Kennametal (NYSE:KMT – Get Free Report) updated its third quarter earnings guidance on Wednesday. The company provided earnings per share guidance of $0.25-0.35 for the period, compared to the consensus earnings per share estimate of $0.48. The company issued revenue guidance of $510-530 million, compared to the consensus revenue estimate of $540.57 million. Kennametal also updated its FY 2024 guidance to 1.350-1.650 EPS.
Analysts Set New Price Targets
KMT has been the topic of a number of research reports. Barclays dropped their target price on shares of Kennametal from $26.00 to $25.00 and set an equal weight rating on the stock in a report on Thursday. The Goldman Sachs Group dropped their target price on shares of Kennametal from $26.00 to $23.00 and set a sell rating on the stock in a report on Thursday, November 2nd. StockNews.com upgraded shares of Kennametal from a hold rating to a buy rating in a report on Friday. JPMorgan Chase & Co. dropped their price target on shares of Kennametal from $26.00 to $24.00 and set an underweight rating on the stock in a research note on Thursday. Finally, Morgan Stanley initiated coverage on shares of Kennametal in a research note on Monday, January 8th. They issued an equal weight rating and a $24.00 price target on the stock. Two research analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, Kennametal currently has an average rating of Hold and a consensus price target of $24.75.
Kennametal Stock Up 3.3 %
Kennametal (NYSE:KMT – Get Free Report) last issued its quarterly earnings results on Wednesday, February 7th. The industrial products company reported $0.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.25 by $0.05. Kennametal had a return on equity of 9.94% and a net margin of 5.86%. The company had revenue of $495.30 million during the quarter, compared to the consensus estimate of $498.99 million. During the same period last year, the company earned $0.27 earnings per share. Kennametal’s revenue was down .4% on a year-over-year basis. As a group, equities analysts predict that Kennametal will post 1.54 EPS for the current fiscal year.
Kennametal Dividend Announcement
The company also recently declared a quarterly dividend, which will be paid on Tuesday, February 27th. Stockholders of record on Tuesday, February 13th will be paid a dividend of $0.20 per share. The ex-dividend date is Monday, February 12th. This represents a $0.80 annualized dividend and a dividend yield of 3.25%. Kennametal’s dividend payout ratio is currently 53.33%.
Kennametal announced that its Board of Directors has authorized a share repurchase plan on Wednesday, February 7th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the industrial products company to buy up to 10.6% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board of directors believes its shares are undervalued.
Institutional Investors Weigh In On Kennametal
A number of institutional investors have recently added to or reduced their stakes in KMT. Keeley Teton Advisors LLC acquired a new stake in shares of Kennametal during the first quarter worth about $272,000. Sei Investments Co. acquired a new stake in shares of Kennametal during the second quarter worth about $239,000. CIBC Asset Management Inc acquired a new stake in shares of Kennametal during the first quarter worth about $226,000. Mackenzie Financial Corp acquired a new stake in shares of Kennametal during the fourth quarter worth about $212,000. Finally, Bank of Montreal Can lifted its holdings in shares of Kennametal by 12.1% during the first quarter. Bank of Montreal Can now owns 7,089 shares of the industrial products company’s stock worth $206,000 after purchasing an additional 768 shares during the period.
Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.
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