Kennametal (KMT) Downgraded by Zacks Investment Research to “Hold”

Kennametal (NYSE:KMT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.

According to Zacks, “Month to date, Kennametal's shares have outperformed the industry. In third-quarter fiscal 2018, the company's top line surpassed the Zacks Consensus Estimate by 1.5% while increased 15% year over year. Also, the company's bottom line increased 16.7% year over year. For fiscal 2018, the company raised its adjusted earnings-per-share guidance to $2.55-$2.65, with the mid-point increasing from $2.55 to $2.60. Organic sales growth is predicted to be at the top end of the prior projection of 9-11%. In the quarters ahead, we believe that the company will gain from its diversified customer base, international operations, favorable pricing and three initiatives, including growth, modernization and simplification. However, the company is exposed to risks from foreign currency translation, stiff competition and high debt levels. Costs of raw materials are predicted to inflate in the fourth quarter.”

Several other analysts have also recently commented on the stock. Jefferies Group reiterated a “buy” rating and set a $60.00 target price on shares of Kennametal in a research report on Thursday, January 18th. Bank of America upped their target price on shares of Kennametal from $51.00 to $52.00 and gave the company a “neutral” rating in a research report on Friday, February 2nd. JPMorgan Chase cut shares of Kennametal from an “overweight” rating to a “neutral” rating in a research report on Monday, February 5th. Wells Fargo reiterated an “outperform” rating and set a $48.00 target price (down previously from $53.00) on shares of Kennametal in a research report on Thursday, April 19th. They noted that the move was a valuation call. Finally, Barclays started coverage on shares of Kennametal in a research report on Thursday, February 15th. They set an “equal weight” rating and a $47.00 target price for the company. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have issued a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus target price of $49.18.

Shares of Kennametal opened at $39.73 on Wednesday, Marketbeat.com reports. The firm has a market cap of $3.19 billion, a price-to-earnings ratio of 16.78, a price-to-earnings-growth ratio of 3.01 and a beta of 2.05. Kennametal has a 52 week low of $39.10 and a 52 week high of $39.47. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.60 and a quick ratio of 1.47.

Kennametal (NYSE:KMT) last issued its earnings results on Wednesday, May 2nd. The industrial products company reported $0.70 EPS for the quarter, missing the consensus estimate of $0.72 by ($0.02). The business had revenue of $607.94 million for the quarter, compared to the consensus estimate of $601.10 million. Kennametal had a net margin of 6.83% and a return on equity of 17.01%. The business’s revenue was up 15.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.60 EPS. sell-side analysts forecast that Kennametal will post 2.6 EPS for the current year.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. American International Group Inc. increased its position in shares of Kennametal by 0.6% in the 4th quarter. American International Group Inc. now owns 220,109 shares of the industrial products company’s stock valued at $10,655,000 after buying an additional 1,216 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in Kennametal by 41.1% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,019 shares of the industrial products company’s stock worth $243,000 after purchasing an additional 1,463 shares in the last quarter. First Mercantile Trust Co. increased its holdings in Kennametal by 25.7% during the 1st quarter. First Mercantile Trust Co. now owns 7,271 shares of the industrial products company’s stock worth $292,000 after purchasing an additional 1,488 shares in the last quarter. Strs Ohio increased its holdings in Kennametal by 23.5% during the 4th quarter. Strs Ohio now owns 10,500 shares of the industrial products company’s stock worth $508,000 after purchasing an additional 2,000 shares in the last quarter. Finally, D.A. Davidson & CO. increased its holdings in Kennametal by 40.0% during the 1st quarter. D.A. Davidson & CO. now owns 7,000 shares of the industrial products company’s stock worth $281,000 after purchasing an additional 2,000 shares in the last quarter. Institutional investors and hedge funds own 98.61% of the company’s stock.

About Kennametal

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.

Get a free copy of the Zacks research report on Kennametal (KMT)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Kennametal (NYSE:KMT)

Receive News & Ratings for Kennametal Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kennametal and related companies with MarketBeat.com's FREE daily email newsletter.



Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit