Kennametal (NYSE:KMT) Shares Gap Down - What's Next?

Kennametal Inc. (NYSE:KMT - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $26.15, but opened at $25.43. Kennametal shares last traded at $25.59, with a volume of 133,423 shares trading hands.

Wall Street Analyst Weigh In

KMT has been the topic of several recent research reports. Barclays lifted their target price on shares of Kennametal from $24.00 to $25.00 and gave the company an "equal weight" rating in a report on Friday, August 9th. Loop Capital lifted their target price on shares of Kennametal from $22.00 to $24.00 and gave the company a "hold" rating in a report on Thursday, August 22nd. Bank of America lowered shares of Kennametal from a "neutral" rating to an "underperform" rating and set a $26.00 target price on the stock. in a report on Friday. Finally, StockNews.com upgraded shares of Kennametal from a "hold" rating to a "buy" rating in a report on Friday. Three equities research analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $24.33.

Kennametal Price Performance

The stock has a market cap of $2.02 billion, a PE ratio of 19.01, a P/E/G ratio of 2.65 and a beta of 1.65. 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 company's 50 day moving average is $25.32 and its 200-day moving average is $24.77.

Kennametal (NYSE:KMT - Get Free Report) last released its quarterly earnings results on Wednesday, August 7th. The industrial products company reported $0.49 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to the consensus estimate of $532.72 million. During the same quarter in the previous year, the firm posted $0.51 EPS. The firm's quarterly revenue was down 1.3% on a year-over-year basis. As a group, sell-side analysts predict that Kennametal Inc. will post 1.51 earnings per share for the current year.

Kennametal Dividend Announcement

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

Institutional Investors Weigh In On Kennametal

Several hedge funds and other institutional investors have recently modified their holdings of KMT. Wellington Management Group LLP increased its position in shares of 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 purchasing an additional 305,542 shares during the last quarter. Quadrature Capital Ltd increased its position in shares of Kennametal by 141.8% in the 4th quarter. Quadrature Capital Ltd now owns 37,534 shares of the industrial products company's stock worth $968,000 after purchasing an additional 22,010 shares during the last quarter. Azarias Capital Management L.P. bought a new stake in shares of Kennametal in the 1st quarter worth about $4,795,000. BNP Paribas Financial Markets increased its position in shares of Kennametal by 85.3% in the 1st quarter. BNP Paribas Financial Markets now owns 87,340 shares of the industrial products company's stock worth $2,178,000 after purchasing an additional 40,193 shares during the last quarter. Finally, Central Pacific Bank Trust Division bought a new stake in shares of Kennametal in the 1st quarter worth about $324,000.

About Kennametal

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.