Kennametal (NYSE:KMT) Shares Gap Down – Should You Sell?

Shares of Kennametal Inc. (NYSE:KMT) gapped down prior to trading on Friday . The stock had previously closed at $35.53, but opened at $33.10. Kennametal shares last traded at $33.9680, with a volume of 233,304 shares trading hands.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Jefferies Financial Group cut shares of Kennametal from a “buy” rating to a “hold” rating and set a $47.50 target price on the stock. in a report on Thursday, May 7th. JPMorgan Chase & Co. decreased their price target on shares of Kennametal from $40.00 to $34.00 and set an “underweight” rating for the company in a research note on Monday. Barclays downgraded shares of Kennametal from an “equal weight” rating to an “underweight” rating and lowered their price objective for the stock from $40.00 to $33.00 in a research report on Wednesday, May 27th. Zacks Research lowered shares of Kennametal from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Finally, DA Davidson started coverage on shares of Kennametal in a report on Tuesday, June 16th. They issued a “neutral” rating and a $34.00 target price for the company. Six research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $36.50.

Kennametal Stock Down 6.2%

The business has a 50-day simple moving average of $34.67 and a two-hundred day simple moving average of $35.98. The company has a market capitalization of $2.54 billion, a price-to-earnings ratio of 18.81, a PEG ratio of 0.22 and a beta of 1.36. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.99 and a current ratio of 2.38.

Kennametal (NYSE:KMT) last released its earnings results on Wednesday, May 6th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.68 by $0.09. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.The business had revenue of $592.59 million for the quarter, compared to analyst estimates of $568.03 million. During the same quarter in the previous year, the company posted $0.47 earnings per share. The company’s revenue for the quarter was up 21.8% compared to the same quarter last year. Kennametal has set its FY 2026 guidance at 3.750-4.000 EPS. As a group, equities analysts predict that Kennametal Inc. will post 3.23 EPS for the current year.

Kennametal Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, May 26th. Shareholders of record on Tuesday, May 12th were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Tuesday, May 12th. Kennametal’s payout ratio is currently 45.20%.

Insiders Place Their Bets

In other Kennametal news, VP Carlonda R. Reilly sold 12,013 shares of the company’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total transaction of $397,870.56. Following the completion of the transaction, the vice president owned 25,143 shares in the company, valued at approximately $832,736.16. This represents a 32.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Sagar A. Patel sold 29,499 shares of the firm’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $33.50, for a total transaction of $988,216.50. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 47,000 shares of company stock worth $1,583,326. 1.43% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in KMT. Rockefeller Capital Management L.P. lifted its position in Kennametal by 3,600.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 999 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 972 shares during the period. Kohmann Bosshard Financial Services LLC acquired a new position in Kennametal during the 4th quarter worth approximately $28,000. Danske Bank A S acquired a new position in Kennametal during the 4th quarter worth approximately $31,000. Headlands Technologies LLC raised its stake in shares of Kennametal by 80.7% during the 2nd quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company’s stock worth $35,000 after buying an additional 682 shares in the last quarter. Finally, Smartleaf Asset Management LLC raised its stake in shares of Kennametal by 142.3% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company’s stock worth $48,000 after buying an additional 1,228 shares in the last quarter.

Kennametal Company Profile

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.