Zacks Investment Research Lowers KEMET (NYSE:KEM) to Sell

Zacks Investment Research cut shares of KEMET (NYSE:KEM) from a hold rating to a sell rating in a research note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “KEMET Corporation and its subsidiaries is the world’s largest manufacturer of solid tantalum capacitors and and one of the world’s largest manufacturer of multilayer ceramic capacitors. According to industry sources, tantalum and ceramic capacitors are the two fastest growing sectors of the United States capacitor industry. Capacitors are electronic components that store, filter and regulate electrical energy and current flow and are one of the essential passive components used on circuit boards. “

KEM has been the topic of a number of other research reports. ValuEngine downgraded KEMET from a hold rating to a sell rating in a research report on Thursday, August 1st. B. Riley boosted their price target on KEMET from $26.00 to $29.00 and gave the stock a buy rating in a research report on Friday, August 2nd. Finally, Stifel Nicolaus raised KEMET from a hold rating to a buy rating and set a $26.00 price target on the stock in a research report on Friday, September 13th.

NYSE:KEM opened at $20.65 on Tuesday. The stock’s 50-day simple moving average is $18.42 and its 200 day simple moving average is $18.20. The company has a market cap of $1.20 billion, a P/E ratio of 6.13 and a beta of 2.56. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.55 and a current ratio of 2.49. KEMET has a 52-week low of $15.55 and a 52-week high of $23.13.

KEMET (NYSE:KEM) last announced its quarterly earnings results on Thursday, August 1st. The electronics maker reported $0.78 earnings per share for the quarter, topping analysts’ consensus estimates of $0.67 by $0.11. The firm had revenue of $345.20 million for the quarter, compared to the consensus estimate of $343.72 million. KEMET had a return on equity of 36.26% and a net margin of 15.12%. The business’s revenue was up 5.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.55 earnings per share. As a group, equities analysts predict that KEMET will post 2.62 earnings per share for the current fiscal year.

In other KEMET news, SVP Ronald James Assaf sold 3,334 shares of the business’s stock in a transaction that occurred on Thursday, August 1st. The stock was sold at an average price of $21.90, for a total transaction of $73,014.60. Following the transaction, the senior vice president now owns 57,743 shares of the company’s stock, valued at $1,264,571.70. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, VP Shignori Oyama sold 22,500 shares of the business’s stock in a transaction that occurred on Thursday, August 15th. The stock was sold at an average price of $17.71, for a total value of $398,475.00. Following the transaction, the vice president now directly owns 117,070 shares in the company, valued at approximately $2,073,309.70. The disclosure for this sale can be found here. 1.76% of the stock is owned by insiders.

Several large investors have recently modified their holdings of the company. BlackRock Inc. boosted its holdings in shares of KEMET by 1.2% during the second quarter. BlackRock Inc. now owns 8,388,424 shares of the electronics maker’s stock worth $157,786,000 after acquiring an additional 97,450 shares during the period. Vanguard Group Inc. boosted its holdings in shares of KEMET by 0.4% during the second quarter. Vanguard Group Inc. now owns 3,628,077 shares of the electronics maker’s stock worth $68,244,000 after acquiring an additional 13,300 shares during the period. Bank of New York Mellon Corp boosted its holdings in shares of KEMET by 31.6% during the second quarter. Bank of New York Mellon Corp now owns 2,188,526 shares of the electronics maker’s stock worth $41,166,000 after acquiring an additional 525,793 shares during the period. Nuveen Asset Management LLC bought a new stake in shares of KEMET during the second quarter worth approximately $19,241,000. Finally, Raging Capital Management LLC bought a new stake in shares of KEMET during the second quarter worth approximately $17,818,000. Institutional investors own 80.23% of the company’s stock.

About KEMET

KEMET Corporation manufactures and sells passive electronic components under the KEMET brand worldwide. The company operates in three segments: Solid Capacitors, Film and Electrolytic; and Electro-Magnetic, Sensors, and Actuators. It offers tantalum, aluminum polymer, and ceramic capacitors; film, paper, and wet aluminum electrolytic capacitors; electromagnetic interference filters; and electro-magnetic compatible materials and devices, piezo materials and actuators, and various types of sensors.

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