Kennametal (NYSE:KMT) Reaches New 1-Year Low - Should You Sell?

Kennametal Inc. (NYSE:KMT - Get Free Report) reached a new 52-week low during trading on Thursday . The stock traded as low as $19.96 and last traded at $20.00, with a volume of 251745 shares. The stock had previously closed at $21.94.

Wall Street Analyst Weigh In

Several research firms have issued reports on KMT. Morgan Stanley cut their target price on Kennametal from $28.00 to $24.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 12th. StockNews.com downgraded shares of Kennametal from a "buy" rating to a "hold" rating in a report on Monday, March 31st. Finally, Barclays decreased their price target on Kennametal from $25.00 to $24.00 and set an "equal weight" rating on the stock in a research note on Wednesday, March 26th. One equities research analyst has rated the stock with a sell rating and five have issued a hold rating to the company's stock. According to data from MarketBeat, Kennametal has a consensus rating of "Hold" and an average price target of $26.40.

Kennametal Price Performance

The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.13 and a current ratio of 2.53. The stock has a market capitalization of $1.36 billion, a price-to-earnings ratio of 14.37, a PEG ratio of 3.69 and a beta of 1.55. The company has a 50 day moving average of $21.74 and a 200 day moving average of $24.52.

Kennametal (NYSE:KMT - Get Free Report) last released its earnings results on Wednesday, February 5th. The industrial products company reported $0.25 earnings per share for the quarter, missing analysts' consensus estimates of $0.27 by ($0.02). Kennametal had a return on equity of 8.12% and a net margin of 4.76%. As a group, equities research analysts anticipate that Kennametal Inc. will post 1.17 EPS for the current year.

Kennametal Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, February 25th. Shareholders of record on Tuesday, February 11th were issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 4.56%. The ex-dividend date was Tuesday, February 11th. Kennametal's payout ratio is 65.57%.

Insider Activity at Kennametal

In other Kennametal news, CEO Sanjay Chowbey purchased 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 11th. The stock was purchased at an average price of $21.75 per share, for a total transaction of $217,500.00. Following the purchase, the chief executive officer now directly owns 77,595 shares in the company, valued at approximately $1,687,691.25. This trade represents a 14.79 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.41% of the company's stock.

Institutional Investors Weigh In On Kennametal

Several hedge funds have recently made changes to their positions in KMT. GAMMA Investing LLC lifted its position in Kennametal by 45.9% during the 4th quarter. GAMMA Investing LLC now owns 1,458 shares of the industrial products company's stock worth $35,000 after acquiring an additional 459 shares during the period. AMH Equity Ltd purchased a new position in Kennametal during the 4th quarter worth $1,441,000. Amundi lifted its stake in shares of Kennametal by 174.7% in the 4th quarter. Amundi now owns 40,359 shares of the industrial products company's stock worth $982,000 after acquiring an additional 25,666 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Kennametal by 1.0% in the third quarter. Geode Capital Management LLC now owns 1,815,939 shares of the industrial products company's stock valued at $47,096,000 after acquiring an additional 17,265 shares in the last quarter. Finally, Jane Street Group LLC increased its stake in shares of Kennametal by 113.7% during the third quarter. Jane Street Group LLC now owns 191,151 shares of the industrial products company's stock worth $4,957,000 after acquiring an additional 101,711 shares during the period.

Kennametal Company Profile

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.