Kennametal Inc. (NYSE: KMT) has experienced a significant increase in its stock price target, with Morgan Stanley raising it from $29.00 to $36.00. This adjustment reflects the firm’s current rating of “equal weight” on the industrial products company, which specializes in advanced materials and tooling systems.
Several other financial institutions have also recently updated their assessments of Kennametal’s stock. Notably, on January 14, 2026, JPMorgan Chase & Co. raised its target price from $25.00 to $37.00, although they assigned an “underweight” rating. Additionally, the Goldman Sachs Group set a price target of $32.00 in a report published on February 6, 2026. In a noteworthy upgrade, Zacks Research moved Kennametal from a “hold” rating to a “strong-buy” rating on November 12, 2025. Barclays also increased its price objective from $28.00 to $40.00, maintaining an “equal weight” rating.
The consensus among analysts indicates a mixed outlook for Kennametal. Currently, one analyst has rated the stock as a “strong buy,” five have given it a “hold,” and two have assigned it a “sell” rating. According to MarketBeat.com, the company holds a consensus rating of “hold” with an average target price of approximately $34.67.
Recent Financial Performance
Kennametal’s financial performance has shown positive trends. The company reported its earnings results on February 4, 2026, revealing earnings per share (EPS) of $0.47 for the quarter, surpassing the consensus estimate of $0.35 by $0.12. Total revenue for the quarter amounted to $529.53 million, exceeding the expected $514.70 million. The company achieved a return on equity of 9.46% and a net margin of 5.43%, with quarterly revenue up 9.9% year-over-year. In the same period last year, Kennametal earned $0.25 per share.
Looking ahead, Kennametal has set guidance for the third quarter of fiscal year 2026 at $0.500 to $0.600 EPS, with an annual estimate ranging from $2.050 to $2.450 EPS. Analysts project that Kennametal will post earnings of $1.17 per share for the current fiscal year.
Dividend Announcement and Institutional Support
In addition to the price target revisions, Kennametal has announced a quarterly dividend of $0.20 per share, set to be paid on February 24, 2026, to investors recorded by February 10, 2026. This dividend represents an annualized amount of $0.80 and yields approximately 2.0%. The company’s current dividend payout ratio stands at 55.94%.
Institutional investors have shown increased interest in Kennametal recently. Brandes Investment Partners LP raised its stake by 65.9% during the second quarter, acquiring an additional 3,238,093 shares, bringing its total to 8,154,119 shares valued at approximately $187.22 million. American Century Companies Inc. also expanded its holdings by 44.0% in the third quarter, owning 4,221,461 shares valued at around $88.36 million after purchasing 1,289,624 additional shares.
Other institutional movements include Arrowstreet Capital Limited Partnership, which increased its stake by 63.2%, and Apollo Management Holdings L.P., which acquired a new position valued at about $8.79 million. Russell Investments Group Ltd. significantly boosted its position by 828.9% in the same quarter.
Kennametal Inc. continues to position itself as a key player in the industrial technology sector, focusing on innovative solutions that enhance productivity and reduce operating costs for its customers.
