Kennametal (NYSE:KMT) Cut to "Underperform" at Bank of America

Bank of America cut shares of Kennametal (NYSE:KMT - Free Report) from a neutral rating to an underperform rating in a research note issued to investors on Friday morning, Marketbeat Ratings reports. Bank of America currently has $26.00 price objective on the industrial products company's stock.

Several other equities research analysts have also commented on the company. StockNews.com upgraded Kennametal from a "hold" rating to a "buy" rating in a research note on Friday. Loop Capital upped their price target on Kennametal from $22.00 to $24.00 and gave the stock a "hold" rating in a research report on Thursday, August 22nd. Finally, Barclays lifted their price objective on Kennametal from $24.00 to $25.00 and gave the company an "equal weight" rating in a research report on Friday, August 9th. Three equities research analysts have rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $24.33.

Kennametal Stock Performance

NYSE:KMT traded down $0.44 during mid-day trading on Friday, reaching $25.71. The company's stock had a trading volume of 1,206,335 shares, compared to its average volume of 674,074. The firm's fifty day moving average price is $25.32 and its two-hundred day moving average price is $24.77. The company has a current ratio of 2.41, a quick ratio of 1.17 and a debt-to-equity ratio of 0.46. The stock has a market cap of $2.02 billion, a P/E ratio of 19.01, a PEG ratio of 2.65 and a beta of 1.65. Kennametal has a 12-month low of $22.08 and a 12-month high of $27.04.

Kennametal (NYSE:KMT - Get Free Report) last released its quarterly earnings data on Wednesday, August 7th. The industrial products company reported $0.49 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.05. Kennametal had a net margin of 5.34% and a return on equity of 9.17%. The firm had revenue of $543.31 million during the quarter, compared to analysts' expectations of $532.72 million. During the same period in the previous year, the company earned $0.51 earnings per share. The firm's quarterly revenue was down 1.3% on a year-over-year basis. On average, equities analysts forecast that Kennametal will post 1.51 EPS for the current fiscal year.

Kennametal Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 27th. Investors of record on Tuesday, August 13th were given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 3.11%. The ex-dividend date of this dividend was Tuesday, August 13th. Kennametal's dividend payout ratio is currently 59.26%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Brandes Investment Partners LP grew its position in shares of Kennametal by 35.1% during the second quarter. Brandes Investment Partners LP now owns 2,332,993 shares of the industrial products company's stock valued at $54,798,000 after purchasing an additional 606,477 shares in the last quarter. American Century Companies Inc. grew its holdings in Kennametal by 20.3% during the 2nd quarter. American Century Companies Inc. now owns 1,903,714 shares of the industrial products company's stock valued at $44,813,000 after buying an additional 321,876 shares in the last quarter. Wellington Management Group LLP increased its stake in Kennametal by 7.8% in the 4th quarter. Wellington Management Group LLP now owns 4,240,814 shares of the industrial products company's stock worth $109,371,000 after acquiring an additional 305,542 shares during the last quarter. Interval Partners LP purchased a new stake in shares of Kennametal during the 2nd quarter worth approximately $5,598,000. Finally, Azarias Capital Management L.P. bought a new position in shares of Kennametal during the 1st quarter valued at approximately $4,795,000.

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.