Does Wall Street Rate Kennametal Inc. (KMT) Shares A Sell?


As of Friday close, Kennametal Inc.’s (NYSE:KMT) stock was down -$1.84, moving down -6.91 percent to $24.79. The average number of shares traded per day over the past five days has been 4,395,740 shares. 2 times new highs have been achieved over the past 5 days, with a -$2.76 fall in that time frame. In the last twenty days, the average volume was 1,581,370, while in the previous 50 days, it was 992,470.

Since last month, KMT stock retreated -14.61%. Shares of the company fell to $24.35 on 03/17/23, the lowest level in the past month. A 52-week high of $31.22 was reached on 02/02/23 after having rallying from a 52-week low of $20.21. Since the beginning of this year, KMT’s stock price has risen by 3.03% or $0.73, and marked a new high 16 times. However, the stock has declined by -20.58% since its 52-week high.

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KMT stock investors should be aware that Kennametal Inc. (KMT) stock had its last reported insider trading activity 9 days ago on Mar 09. Witt John Wayne, the Vice President of the company, disposed of 800 shares for $29.61 on Mar 09. It resulted in a $23,692 divestment by the insider. Witt John Wayne sold 730 shares at an average price of $29.00 on Feb 17. The insider now owns 800 shares following the transaction. On Dec 08, Vice President Witt John Wayne sold 700 shares at $25.50 apiece. The transaction was valued at $17,850.

Valuation Metrics

Right now, Kennametal Inc. (KMT) has a P/E ratio of about 16.13. The stock’s beta is 1.89. Besides these, the trailing price-to-sales (P/S) ratio of 1.02, the price-to-book (PB) ratio of 1.60, and the price-to-cash flow ratio of 2584.05 may also be considered.

The latest dividend of $0.20 per share was paid out, remained unchanged from last year’s $0.20. On Thursday July 30 2015, a $0.02 dividend increase was announced.

Financial Health

In the three months ended December 30, Kennametal Inc.’s quick ratio stood at 0.90, while its current ratio was 2.10, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.48, and the total debt-to-equity ratio was 0.54. On the profitability front, the trailing twelve-month gross margin is 31.60% percent. In the year ended December 30, operating margins totaled 9.80%. Based on annual data, KMT earned $647.98 million in gross profit and brought in $2.01 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 8.70%. Return on equity (ROE) for the past 12 months was 10.10%.

In Kennametal Inc.’s quarter-end financial report for December 30, it reported total debt of $594.77 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. KMT’s revenue rose 2.1% to $494.79 million during the quarter, while net income inched up to $497.12 million. While analysts expected Kennametal Inc. to report $0.22 quarterly earnings, the actual figure was $0.27 per share, beating the consensus estimate by 22.70%. During the quarter, the company generated $70.11 million in EBITDA. The liabilities of Kennametal Inc. were 1.29 billion at the end of its most recent quarter ended December 30, and its total debt was $673.57 million. The value of shareholders’ equity is $80.53 million.

Technical Picture

This quick technical analysis looks at Kennametal Inc.’s (KMT) price momentum. With a historical volatility rate of 42.08%, the RSI 9-day stood at 20.98% on 17 March.

With respect to its five-day moving average, the current Kennametal Inc. price is down by -10.02% percent or -$2.76. At present, KMT shares trade -13.92% below its 20-day simple moving average and +1.22% percent above its 100-day simple moving average. However, the stock is currently trading approximately -1.00% below its SMA50 and -10.63% below its SMA200.

Stochastic coefficient K was 10.90% and Stochastic coefficient D was 21.59%, while ATR was 1.14. Given the Stochastic reading of 7.77% for the 14-day period, the RSI (14) reading has been calculated as 28.20%. As of today, the MACD Oscillator reading stands at -1.50, while the 14-day reading stands at -1.91.

Analyst Ratings

Kennametal Inc. downgraded its rating on Kennametal Inc. (NYSE: KMT) to a Sell in a note to investors on July 08, 2022. The analysts firm previously had a Neutral rating on the stock.Kennametal Inc. (KMT) has been rated Hold by analysts. According to 3 brokerage firms, KMT is a sell, and 6 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Kennametal Inc. stock as buy, with 1 recommending it as overweight.

With a median target price of $26.00, the current consensus forecast for the stock is $19.00 – $35.00. Based on these forecasts, analysts predict Kennametal Inc. (KMT) will achieve an average price target of $27.11.


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