The stock price of Kennametal Inc. (NYSE: KMT) has jumped by 2.05 compared to previous close of 23.95. Despite this, the company has seen a fall of -6.50% in its stock price over the last five trading days. zacks.com reported 2024-08-07 that While the top- and bottom-line numbers for Kennametal (KMT) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Is It Worth Investing in Kennametal Inc. (NYSE: KMT) Right Now?
The price-to-earnings ratio for Kennametal Inc. (NYSE: KMT) is 18.13x, which is above its average ratio. Moreover, the 36-month beta value for KMT is 1.64. Analysts have varying opinions on the stock, with 4 analysts rating it as a “buy,” 2 as “overweight,” 6 as “hold,” and 1 as “sell.”
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The public float for KMT is 75.17M and currently, short sellers hold a 7.95% of that float. On August 07, 2024, KMT’s average trading volume was 697.63K shares.
KMT’s Market Performance
The stock of Kennametal Inc. (KMT) has seen a -6.50% decrease in the past week, with a 8.43% rise in the past month, and a -0.49% fall in the past quarter. The volatility ratio for the week is 3.75%, and the volatility levels for the past 30 days are at 2.91% for KMT. The simple moving average for the past 20 days is -1.26% for KMT’s stock, with a 0.10% simple moving average for the past 200 days.
Analysts’ Opinion of KMT
Many brokerage firms have already submitted their reports for KMT stocks, with Morgan Stanley repeating the rating for KMT by listing it as a “Equal-Weight.” The predicted price for KMT in the upcoming period, according to Morgan Stanley is $24 based on the research report published on January 08, 2024 of the current year 2024.
UBS, on the other hand, stated in their research note that they expect to see KMT reach a price target of $19, previously predicting the price at $27. The rating they have provided for KMT stocks is “Sell” according to the report published on July 08th, 2022.
Loop Capital gave a rating of “Hold” to KMT, setting the target price at $29 in the report published on April 06th of the previous year.
KMT Trading at 0.38% from the 50-Day Moving Average
After a stumble in the market that brought KMT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.89% of loss for the given period.
Volatility was left at 2.91%, however, over the last 30 days, the volatility rate increased by 3.75%, as shares surge +7.28% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.17% lower at present.
During the last 5 trading sessions, KMT fell by -6.39%, which changed the moving average for the period of 200-days by +5.43% in comparison to the 20-day moving average, which settled at $24.84. In addition, Kennametal Inc. saw -5.23% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at KMT starting from Witt John Wayne, who sale 579 shares at the price of $24.37 back on Jun 13 ’24. After this action, Witt John Wayne now owns 764 shares of Kennametal Inc., valued at $14,111 using the latest closing price.
Chowbey Sanjay, the President and CEO of Kennametal Inc., purchase 5,000 shares at $24.28 during a trade that took place back on Jun 10 ’24, which means that Chowbey Sanjay is holding 49,270 shares at $121,403 based on the most recent closing price.
Stock Fundamentals for KMT
Current profitability levels for the company are sitting at:
- 0.08 for the present operating margin
- 0.31 for the gross margin
The net margin for Kennametal Inc. stands at 0.05. The total capital return value is set at 0.08. Equity return is now at value 8.55, with 4.24 for asset returns.
Based on Kennametal Inc. (KMT), the company’s capital structure generated 0.33 points at debt to capital in total, while cash flow to debt ratio is standing at 0.48. The debt to equity ratio resting at 0.49. The interest coverage ratio of the stock is 6.27.
Currently, EBITDA for the company is 204.85 million with net debt to EBITDA at 2.65. When we switch over and look at the enterprise to sales, we see a ratio of 1.21. The receivables turnover for the company is 6.77for trailing twelve months and the total asset turnover is 0.82. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.42.
Conclusion
To wrap up, the performance of Kennametal Inc. (KMT) has been bad in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
