Kennametal (NYSE:KMT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors 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.”
KMT has been the topic of several other reports. Bank of America boosted their target price on Kennametal from $51.00 to $52.00 and gave the stock a “neutral” rating in a report on Friday, February 2nd. Wells Fargo reissued an “outperform” rating and issued a $48.00 target price (down from $53.00) on shares of Kennametal in a report on Thursday, April 19th. They noted that the move was a valuation call. Barrington Research reissued a “buy” rating and issued a $53.00 target price on shares of Kennametal in a report on Tuesday, May 1st. BMO Capital Markets reissued a “hold” rating and issued a $46.00 target price on shares of Kennametal in a report on Wednesday, April 18th. Finally, ValuEngine raised Kennametal from a “hold” rating to a “buy” rating in a report on Friday, February 2nd. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and five have given a buy rating to the stock. Kennametal presently has a consensus rating of “Hold” and an average price target of $49.18.
Kennametal opened at $39.73 on Wednesday, according to Marketbeat Ratings. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.47 and a current ratio of 2.60. The company has a market cap of $3.19 billion, a price-to-earnings ratio of 16.78, a P/E/G ratio of 3.01 and a beta of 2.05. Kennametal has a 1-year low of $39.10 and a 1-year high of $39.47.
Kennametal (NYSE:KMT) last released its quarterly earnings data on Wednesday, May 2nd. The industrial products company reported $0.70 earnings per share for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.02). The company had revenue of $607.94 million for the quarter, compared to analyst estimates of $601.10 million. Kennametal had a net margin of 6.83% and a return on equity of 17.01%. The firm’s revenue for the quarter was up 15.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.60 earnings per share. sell-side analysts predict that Kennametal will post 2.6 EPS for the current year.
Large investors have recently bought and sold shares of the business. Prescott Group Capital Management L.L.C. acquired a new position in Kennametal during the 1st quarter worth $201,000. Zurcher Kantonalbank Zurich Cantonalbank lifted 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 buying an additional 1,463 shares in the last quarter. Silvant Capital Management LLC acquired a new position in Kennametal during the 1st quarter worth $209,000. Koch Industries Inc. acquired a new position in Kennametal during the 1st quarter worth $220,000. Finally, Gideon Capital Advisors Inc. acquired a new position in Kennametal during the 1st quarter worth $229,000. 98.61% of the stock is currently owned by hedge funds and other institutional investors.
Kennametal Company Profile
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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