Kennametal Inc. (NYSE:KMT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “We believe that the positive impacts from Kennametal's organic and inorganic growth strategies as well as cost-reduction programs are more than offset by the negative impacts of near-term headwinds. For fiscal 2017, the company anticipates revenue to be flat compared with roughly $2 billion generated in fiscal 2016. Organic revenue is projected to decline 2% to grow roughly 2% while adjusted earnings are expected within $1.10-$1.40 per share. Also, the company is exposed to risks arising from foreign currency translation, stiff competition, high debt levels and uncertain economic conditions.”
A number of other research analysts have also weighed in on the company. Bank of America Corp. lowered Kennametal from a “neutral” rating to an “underperform” rating in a report on Thursday, July 7th. Seaport Global Securities lowered Kennametal from an “accumulate” rating to a “neutral” rating and set a $28.00 target price on the stock. in a report on Thursday, August 18th. Barrington Research boosted their target price on Kennametal from $28.00 to $31.00 and gave the stock an “outperform” rating in a report on Wednesday, August 3rd. Credit Suisse Group AG reissued a “hold” rating and set a $23.00 target price on shares of Kennametal in a report on Tuesday, August 2nd. Finally, Jefferies Group reissued a “buy” rating and set a $30.00 target price on shares of Kennametal in a report on Sunday, July 17th. Four investment analysts have rated the stock with a sell rating, five have assigned a hold rating and two have assigned a buy rating to the company. Kennametal presently has an average rating of “Hold” and a consensus target price of C$24.44.
Kennametal (NYSE:KMT) opened at 29.50 on Tuesday. The firm’s 50 day moving average price is $28.15 and its 200-day moving average price is $24.94. The company’s market capitalization is $2.35 billion. Kennametal has a one year low of $15.11 and a one year high of $29.83.
Kennametal (NYSE:KMT) last posted its earnings results on Tuesday, August 2nd. The company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.01. The business had revenue of $521.20 million for the quarter, compared to analyst estimates of $519.51 million. Kennametal had a positive return on equity of 7.51% and a negative net margin of 10.77%. The firm’s revenue was down 18.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.46 EPS. Equities analysts forecast that Kennametal will post $1.26 earnings per share for the current fiscal year.
Several hedge funds have recently added to or reduced their stakes in KMT. LS Investment Advisors LLC increased its stake in shares of Kennametal by 77.3% in the second quarter. LS Investment Advisors LLC now owns 4,878 shares of the company’s stock valued at $108,000 after buying an additional 2,126 shares in the last quarter. Tower Research Capital LLC TRC increased its stake in shares of Kennametal by 305.8% in the second quarter. Tower Research Capital LLC TRC now owns 6,136 shares of the company’s stock valued at $136,000 after buying an additional 4,624 shares in the last quarter. Bank of Montreal Can acquired a new stake in shares of Kennametal during the second quarter valued at $150,000. Cantab Capital Partners LLP acquired a new stake in shares of Kennametal during the second quarter valued at $223,000. Finally, Mackenzie Financial Corp increased its stake in shares of Kennametal by 6.2% in the second quarter. Mackenzie Financial Corp now owns 10,287 shares of the company’s stock valued at $227,000 after buying an additional 599 shares in the last quarter. Hedge funds and other institutional investors own 97.66% of the company’s stock.
Kennametal Company Profile
Kennametal Inc (Kennametal) is a supplier of tooling, engineered components and advanced materials consumed in production processes. The Company manages and reports its business in two segments: Industrial and Infrastructure. The Company provides wear-resistant products, application engineering and services backed by material science, serving customers across diverse sectors of industrial production, transportation, earthworks, energy, infrastructure and aerospace.
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