Kennametal Inc. (NYSE: KMT) stock fell -2.15% on Wednesday to $25.54 against a previous-day closing price of $26.10. With 0.6 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.08 million shares. During the session, the Tools & Accessories company that operates in wider Industrials sector, reached to the highest price of $25.92 whereas the lowest price it dropped to was $25.32. The 52-week range on KMT shows that it touched its highest point at $30.60 and its lowest point at $20.21 during that stretch. It currently has a 1-year price target of $27.44. With its current market cap of 2.07 billion, KMT has annualized dividend of $0.80 while the current yield stands at 3.13%. Beta for the stock currently stands at 1.87.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of KMT was down-trending over the past week, with a drop of -1.81%, but this was up by 1.07% over a month. Three-month performance dropped to -9.08% while six-month performance fell -4.13%. The stock lost -4.13% in the past year, while it has gained 6.15% so far this year. A look at the trailing 12-month EPS for KMT yields 1.51 with Next year EPS estimates of 1.87. For the next quarter, that number is 0.58. This implies an EPS growth rate of 166.90% for this year and 17.16% for next year. EPS is expected to grow by 4.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 23.30%.
Float and Shares Shorts:
At present, 80.61 million KMT shares are outstanding with a float of 79.88 million shares on hand for trading. On Apr 27, 2023, short shares totaled 6.18 million, which was 7.70% higher than short shares on Mar 30, 2023. In addition to Mr. Christopher Rossi as the firm’s Pres, CEO & Director, Mr. Patrick S. Watson serves as its VP & CFO.
Through their ownership of 106.43% of KMT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 64.36% of KMT, in contrast to 40.32% held by mutual funds. Shares owned by individuals account for 3.20%. As the largest shareholder in KMT with 15.48% of the stake, BlackRock Fund Advisors holds 12,467,236 shares worth 12,467,236. A second-largest stockholder of KMT, Ariel Investments LLC, holds 10,187,839 shares, controlling over 12.65% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in KMT, holding 9,405,255 shares or 11.68% stake. With a 7.26% stake in KMT, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 5,848,845 shares are owned by the mutual fund manager. The Vanguard Explorer Fund, which owns about 3.96% of KMT stock, is the second-largest Mutual Fund holder. It holds 3,184,949 shares valued at 82.68 million. Ariel Fund holds 3.62% of the stake in KMT, owning 2,916,490 shares worth 75.71 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, KMT reported revenue of $530.02M and operating income of $63.74M. The EBITDA in the recently reported quarter was $70.36M and diluted EPS was $0.50.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KMT since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With KMT analysts setting a high price target of $35.00 and a low target of $19.00, the average target price over the next 12 months is $27.50. Based on these targets, KMT could surge 37.04% to reach the target high and fall by -25.61% to reach the target low. Reaching the average price target will result in a growth of 7.67% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded KMT stock several times over the past three months with 4 Buys and 3 Sells. In these transactions, 10,633 shares were bought while 3,710 shares were sold. The number of buy transactions has increased to 45 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 281,398 while 43,446 shares were sold.