Brandes Investment Partners Reduces $177M in Kennametal Inc. ($KMT)

Brandes Investment Partners has significantly reduced its stake in Kennametal Inc. (NYSE:KMT) according to its latest 13F filing with the SEC. The firm sold 4,965,772 shares, reducing its holdings by 48.5%. As of the end of the reporting period, Brandes holds 5,265,280 shares valued at approximately $184.2 million.

What Changed in Brandes Investment Partners' Kennametal Position

Brandes Investment Partners cut its position in Kennametal from 10,231,052 shares to 5,265,280 shares, a decrease of about 48.5%. The shares now have a reported value of roughly $184.2 million, reflecting a significant reduction in their investment.

Other Institutional Activity in Kennametal

Several other institutional investors also adjusted their positions in Kennametal. BlackRock, Inc. increased its holdings by 898,081 shares, ending with 12,160,015 shares valued at about $439.3 million. Vanguard Portfolio Management LLC established a new position with 5,554,409 shares worth approximately $200.7 million. Conversely, Dimensional Fund Advisors LP slightly trimmed its stake by 12,724 shares to hold 4,737,814 shares valued at $171.2 million.

Kennametal Stock Snapshot

Shares of Kennametal Inc. are trading near $34.98. The company has a market cap of about $2.67 billion and a P/E ratio of 19.65. Its forward P/E is 8.98, indicating potential future earnings growth. The stock has a 52-week low of $17.62 and a high of $43.81, with a 50-day moving average of $36.60 and a 200-day moving average of $31.16. Kennametal's current ratio is 2.38, and its quick ratio is 0.82, with a debt-to-equity ratio of 47.17.

Recent Earnings

Kennametal reported revenue of approximately $2.14 billion with a revenue growth rate of 21.8%. The company's net margin stands at 6.41%, and it achieved a return on equity of 10.76%. Earnings per share were $1.78. The next earnings report is expected on August 5, 2026.

Dividend

Kennametal pays an annual dividend of $0.80 per share, yielding 2.29%. The dividend payout ratio is 44.94%, indicating a sustainable dividend relative to its earnings.

Insider Buying and Selling at Kennametal Inc.

Recent insider transactions at Kennametal include Sagar Patel selling 29,499 shares at $33.50 each on June 8, 2026. Vice President Carlonda Reilly sold 12,013 shares at $33.12 on June 2, 2026. On the buy side, Douglas Dietrich and Shelley Bausch each purchased 697 and 575 shares respectively at $36.94 on May 26, 2026.

Analysts Set New Price Targets

On May 27, 2026, Barclays downgraded Kennametal to a 'sell' rating with a price target of $33. JP Morgan maintained its 'sell' rating with a $40 target on May 7, 2026, while Jefferies downgraded the stock to 'hold' with a $47.5 target.

About Kennametal Inc.

Kennametal Inc. is a leading provider of industrial tools and accessories, specializing in tungsten carbides and ceramics. Headquartered in Pittsburgh, Pennsylvania, the company operates through two segments: Metal Cutting and Infrastructure. It serves a diverse range of industries, including aerospace, automotive, and energy, with a strong global presence. Kennametal was founded in 1938 and is led by CEO Mr. Sanjay K. Chowbey.

Bottom Line

Brandes Investment Partners' decision to cut its stake in Kennametal by nearly half is a notable move in the investment community. While the reasons behind the reduction are not disclosed, such filings provide insight into institutional sentiment. Investors often track these filings to gauge market trends, although it's important to remember that 13F reports are backward-looking and may not reflect current positions.