Kadant (KAI) Lowered to Sell at Zacks Investment Research

Kadant (NYSE:KAI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Friday.

According to Zacks, “Kadant Inc. is a leading supplier of a range of products and systems for the global papermaking and paper-recycling industries, including de-inking systems, stock-preparation equipment, water-management systems, and papermaking accessories. Through its majority-owned Thermo Fibergen subsidiary, the company also develops and commercializes composite building materials produced from natural fiber and recycled plastic. Kadant is a public subsidiary of Thermo Electron Corporation.(Press Release) “

Several other research firms have also recently issued reports on KAI. ValuEngine raised Kadant from a “hold” rating to a “buy” rating in a report on Monday, November 12th. Barrington Research set a $112.00 price target on Kadant and gave the company a “buy” rating in a report on Wednesday, October 31st. Finally, Sidoti raised Kadant from a “neutral” rating to a “buy” rating in a report on Tuesday, December 11th.

KAI opened at $86.93 on Friday. The company has a market capitalization of $978.11 million, a price-to-earnings ratio of 16.52 and a beta of 1.12. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.88 and a quick ratio of 1.23. Kadant has a 1-year low of $76.44 and a 1-year high of $111.85.

Kadant (NYSE:KAI) last released its earnings results on Thursday, February 14th. The industrial products company reported $1.66 earnings per share for the quarter, topping analysts’ consensus estimates of $1.35 by $0.31. The firm had revenue of $163.94 million during the quarter, compared to the consensus estimate of $160.67 million. Kadant had a return on equity of 17.46% and a net margin of 9.53%. The firm’s revenue for the quarter was up 9.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.14 earnings per share. On average, analysts predict that Kadant will post 5.35 EPS for the current fiscal year.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Wasatch Advisors Inc. boosted its holdings in shares of Kadant by 165.9% during the 3rd quarter. Wasatch Advisors Inc. now owns 892,526 shares of the industrial products company’s stock worth $96,259,000 after buying an additional 556,816 shares during the period. Handelsbanken Fonder AB increased its stake in shares of Kadant by 43.2% during the fourth quarter. Handelsbanken Fonder AB now owns 770,867 shares of the industrial products company’s stock valued at $62,795,000 after buying an additional 232,564 shares during the period. Macquarie Group Ltd. increased its stake in shares of Kadant by 11.6% during the fourth quarter. Macquarie Group Ltd. now owns 704,600 shares of the industrial products company’s stock valued at $57,396,000 after buying an additional 73,020 shares during the period. Royce & Associates LP increased its stake in shares of Kadant by 17.8% during the fourth quarter. Royce & Associates LP now owns 573,285 shares of the industrial products company’s stock valued at $46,700,000 after buying an additional 86,463 shares during the period. Finally, Vanguard Group Inc. increased its stake in shares of Kadant by 0.9% during the third quarter. Vanguard Group Inc. now owns 521,542 shares of the industrial products company’s stock valued at $56,249,000 after buying an additional 4,865 shares during the period. 91.61% of the stock is currently owned by institutional investors.

About Kadant

Kadant Inc supplies equipment and critical components used in papermaking, paper recycling, recycling and waste management, and other process industries worldwide. The company operates in two segments, Papermaking Systems and Wood Processing Systems. The Papermaking Systems segment develops, manufactures, and markets custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper and balers, as well as related equipment used in the processing of recyclable and waste materials; and fluid-handling systems and equipment used in industrial piping systems to compensate for movement, as well as to transfer fluid, power, and data.

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