shares in the last quarter. Adage Capital Partners GP L.L.C. acquired a new position in Kennametal during the third quarter valued at $29,756,000. TIAA CREF Investment Management LLC increased its position in Kennametal by 338.5% in the third quarter. TIAA CREF Investment Management LLC now owns 1,258,707 shares of the company’s stock valued at $36,528,000 after buying an additional 971,653 shares in the last quarter. Vanguard Group Inc. increased its position in Kennametal by 13.4% in the second quarter. Vanguard Group Inc. now owns 6,420,796 shares of the company’s stock valued at $141,963,000 after buying an additional 758,339 shares in the last quarter. Finally, Franklin Resources Inc. acquired a new position in Kennametal during the second quarter valued at $16,574,000. 95.03% of the stock is currently owned by hedge funds and other institutional investors.
Kennametal Company Profile
Kennametal Inc is a supplier of tooling, engineered components and materials consumed in production processes. The Company operates through two segments: Industrial and Infrastructure. The Industrial segment generally serves customers that operate in industrial end markets, such as transportation, general engineering, aerospace and defense.
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